The Salvation Army has earned high credibility in social work for the practical, non-political way that it goes about its mission. It deserves the same credit for social research on the strength of its annual state of the nation report. The latest, featured in the Herald yesterday, offers a more
Editorial: Sallies' report offers many reasons to feel positive
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The drop in younger beneficiary numbers may be due in part to the Government's more stringent work-seeking requirements. The number on the sole parent benefit fell 9.4 per cent last year. This may not translate into a decline in child poverty, the report cautions, because about half the children living below the statistical poverty line in 2012 were in wage-earners' households.
Incomes rose 2.6 per cent on average last year while the cost of living rose 1.6 per cent. Employees, with an average rise of 3.1 per cent, did better than the self-employed. The gap between the highest-paid employees and the lowest widened slightly over the year, which means the poor did not get poorer, they got relatively poorer.
The report shows that affording a house in Auckland and Christchurch has become even harder than it was at the height of the last boom. The median Auckland house price now exceeds 10 years of the average gross weekly wage. Household debt is rising again as economic growth gathers pace. The average household owes $121,200, giving a ratio of debt to earnings not quite as bad as five years ago but still nearly 150 per cent of the average household's annual income.
Housing costs and some other adverse trends leave plenty of problems for social policy but it is important to acknowledge progress too.
The Salvation Army's findings reflect a rising economic tide. Most boats are rising, though not all. Maori unemployment is still above 12 per cent and among Pacific people the rate is higher. The police are dealing with more child abuse and violence than ever, possibly because more of it is reported to them these days.
But it is the young people who offer most hope: fewer teen pregnancies, fewer on benefits, less drinking, more in education, employment or training. As they become taxpayers, they should not be having to pay pensions to the rising number of people who have not yet retired.