Housing a ‘hardship’ for poorest

Little to no progress has been made in reducing child poverty, with the cost of housing remaining a stubborn wall against lifting up the poorest families.

But while income inequality had remained static, median household incomes had risen 3 per cent in the year to June, according to the latest Household Income Report from the Ministry of Social Development.

It’s part of a suite of reports released annually which measure household incomes and a variety of other measures of wellbeing. The Incomes Report uses data from Statistics NZ Household Economic Survey to monitor trends in disposable household income to June 2016.

Despite a marked rise in incomes, poverty had remained persistent, mostly because of increased housing costs eating into more of the family budget.

While ‘‘strong real income growth’’ had been noted for most income groups, the report showed a significant group of 65+ households, whose income was little more than superannuation payments, bunched at the top of the poorest group and the bottom of the second poorest group.

The minimum wage rose about 7 per cent in real terms in the period, but beneficiary incomes were flat or declining in real terms. There are some housing quality issues, especially for children – they are concentrated among those already experiencing material hardship on other basic items.

An accompanying report showed 10 per cent of children were living in houses with a major problem with dampness and mould, and 13 per cent in houses with significant heating difficulties.

Of all the families who reported living in sub-standard housing, 70 per cent were in rental accommodation spread across 45 per cent in private rentals and 25 per cent in Housing New Zealand houses.

Social Development Minister Anne Tolley said the rise in incomes had shown the Government’s focus in strengthening the economy was paying off for families.

‘‘Since 2008 median household incomes have risen by around 11 per cent more than inflation – faster than in many other OECD countries. This contrasts with Australia, the UK, the US, France, Italy and Germany where real household incomes remain at or close to pre-GFC levels.

’’The report shows there is no evidence of any sustained rise or fall in household income inequality over the last two decades, and trends in child poverty and hardship are either flat or falling, depending on the starting point or measure used,’’ Tolley said.

The Green Party said the housing crisis was hurting the poorest the most.

‘‘New Zealanders on the lowest incomes are now spending 51 per cent of their income on housing, up from 29 per cent in 1990,’’ said co-leader Metiria Turei.

‘‘New Zealanders living in cold damp housing know that they are paying too much to live where they are, yet they are powerless to change it.

‘‘Only government can fundamentally improve how our housing market operates. But this National Government has shown no commitment to doing that, even after nine years of failed policy.’’

Turei said the report also noted the 2016 sample was ‘‘light’’ on sole-parent and beneficiary households.

‘‘This is the Government’s main report into household incomes. We would expect a through and complete picture. For the Government to not include a proportionate number of sole-parent and beneficiary households is simply not good enough.’’