A recently released Treasury briefing reveals that Louise Upston, Minister for Child Poverty Reduction, rejected official advice that would get New Zealand back on track to meet the 2028 target of halving child poverty.

CPAG Executive Officer, Sarita Divis states, ‘Not only has the Minister rejected official advice, she has not provided any solid evidence, modelling or data that shows her chosen path will result in us meeting the 2028 goal of halving child poverty.'

The Treasury briefing note reveals DPMC officials advised child poverty targets could be reached if Ministers agreed to invest around $3 billion per year. As economist Bernard Hickey points out, that figure is less than 1 per cent of GDP, and very near the $2.9 billion Ministers approved to deliver on tax cuts for landlords.

DPMC also provided the Minister with two other specific options, but chose to reject both options, and double-down on the more ambiguous plan of 'cutting taxes' and 'growing the economy' in order to lift children out of poverty.

Divis states, ‘We can accept that different Ministers might have different approaches to reducing child poverty, but Upston has not provided any compelling evidence that her plan will indeed work. At this point her plan appears to be more "concepts of plan" rather than a well-evidenced work programme.’

‘We know that ending child poverty is the right and compassionate thing to do. We have signed up as a country to halve child poverty and ensure all children have what they need to live up to their potential. The Minister of Child Poverty Reduction needs to be the greatest champion.’

Background

In 2018 all political parties then in government, except Act, supported the introduction of the Child Poverty Reduction Act and the goal to halve child poverty by 2028 (from 13% in 2018 to 6% in 2028 on the material hardship measure). Under the CPRA, intermediate targets are set every three years.

In June this year, Louise Upston, increased the third intermediate targets on two out of three measures, meaning an extra 24,000 children will remain living in material hardship.

The Treasury briefing revealed DPMC officials provided specific advice which would allow child poverty reduction targets to get back on track. This included advice that ‘new investment, for instance through Working For Families (WFF) tax credit changes, would provide greater certainty about achievable reductions by 2027/28.’ But this advice was rejected.

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