Child poverty rates for the year ended June 2022 were unchanged compared with the previous year, according to figures released by Stats NZ. Photo / Richard Robinson, File
Child poverty rates for the year ended June 2022 were unchanged compared with the previous year, according to figures released by Stats NZ. Photo / Richard Robinson, File
Opinion by Molly Grant and Kate Prickett
OPINION
It’s been four years since Aotearoa New Zealand set the goal of becoming “the best place in the world to grow up” and began measuring and reporting on material hardship.
After a 2.3 per cent decline in material hardship between 2018-21, no further gains were made this year.
Accordingto the child poverty statistics released today, StatsNZ estimated that the number of children living in material hardship plateaued at around 118,900 —10.3 per cent of all children.
The fact that more children did not fall into hardship despite the potential economic fallout of the pandemic, coupled with the cost-of-living crisis, should be celebrated. But, in terms of meeting the very modest short-term goals the Government had set for itself over this period, these numbers show a lack of progress.
Moreover, these numbers only captured experiences up until June 2022, well before the broader inflationary effects took hold.
The rising costs of everyday essentials — such as food, housing, and petrol — are hitting families hard, particularly those who are already struggling.
Next year’s numbers may tell a more devastating story. Groups who are more likely to be affected by hardship are whānau Māori and Pacific families who have seen no gains since 2019.
Families affected by disability were also three times more likely to experience hardship than those with no disabled people in the home.
We could anticipate this, though: when times get hard, we know that poverty trends reflect broader societal issues, further separating the haves from the have-nots.
For many children, this won’t be their first time dealing with hardship. Our research from Growing Up in New Zealand—the largest longitudinal study of child development in NZ involving over 5000 children — shows that many children living in hardship now would have already experienced hardship before today.
In our research, we can look at hardship across all of childhood. We see a disturbing one in five New Zealand children have lived in material hardship, and almost half of these children (44 per cent) have had to endure it more than once before leaving primary school. This means that too many children are going without the basics like fresh fruit and vegetables, proper clothing, and are putting up with being cold in the winter.
Molly Grant. Photo / Supplied
At age 8 we saw over 64 per cent of families in hardship had to borrow money from friends and family to cover costs. Additionally, 61 per cent were forced to buy cheaper food so they could pay for other necessities.
In short, many children can’t access the fundamental necessities that all children need for healthy development.
Our research highlights that, for many families, hardship is ongoing with some experiencing its impact on a continual basis and others cycling in and out of hardship.
During this cost-of-living crisis, the StatsNZ figures mean that we aren’t seeing families move out of hardship. This hardship won’t be a temporary hurdle for families to overcome, but a persistent problem that lingers on for years to come.
Other research using Growing Up in New Zealand data shows that children living in persistent disadvantage, or are even exposed to some disadvantage, are linked with poorer cognitive and behavioural outcomes.
These findings aren’t unique to Growing Up in New Zealand but are seen repeatedly in international research, too.
We know that the conditions children are growing up in play a crucial role in shaping their childhood, as well as longer-term health, employment opportunities, and family life.
There is also evidence that children’s first few years are particularly important for development. For our youngest children born during the pandemic and this cost-of-living crisis, knowing that hardship is far easier to fall into than to climb out of demands urgent action to ensure that our youngest generation receive the support they need to thrive.
Dr Kate Prickett. Photo / Jean Lachat
What can we do?
This past year the anticipated worst, given the broader economic upheaval, did not occur. Economic strategies that were implemented during this time — such as increases to benefit rates and half-price public transit — have staved off hardship for some families.
But the new poverty statistics aren’t encouraging given the ongoing economic crisis.
The most effective policies are ones that raise households’ incomes and help offset the big costs in people’s lives, like food, housing, and amenities. Because low-income families are more likely to experience hardship, policies that target raising incomes — like tax credits and increases to benefits—are most effective in tackling poverty.
Immediate action is needed to support the families and whānau who continue to bear the brunt of the broader economic forces beyond their control, and who do it harder than the rest of us when times are tough.
- Molly Grant is part of the research team at Growing Up in New Zealand longitudinal study and Dr Kate Prickett is the director of the Roy McKenzie Centre for the Study of Families and an investigator for Growing Up in NZ.
