The report showed 50,000 fewer children in New Zealand were classed as living in poverty since the 2016 report, but more than 400,000 were still going without necessities such as good shoes, clothes, food and visits to the doctor and dentist.
The report showed 7 per cent, 80,000 Kiwi children, were said to be in severe poverty, facing material hardship and living in a low-income household, but this was 10,000 less (down 1 per cent) on the previous year.
Meanwhile 290,000 children were living in homes where money was tight, down 5000 (1 per cent) from the previous year.
Rotorua district councillor Merepeka Raukawa-Tait said while there may have been a national reduction in poverty, there were a number of things that had to be improved in Rotorua before something similar would be seen here.
"Firstly we have to ensure adults are in permanent employment. Then we need to look at living costs like accommodation and transport, things that affect our Rotorua families."
She said Rotorua's housing problems were well known and contributed to poverty.
"We also need to ensure the health of our children. They need to be healthy. When all these things are improved, only then will we see a reduction in child poverty in Rotorua."
Kidscan chief executive and founder Julie Chapman said although the numbers should be celebrated, it didn't mean New Zealanders should sit back and say "job well done".
"This year alone Kidscan has gone from supporting 600 schools to a milestone 700. That's an increase from 135,000 children to 168,000 children who have access to our programmes providing the basics – food at school, clothing and health items."
She said the report results were a reflection of the concerted effort by charities like Kidscan.