28 Feb 2014: News from CPAG
Revised figures show government policies have failed poorest
Child Poverty Action Group says new figures from Statistics New Zealand and Treasury show the impact of the global
financial crisis has been much more severe for poor children than previously believed.
Child poverty figures for 2010, 2011 and 2012 have been significantly revised upwards. The new figures show 25,000 more
children living below the very low 50% (after housing costs) poverty line. CPAG's economics spokesperson, Dr Susan St
John says, "This shows the failure of government policies to protect the poorest children during the recession and
subsequent sluggish economic recovery."
St John says, "CPAG was puzzled in 2010 that the numbers produced by the Ministry of Social Development did not fully
reflect what was reported in the community and what social agencies were saying. It seemed implausible that lower
incomes were not to blame for the increased numbers of people seeking help from food-banks and budgeting agencies."
"Working for Families, which the government claims has protected families through the recession, has done no such thing
for those families most affected. Parents who lost work in the deep and painful recession are likely to have also lost
entitlement to the In Work Tax Credit (at least $60/week) for their children. The revised figures are now corroborating
this effect."
In 2013 the Court of Appeal said that the In Work Tax Credit policy discriminated with harmful effect against 230,000 of
New Zealand's poorest children in families on benefits. While the Court failed to declare this discrimination unlawful,
society needs to confront the harm done to so many children
St John says, "We challenge the government to look again at its own policies that have increased child poverty."
Additional information:
by Assoc Prof Susan St John
--ENDS--