Venu Menon
Wellington, February 24,2024
More children were living in poverty in New Zealand during the 12 months ending in June 2023 compared with the previous year, according to data released by Stats NZ.
“We have seen an annual increase in material hardship, indicating that more households were going without some of the essentials due to cost,” says Abby Johnston, General Manager of Social and Population Insights, Stats NZ.
A household experiences material hardship if it cannot afford fresh fruit or vegetables, heating, doctor’s visits, car maintenance, to buy meat, to pay for water or power, to buy or repair appliances or have a fallback amount of $500 for unforeseen expenses.
Says Louise Upston, Child Poverty Reduction Minister, “Figures released by Stats NZ show child poverty rates have increased, with the rising cost of living, driven by inflation, making it harder for families to afford the basics.”
Stats NZ data
The data shows around 143,700 (12.5%) children lived in households experiencing material hardship, up 2% compared to 2021/22.
Around 202,100 (17.5%) children were in poverty, based on household income after housing costs have been paid, up 3.1%.
The data further shows 146,000 (12.6%) children were in poverty, based on household income before the costs of housing are paid, up 0.9 %.
Child poverty rates for demographic groups
The report notes there is uncertainty in collecting exact figures for tamariki Maori, Pacific children, and disabled children. However, the trend indicates Maori, Pacific, and disabled children fared worse when compared to the total population.
The child poverty statistics provide estimates of low income and material hardship rates based on nine measures listed in the Child Poverty Reduction Act 2018.
By 2028, the Government wants to halve child poverty compared to the 2018 baseline, Minister Upston points out.
The data is based on a survey conducted between July 2022 and June 2023.
This is the fifth report on child poverty rates, as required under the Act. It compares data over the five years since the year ended June 2018.
These include measures of low-income – before and after housing costs are deducted – and of “material hardship at different levels of severity.”
The income measures of poverty were based on household income after tax, factoring in the number of people in the household and their age, which was then compared with the median household income of the general population.
Data collection for the year ended June 2023
Around 14,100 households were surveyed. Covid-19 impacted data collection and data quality for the year ended June 2022.
Poverty statistics have been published for the total child population since the year ended June 2018 (the baseline year).
“Supporting parents into paid work and breaking the shackles of welfare dependency will be the cornerstone of this Government’s strategy for lifting families out of hardship and reducing child poverty rates,” Minister Upston notes.
Venu Menon is an Indian Newslink reporter based in Wellington
