The Facts: Child Poverty in Aotearoa New Zealand
What is child poverty?
Child poverty is when children do not have access to the resources they need to thrive. This includes having enough income to afford healthy food, warm housing, healthcare, education, transport, and opportunities to participate fully in their communities.
Poverty is not simply about individual choices or parenting. It is largely shaped by income, housing costs, employment conditions, and government policy.
How many children experience poverty?
The latest Stats NZ figures show that child poverty remains widespread in Aotearoa New Zealand.
In the year ended June 2025:
Material Hardship is Rising: 14.3%, or 1 in 7, of New Zealand children (~ 169,300 kids) are now living in material hardship, meaning they regularly go without daily essentials like fresh fruit, doctor's visits, or adequate heating. This is a statistically proven increase from 2022’s 10.6%, our “best year”, meaning that 47,500 more children live in material hardship. The latest figure is a 10-year high in historical estimates.
Housing Costs Drive Severe Income Poverty: After paying for housing, 17.8% of children (~210,600 kids) live below the primary income poverty line (AHC50 Fixed). This confirms that high rents and mortgages remain a massive, structural driver of poverty. Looking at the broader supplementary measure (AHC60 Moving), about 1 in 3 children (29.9%) live in financially insecure households after paying for housing, totalling ~354,200 children. This is now comparable to levels during the 2008 Global Financial Crisis, despite the overall percentage rate being slightly lower today.
Severe and Consistent Poverty is Worsening: Around 106,000 children (8.6%) are now trapped in "consistent poverty" - meaning their families suffer from both low income and material hardship simultaneously. Furthermore, 71,000 children (6.0%) have been pushed into severe material hardship. These metrics of acute deprivation are at their highest levels in nearly ten years, highlighting a growing crisis for those at the very bottom of the income spectrum.
Stark Demographic Inequities Persist: The burden of poverty does not fall equally. Material hardship rates are disproportionately high for Pacific children (31%) and tamariki Māori (25.1%), compared to the national rate of 14.3%. Additionally, 26.9% of disabled children are living in material hardship, reflecting the severe "dual burden" of increased out-of-pocket care costs and systemic barriers to parental employment.
There was no statistically significant change in any of these measures compared with the previous year. After several years of progress, child poverty has stalled at levels that leave hundreds of thousands of children without enough income or resources to thrive.
The solutions are known. Enough is enough.
Who is most affected?
Child poverty can affect any family, but some groups face higher risks due to systemic inequalities, including:
Māori children
Pacific children
Children in sole-parent households
Children in families receiving income support
Disabled children and children with disabled family members
Children living in high-cost housing markets
These disparities are not inevitable. They reflect policy choices and longstanding inequities.
You can read more about the specific level of deprivations these communities face in our research section.
Why does child poverty matter?
Growing up in poverty can affect every aspect of a child's life.
Research shows that children experiencing poverty are more likely to face:
Poor physical and mental health
Housing instability and overcrowding
Barriers to educational achievement
Reduced opportunities for participation in sport, culture, and community life
Long-term impacts on wellbeing and future earnings
The effects of poverty can last a lifetime, but they are preventable.
What causes child poverty?
The main drivers of child poverty include:
Inadequate incomes from paid work or income support
High housing costs
Structural inequalities and discrimination
Gaps in the social welfare system
Barriers to employment and childcare
Families are often making impossible choices between rent, food, power, transport, and other essentials.
What works?
Evidence shows that child poverty can be reduced when governments:
Increase family incomes
Ensure benefits provide enough to live on
Invest in affordable housing
Support secure and well-paid employment
Improve access to healthcare, education, and childcare
Prioritise the wellbeing of children in policy decisions
Countries that make sustained investments in children achieve significantly lower poverty rates.
CPAG's Vision
Every child in Aotearoa deserves the resources they need not only to survive, but to flourish.
Child poverty is not inevitable. It is the result of policy choices—and it can be reduced through policy choices. Together, we can build an Aotearoa where every child has what they need to grow, learn, belong, and thrive.
