"The most severe negative effects are likely to be felt by those who are already disadvantaged," states the official briefing to Ardern as Minister for Child Poverty Reduction.

Child Poverty Action Group Executive Director Laura Bond says the official briefing shows that inequality has worsened due to the government’s current policies. "Children need to be our central focus now more than ever. The government has a moral responsibility to ensure all families have liveable incomes, and they are not currently meeting that responsibility."

Family job loss and reduced earnings, increased anxiety and mental distress, financial and family stress, increased social isolation, and long-term effects on the education and employment of young people are listed in the official briefing to the Prime Minister as some of the effects of the COVID-19 pandemic.

"CPAG’s own research supports the official advice that child poverty will increase as a result of the pandemic: we estimate a further 70,000 children will be locked into income poverty due to the current inadequacy of government policies to deal with the effects of the COVID-19 economic fallout," says Bond. "The impacts of COVID-19 have not fallen evenly, and our recovery must prioritise supporting children who are already disadvantaged.

"There is wide-ranging consensus that liveable incomes for all our children need to be an immediate priority," says Bond. "Currently policy settings are not going to get us where we need to be and we urge the government to show leadership and act now before these negative impacts become entrenched.

The report shows that 56% of children living in families receiving financial assistance don't always have enough healthy food to eat, and children living in high deprivation areas are twice as likely to end up in hospital than children in lower deprivation areas.

The report shows that to meet child poverty reduction targets by 2028, there needs to be ‘significant changes to the systems and structures to help families adequately provide for their children’. 20.8% of children currently live in low-income households, double the Government’s target of 10%*.  

“While there have been some positive steps forward by Government, this report demonstrates we need urgent change and bold leadership to ensure no child is left behind,” says Professor Innes Asher, CPAG’s Health spokesperson.  “We agree with the report that there is a need for ‘sustained, transformative action’ particularly in relation to adequate incomes so every child has the same opportunities to thrive”. 

The release of the report coincided with the Child Poverty Action Group’s stocktake of progress by the Government in its implementation of recommendations by the Welfare Expert Advisory Group. 

The CPAG stocktake found that of the 42 key recommendations, none have been fully implemented.

“After nearly two years since the release of the Welfare Expert Advisory Group recommendations, progress has been too slow, and it is to the detriment of children,” says stocktake co-author Professor Asher who also served on WEAG. 

“Our inadequate and ineffective welfare system continues to entrench poverty for children in households relying on income support. Children cannot wait – their minds, emotions, bodies are constantly developing and this development can be affected by chronic stress and lack of essentials,” says Professor Asher

“We share the Government’s vision of a New Zealand that is the best place in the world to be a child but based on current policy settings, we're not going to get there. We need bold action, and we need it now”.

*(As measured by households below 50% of median income, fixed-line, after housing costs).

For more information:

Professor Emeritus Innes Asher | Health Spokesperson, Child Poverty Action Group | +64 21 492 262

Laura Bond | Executive Director, Child Poverty Action Group | laura@cpag,org,nz | +64 22 3688211

None of the 42 key recommendations made by the Welfare Expert Advisory Group (WEAG) in February 2019 have been fully implemented, according to a stocktake released today by the Child Poverty Action Group. Of the 126 detailed recommendations, only 4 (3%) have been found to be fully implemented.

“The government says it wants welfare reform to enable people to live in dignity with adequate incomes, and it asked WEAG for a plan to achieve this,” says stocktake co-author Professor Innes Asher who served on WEAG. “But so far the government has delivered remarkably little of that plan.”

Seven of WEAG’s key recommendations have been “partially” implemented and a further 12 “minimally” implemented. For more than half (23) of the key recommendations, the researchers found no evidence of any implementation at all.

“Given WEAG found that people receiving benefits are living ‘desperate lives’ on ‘seriously inadequate incomes’, the progress on implementation appears unjustifiably slow,” says co-author Caitlin Neuwelt-Kearns.

The researchers note that while preparations for further action may be happening behind closed doors, the government has not publicly committed to many further specific WEAG responses, apart from a 2020 election promise to let people earn more in paid work before their benefit starts reducing.

“Children cannot wait – their minds, emotions, bodies are constantly developing and this development can be affected by chronic stress and lack of essentials,” says Prof Asher. “Fixing welfare is long overdue, and the government has now been sitting on the blueprint for essential work for nearly two years. We need to turn the vision into reality with urgency.”

PDF: What happened to ‘welfare overhaul’? A stocktake of implementation of the Welfare Expert Advisory Group’s 2019 recommendations by Caitlin Neuwelt-Kearns and Innes Asher, Child Poverty Action Group (November 2020)

MS Word: What happened to ‘welfare overhaul’? A stocktake of implementation of the Welfare Expert Advisory Group’s 2019 recommendations by Caitlin Neuwelt-Kearns and Innes Asher, Child Poverty Action Group (November 2020)

Unions, social service NGOs, housing providers, churches, and groups representing Māori, women, children and people with disabilities are among those who have signed an open letter to Prime Minister Jacinda Ardern, Minister of Social Development Carmel Sepuloni and Minister of Finance Grant Robertson urging them to lift inadequate welfare payments to "liveable" levels.

"The depth and breadth of organisations who have come together to make this call shows the consensus that this new government needs to immediately increase income support rates," says ActionStation economic fairness campaigner Ruby Powell.

Signatories include the Council of Trade Unions, National Council of Women, Mental Health Foundation, Citizens Advice Bureau, Tokona Te Raki (Māori Futures Collective), Salvation Army, Disabled Persons Assembly and Whānau Āwhina Plunket.

"The situation is urgent," the organisations say in the letter, citing the surge in emergency hardship grants and youth homelessness, and blaming long-term underinvestment in income support, high housing costs, and ongoing COVID-19 economic fallout including increases in unemployment.

The signatories ask the government to apply "common sense" to "make sure everyone, whether they are working, caring for children, living with a disability or illness, learning, or have lost their jobs before or because of COVID-19, has a liveable income." They say the extra support made available to those who lose their jobs due to COVID-19 shows the government understands "current benefit levels are insufficient and lock families and children into poverty."

Auckland Action Against Poverty say they are worried people will struggle to survive over summer.

"This government has said they want to lead for every New Zealander," says AAAP coordinator Brooke Stanley Pao. "Part of this is ensuring those facing direct financial difficulties and crisis aren’t immediately locked into poverty by low income support rates. This is what is happening now for increasing numbers of people across the country."

Child Poverty Action Group notes the government aims to make Aotearoa a great place to be a child.

"If income support were adequate, we could all sleep better at night knowing that we have collectively all done our bit to support parents and caregivers in their important mission, and ensured all children have more of an opportunity to have a safe, carefree, lively and playful childhood," says CPAG’s Janet McAllister. "Paid work is simply not possible for everyone. Meeting the needs of our children - ensuring we’re no longer denying them their rights - is the least we can do.

"The support for liveable incomes is strong and widespread."

*

OPEN LETTER to the Prime Minister, Minister of Social Development & Employment and Minister of Finance:

Dear Jacinda, Carmel and Grant,

No matter who we are or where we live, we know that our wellbeing is interconnected with those around us.

When everyone has what they need to look after themselves and fully participate in their communities, we all flourish.

We all want every child in Aotearoa to experience a thriving and happy childhood.

But right now, hundreds of thousands of children are constrained by poverty, despite parents’ best efforts.

We’ve had a long period of low wages and high housing costs. For decades, governments have underinvested in key public services that build well-being in all our communities, like public housing and income support. Many governments have prioritised policies that help the already well-off, including people who make money from housing.

As a result, too many parents are under-resourced, overstressed, and unable to give their children real opportunities to thrive.

Now due to the ongoing COVID-19 economic fallout, more families are being pushed into poverty.

Unemployment has risen at a record-breaking pace - increasing by nearly a third in the three months to September. Foodbanks and youth homelessness services are reporting huge increases in demand. By Christmas, it’s expected Work and Income will have allocated over 2.5 million hardship grants and advances this year alone.

The situation is urgent. As the new government, you can release the growing constraints on individuals, families, and children.

We are calling on you to lift one of the biggest limitations on whānau and child wellbeing: not having enough income.

During the height of the COVID-19 pandemic, you acted quickly to set up the COVID income relief payment, which is nearly twice the amount of the usual jobseeker benefit. You showed us that you understand that current benefit levels are insufficient and lock families and children into poverty - an issue that affects all of us.

Now, we are asking you to apply the same common sense approach to all income support. To make sure everyone, whether they are working, caring for children, living with a disability or illness, learning, or have lost their jobs before or because of COVID-19, has a liveable income.

Doing so will help achieve your vision of making Aotearoa the best place to be a child.

Before the election, the Labour party has consistently said there’s more work to be done to lift families out of poverty. You now have the mandate and opportunity to do so. Please increase income support before Christmas.

SIGNED:

Aotearoa NZ Association of Social Workers, Kore Hiakai Zero Hunger Collective, Network Waitangi Otautahi and Brainwave Trust Aotearoa are among nine organisations around the country who have joined the call since it went public this morning, urging Prime Minister Jacinda Ardern, Minister of Social Development & Employment Carmel Sepuloni and Minister of Finance Grant Robertson to lift inadequate welfare payments by Christmas.

The Salvation Army signed the letter in part because they are concerned that the COVID-19 economic fallout will increase hopelessness for many, as happened after the 2008 Global Financial Crisis.

"This is a critical time in our history, and we are concerned even more people will slip into entrenched poverty" says Ian Hutson, Director of the Salvation Army Policy and Parliamentary Unit. Hutson says when people have to battle day-to-day to put food on the table and find the rent, the emotional initiative that is sucked up by the struggle to survive leaves people without the energy or hope to find work. "People need enough income to stand up on so they can move on."

Jacqui Southey, Save the Children NZ Child Rights Advocacy and Research Director says food insecurity is growing, and "the evidence shows that when families have liveable incomes, they spend those incomes on their children: good food and education."

Arna Metcalfe, Vice President of the National Council of Women, points out the effects of COVID-19 on employment have been worse for women than men. "The impact of poverty disproportionately falls on women and it's vital we address that. Current benefit levels are not enough for people to live on with dignity."

Brendon Lane, Public Service Association Campaign Organiser says it is important to the PSA that "people are able to participate in our society. Having a fair level of income support is a key part of that."

ENDS

Open letter: https://medium.com/actionstation/open-letter-increase-income-support-before-christmas-7960c5100b10

Original media release and signatory list: https://www.cpag.org.nz/news/dozens-of-ngos-urge-jacinda-ardern-raise/ 

"Labour has won this election by a landslide on a platform of kindness and looking after each other - and their pre-election plan specifically includes ensuring adequate incomes for those receiving benefits," says ActionStation Economic Fairness campaigner Ruby Powell.

"Before the election, Jacinda Ardern consistently said there's more work to be done to lift families out of poverty. Now she has the mandate to do it," continued Powell.

Labour’s plans, announced pre-election, include welfare reform goals of "income adequacy so families that depend on the benefit are not living in poverty, and a culture change within government departments to ensure all people are treated with respect".

Child Poverty Action Group spokesperson Janet McAllister describes those goals as "vital, sensible, and well within the new government’s power to achieve almost immediately".

"There’s no time to lose - our research this year shows benefit levels are currently so low they lock many children in the severest poverty," says Ms McAllister. "Current policies are intensifying our poverty crisis.

"Income adequacy and respect will go a long way to ensuring our welfare system upholds the mana and dignity of all New Zealanders," says Ms McAllister.

JobSeeker recipients have increased by over a third since COVID-19 hit, from 152,000 in March to 204,000 in September. The Winter Energy Payment - doubled this year due to COVID-19 - ended October 1. Those who lose their jobs can only receive the COVID Income Relief Payment for 12 weeks.

"Whānau desperately need more support," continued Powell. "Improving our welfare system so that it provides liveable incomes is essential to creating stability for everyone, most importantly our tamariki."

Auckland Action Against Poverty spokesperson Brooke Fiafia says "It’s time for Labour to walk their talk on welfare reform.

"They have called on all of us as the team of five million to look after each other - and we all are. Now Labour must do their part to ensure everyone gets decent government support. Their election night result means they have no more excuses.

"We are also calling on Labour to end all benefit sanctions which are petty and counterproductive. And to ensure everyone has the right to form and keep supportive relationships, rather than being punished or excluded from income support because they’re dating, or have a partner," states Fiafia.

Fiafia says guaranteeing the current Covid Income Relief Payment level of at least $490 to all single people studying or not in full time employment - with additional payments to families with children - would lift most people out of poverty.

Alleviating income poverty for children 

Our research shows a key element in reducing child poverty is improving incomes for beneficiaries and low-paid workers. The high rates of poverty for Māori and Pacific families require urgent attention and effective action. Offering a bit more to only some families in poverty is not enough. Any plan to lift children and their families out of poverty needs to be comprehensive and transformative. The Green Party and the Māori Party are both offering numerous policies which would lift many children out of severest poverty. Labour is offering a sensible plan to bridge the gap between welfare and higher education and paid work, which will help those whānau for whom paid work would be beneficial but who currently are unable to afford to make that jump. NZ First offers a universal family benefit, but it is unclear what current spending they would wish to reduce for this to happen. National postponing the minimum wage raise would be detrimental to children in low-income households whose caregiver/s are in paid work. Act would reduce benefits, a cruel and punitive policy. 

Achieving housing security for children   Adequate housing security for children depends on there being a sufficient supply of affordable housing for families alongside fair tenancy laws which support tenure security.  During the COVID-19 recession amazingly house prices have continued to rise on account of monetary and banking policies and the failure to tax wealth and capital gains.  Tinkering with the RMA or building regulations or alternative tenure options like co-housing and progressive home ownership is merely window dressing.  Policies which tax housing wealth and discourage excessive consumption in lavish houses and second and third homes will begin to address the huge imbalance in housing markets which has contributed to a chronic shortage in affordable housing.  Housing policies of the Greens and Maori Party are the only ones which attempt to address this imbalance.  

Ensuring the health system supports equity of outcomes for all children 

Any policy that truly assists in closing the health-inequity gap for our children will acknowledge that the current system is discriminatory and has racist consequences which need to be pro-actively addressed through ensuring empowered Māori leadership. In order to close gaps, the system needs to ensure other communities are also empowered and included in health service decisions - this is more likely to happen in a genuine Treaty partnership model than the system we currently have. 

We assessed the announced policies of parties that have been represented in parliament over the past two terms.

“Should I have to start taking medication [for my anxiety] because there is a lack of resources, because there is a lack of support?” asks one mother of a child with disability in CPAG’s new report released today ‘Living well’? Children with disability need far greater income support in Aotearoa.

“Caregivers and their children should not be facing such despair,” says report co-author Jane Lee, who interviewed several mothers of children with disability for her Masters of Social Work research, and who parents a child on the autism spectrum herself. “Parents go above and beyond, often putting themselves in debt, but their children still often don’t receive the care or resources they need or are entitled to.”

In the United Kingdom, disability allowances are paid at roughly three times the rate in Aotearoa – and children with disability there are no more likely to live in poverty than children without disability.

In Aotearoa, the Child Poverty Action Group recommends an increase in the rate of support for children with disability, increased flexibility, easier access and better promotion of the support.

 “You’re never told what you are entitled to, you have to try and figure it out yourself,” one mother says in the Living Well? report. “Basically, I thumb a ride through Facebook and ask other parents what they got and how they got it.”

This lack of promotion exacerbates inequities and discriminates against Māori and Pacific whānau and families – similar to patterns of Disability Allowance access among adults. In 2016, in the predominantly Pacific, low-income Auckland suburb of Otara, four out of every five households with children with a disability or chronic health condition were unfamiliar with the child disability allowance and/or unaware that they could receive assistance from Work and Income at all.

“This lack of effective promotion is institutional racism and an indictment on our system,” says CPAG spokesperson Talavao Ngata. “If you don’t know about support, then it simply doesn’t exist.”

A disability sector election forum moderated by Susie Ferguson is being held 4pm this afternoon [Thurs Oct 1] in Wellington, and will be livestreamed.

 Living Well? recommendations include several CPAG election priorities, including: 

• Increasing the base Child Disability Allowance and then set it at a variable rate according to severity of disability. 
• Promoting and increasing access to various supports for children with disability, for groups who currently have low access, particularly Māori and Pacific people. 
• Increasing the OSCAR subsidy rate for those children who receive the Child Disability Allowance. 
• Immediately replacing the Carer Support subsidy with the ‘I Choose’ programme as was initially scheduled for 2019, thus enabling carers to manage their own respite through lump sum payments and to choose a respite option that suits their own whānau circumstances. 

Living Well? as a Word document

Living Well? as a large-print Word document

Living Well? as a PDF

Authors: Caitlin Neuwelt-Kearns, Sam Murray, Dr Jin Russell and Jane Lee

Child poverty stats can be tricky and they're in the news a lot in the lead-up to the election; We’ve put this information together in the hope it helps assist interpretation.

First, a bit of background: Good news: We have near-consensus on how to measure child poverty in NZ. In 2018, 118 MPs voted for the Child Poverty Reduction Act. The Act, on its own, doesn’t reduce child poverty, but it compels us to measure it and the government to set reduction targets on three measures. Having multiple measures allows us to build up a clearer picture of this important & complex issue. As per the Child Poverty Reduction Act, Stats NZ now reports on nine annual measures of child poverty, nationally, regionally & by ethnicity. Stats NZ measures of child poverty include material hardship; and income before housing costs, & after housing costs, compared to a general NZ household median. Different income measures treat inflation differently – some are more sensitive to it than others (important in a recession).

It’s too early to see how child poverty changed this term of government, on Stats NZ measures. More timely (but proxy) poverty indicators include employment, welfare, health, housing & foodbank stats.

There are two main reasons it’s too early to see if/how child poverty changed in this government term: data time period & sample error. All Stats NZ child poverty measures reflect change slowly as each is informed by two years of data, while analysis takes several months.

So the latest 2019 child poverty figures, released in Feb 2020, actually reflect data mid-2017 to mid-2019. That means, for example, effects of the Coalition Government's Families Package are only partially included in the most recent data, because it didn’t come in until mid-2018.

This is because data come from the Household Economic Survey, & HES is conducted over 12 months, & every respondent is asked about their income over the 12 previous months. (Btw, latest figures released reflect responses from 20,000 households, rather than 3500-5500 previously)

Sample error: To see how likely the reported annual change is, we have to compare it to its "sample error" (like "margin of error"). (Righthand columns in the table at end of this Stats NZ release) If an "annual change" is a smaller change than "sample error on change", then it is "not statistically significant". For these figures, that means we cannot be 95% sure that the change really happened as reported. If an "annual change" is a smaller change than "sample error on change", then the smaller it is, the less certain we can be that it actually happened. (Thanks to StatsNZ for their clear & comprehensive explanations; any errors are our own.)

In the latest release, only 2 of the 9 child poverty measures ("a" & "e") reported by StatsNZ had annual changes bigger or the same as the "sample error on change". Material hardship, for example, remained similar to what it was previously (that's all we know).

The graph above shows child poverty "moving line" relative poverty over 13 years (StatsNZ measures f, g & h). The lines waver sometimes, but the flat trend over time is partially why CPAG maintains we need to see a significant reduction of child poverty across after-housing-costs & hardship figures, sustained over several years before we can say government policies have helped lift the burden of poverty from our children & tamariki and their whānau.