ENSURING BENEFIT RECIPIENT INCOME LEVELS SUPPORT FAMILY WELLBEING
Children whose families receive a benefit as their main source of income (around 200,000 children), are four times more likely than other children to live in poverty (material hardship).
CPAG recommends that main benefits increase to a level where they cover usual housing costs for people living in the least expensive housing regions, so that the Accommodation Supplement is largely used only for those in high-cost housing areas.
Couples need substantially more income to cover total costs, and raising benefits – rather than raising supplementary assistance – is the most effective way of ensuring all couples receiving benefits get the income they need.
RECOMMENDATIONS
That income support entitlements for benefit recipients (being the total of main benefits plus Working for Families and Accommodation Supplement / Income-related Rent Subsidies) be lifted and maintained at levels adequate to cover total likely typical costs (i.e. core, participation, allowances and contingency expenditure) for all benefit recipients. This includes (but is not limited to) raising the couples rate for Jobseeker and Supported Living Payments to double the singles rate.
This in line with the Welfare Expert Advisory Group principle that income support must be “adequate for meaningful participation in the community” and that this level is “maintained over time”.
That the increase of income support entitlements (to cover total likely typical costs) is primarily implemented via increases to main benefits and Working for Families, rather than in supplementary assistance such as the Accommodation Supplement.
That all debt to MSD be wiped, given (i) it is the result of inadequate income entitlements, and (ii) ongoing repayments deplete family resources.
That the main benefit abatement threshold be pegged to the equivalent of 15 hours of the minimum wage.
That robust independent research be resourced and commissioned on a regular (2-year) basis – including Kaupapa Māori research and Pacific research – into total likely expenditures around the country for the recipients of different main benefits, to inform the understanding of minimum income standards and adequate benefit levels, and to inform changes when necessary.
That the government conduct an inquiry into the financial position, challenges and strategies of the country’s poorest families in order to assist identification of the resources and policies required to ensure these and all families have full enjoyment of all their rights.
That services, such as public transport, primary healthcare (dental care, doctors’ visits and prescription charges) and early childhood care and education (ECCE) are made free of charge to all, in order to reduce costs for many benefit recipient families.
IMPACTS AND INDICATORS
If implemented, these actions would be steps towards moving Aotearoa to be a nation where all children and families flourish free from poverty.
Significantly more children and their families will live free from the toxic stress of poverty. They will have better life outcomes, better health, more choices and be better able to contribute to society. The research is clear that giving families enough money is the most effective way to create positive outcomes.[v]
The Government would be much more likely to meet its child poverty reduction targets and meet them on schedule, including reducing material hardship. Child poverty would also measurably reduce on a range of other indicators.
Ensuring adequacy of benefit-recipient incomes is relevant to
The Crown meeting its obligations under te Tiriti o Waitangi. The Waitangi Tribunal (2019) recommends the Crown commit itself to achieving equitable health outcomes for Māori; and income is an important social determinant of health
New Zealand meeting its targets for UN Sustainable Development Goal 1: “End Poverty in All Its Forms Everywhere”
New Zealand meeting its obligations under the UN Convention on the Rights of the Child.
And it is an essential step towards the national vision “that New Zealand be the best place in the world for children and young people”.
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