Child poverty rates will barely shift in the coming years, latest Treasury forecasts show. Photo: 123rf
Child poverty rates will barely shift in the coming years, the latest Treasury forecasts show.
The new forecasts, which include some of the effects of Thursday's government Budget, showed no statistically significant change, a report published by finance minister Nicola Willis' office said.
Since 2018, the government has had to report on progress towards child poverty targets and whether the Budget will help to address child poverty rates.
The latest figures, for the year ending in June 2024, were released in February this year. The rates, which did not significantly change from the previous year, showed:
- 13.4 percent of children suffered from material hardship
- 12.7 percent lived in poor households before housing costs were taken into account
- 17.7 percent lived in poor households after housing costs were taken into account
None of the target rates for 2023/24 were met. This was "at least in part" because of the effect of inflation on the cost of living. the report said.
Treasury forecasts show the targets for 2026/27 and 2027/28 are also seriously in doubt, with poverty rates set to remain roughly at their current levels until at least 2029.
The 2027/28 targets set by the government were for only 5 percent of children to be living in poor households before housing costs were taken into account, and 10 percent of children once housing costs were included.
The report pointed to lifting the Working for Families threshold, and increasing the accommodation supplement in some regions, as measures that the government had introduced to support families living in poverty.
However, Treasury forecasts found that neither measure would have a statistically significant impact.
Other government initiatives, such as the new Social Investment Fund and early intervention for children with additional learning needs, could not be included in the modelling.
