Shifting goal posts: Update on child poverty reduction in Aotearoa

Background:

An adequate standard of living is a basic right of every child. The Child Poverty Reduction Act 2018 requires Governments to set targets for reducing child poverty and specifies measures to track progress. Interim targets set for 2026/27 allow a higher proportion of children to live in income-poor households and in households experiencing material hardship than previous targets.

Methods:

Data were collated from Stats NZ Child Poverty Statistics to present the proportion of children living in income-poor households before and after taking housing into account, and in households experiencing material hardship (forced to go without six or more essentials because of cost). Children are defined as aged 0-17 years.

Results:

In 2022/23, approximately 237,400 children (20.5%) were living in low-income households (incomes less than half of the contemporary median income) after adjustment for housing costs.

Between 2021/22 and 2022/23 there was a statistically significant increase in the number and proportion of children living in households where income decreased in real terms (adjusted for inflation) from 2017/18 baseline. This fixed-line measure is important because it is independent of changes in annual median incomes.

There was a significant increase in the proportion of children living in households experiencing material hardship from 2021/22 (10.5%) to 2022/23 (12.5%). Mandated reporting on the whole child population masks inequity by ethnicity and by disability status. In 2022/23 material hardship rates were 21.5% for tamariki Māori, 28.9% for Pacific children, 9.4% for European children, 22.3% for disabled children and 8.5% for non-disabled children.

Conclusion:

Current interventions are not achieving significant and sustained reduction in child poverty as envisioned in the 2018 Act. Regular reporting provides data which child health professionals can use in advocacy to address inequity in determinants of health and uphold the right of every child to enjoy the highest attainable standard of health.