13 August 2015

Government Household Incomes Report: UNICEF NZ calls on Prime Minister to make good on his promise to children

The Household Incomes Report released this morning shows that children, our most valuable and most vulnerable citizens, are still the population most likely to live in poverty and despite small change in the Budget, this situation is getting worse.

The report demonstrates the need for Government to stop tinkering on the margins and invest heavily in policies that boost incomes and improve the availability of good quality housing to families with children.

“Today’s Household Incomes Report shows an increase in children living below 60 percent of the median income poverty line from 260,000 in 2013 to 305,000 in 2014 after housing costs - an increase of 45,000 at a time when Government has said that solving poverty is a priority,” said Deborah Morris-Travers, National Advocacy Manager at UNICEF NZ.

“This increase from 24 to 28 percent of children is attributed to a 3-5 percent increase in median incomes and confirms that the Government's reliance on economic growth as the way out of poverty, does nothing for those on benefits and on very low fixed incomes. New, bold, plans and policies are required to lift the incomes of those on benefits and on very low wages so that children can thrive.

“The increase in poverty announced today is clearly unacceptable by anyone's standards. The Prime Minister needs to make good on his promise to prioritise solutions to child poverty and deliver real change through boosting benefits, fixing tax cuts and improving access to quality housing for people on low incomes.”

The report confirms those on higher incomes continue to do much better than those on low incomes. Families on low incomes live vastly different lives from others, with the Material Wellbeing Index (also released today) showing a much higher likelihood of children missing out on meat, fruit and vegetables, with their families having insufficient income to meet the basics, using food banks, living in a damp, mouldy home, having poor health, and being very dissatisfied with life.

The report also states that house prices relative to incomes have resulted in people on low incomes having Outgoings To Income (OTI) ratios that are at a “historical high”. 75 percent of those receiving the Accommodation Supplement spend more than 40 percent of their incomes on housing.

Ms Morris-Travers added, “The fact is that Government policy has the single biggest impact on poverty, yet successive governments have been complacent about child wellbeing and made the political choice to ignore this fundamental priority. The Government has a responsibility to respond to realities like unemployment and sole parenthood in the best interests of every child.

“With overwhelming evidence about the impact of poverty on children’s health and education, it is time for the Government to step up, develop a comprehensive plan and invest heavily in children so that their right to a decent standard of living* is met,” said Ms Morris-Travers.

*Article 27 of the United Nations Convention on the Rights of the Child affirms children’s right to a standard of living that supports their physical and mental needs. It calls on Government to help families provide this.

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