NZ rates poorly compared to EU countries, but past successes can be replicated

The latest Child Poverty report by the Ministry of Social Development reveals that although New Zealand is currently failing our most vulnerable children, we have made progress on child poverty in the past, and can choose to do that again.

New Zealand’s child poverty rates compare poorly to European countries

The report, authored by MSD Principal Advisor Bryan Perry, shows that New Zealand’s current child poverty rates compare poorly to European countries, with our material hardship rates above the majority of EU nations.

Using the Stats NZ standard measure,12.5% of children experienced material hardship in 2022-2023. In real terms that means,144,000 children were living in homes that could not afford at least 6 out of 17 items regarded as essential. These are things like having access to warm clothes, a raincoat, and doctors’ visits.

‘It also includes things that bring joy, boost self-esteem, and give connection in children’s lives: the ability to go on school trips, join sports teams, and have their birthdays celebrated. These are important things that all children should be able to experience’, says Child Poverty Action Group (CPAG) EO Sarita Divis.

CPAG has developed a suite of policy recommendations that would fix income adequacy and ensure all children get access to the things they need to live a good life. In particular, CPAG recommends main benefits be increased to a level where they cover usual housing costs for people living in the least expensive housing regions, and the Accommodation Supplement be largely confined to high-cost housing areas.

Intervention for the public good has resulted in progress in the past, so we can do it again

‘Our message to New Zealanders, is that we must act now to turn it around. It is something that we have made progress on in the past, and we can do it again,’ says Divis.

Indeed, the analysis of longitudinal data in the report provides valuable insight into how previous government actions have impacted child poverty in the past. For example, child poverty rates improved after various governments intervened with initiatives like Working for Families, income-related rents, and increases in government support for low-to-middle income households with children.

‘Although CPAG has always maintained that these interventions were never fast or strong enough, the good news is that we can point to times in our history when the government changed its approach and there were positive changes for children in our country,’ Divis says.

CPAG agrees with Dr Claire Achmad, the Chief Children’s Commissioner, that our politicians must work together on a cross-party basis and make ending child poverty an ‘enduring project of national significance.’ The first step is to meet the goal of halving child poverty by 2028.