September 8, 2016

Families now spend half their incomes on housing

Fifty per cent of renters receiving the accommodation supplement are now spending more than half of their income on housing costs, according to Ministry of Social Development data released today.

The MSD’s Household Incomes Report lifts the lid on poverty and hardship rates in New Zealand and says 85,000 children live in households with the greatest material hardship.

“The overrepresentation of children continuing to live in real material hardship in our country is appalling and we see no real improvement since the 2014 report. Taking into account housing costs, the inequality in New Zealand household income is increasing,” says UNICEF New Zealand Executive Director Vivien Maidaborn.

Ms Maidaborn acknowledged the real and immediate concern for the 85,000 children living in households where their families cannot afford even the basics of living, but stressed that the concern did not end there.

“We remain focussed on the larger group of families, including 295,000 children where low incomes and increasing housing costs place even more families under real pressure.

“Even more unacceptable is that half of these children experiencing hardship are Māori and Pasifika kids, even though Māori and Pasifika people make up only 30 per cent of the population.

“We are in danger of accepting a level of hardship as normal, with the associated poor housing, low incomes, and poor health.”

Ms Maidaborn went on to say there had been much confusion about the difference between low income and material hardship, with figures ranging between 85,000 and 295,000.

“The 2015 Housing Income Survey said there were 295,000 children living in households with income poverty, defined as households earning less than 60 per cent of the median income after housing costs. The group affected worst are the 85,000 children living with the greatest material hardship, meaning their families can’t afford fundamentals of living like important food groups.”

MSDs figures show that there is no income growth among the lowest income groups compared to growth in the higher income groups — which is evidence of growing income inequality.

According to the Household Incomes Report, around 100,000 (10 per cent) of children live in households reporting a major problem with dampness and mould. Around 140,000 (13 per cent) live with a major problem heating their homes.

Ms Maidaborn hopes all New Zealanders will be as alarmed as UNICEF New Zealand by the growing inequity laid bare in the MSD’s report.

“These findings are very timely, especially as Social Development Minister Anne Tolley travels to Geneva next week to report to the United Nations on the state of New Zealand’s children.”

Ms Maidaborn will also be traveling to Geneva as part of the delegation to observe this process.

Ms Maidaborn went on to say that New Zealand is currently failing to meet its commitment to ending poverty as outlined in the UN Sustainable Development Goals.

New Zealand adopted the UN’s Sustainable Development Goals in 2015, a commitment from government to achieving and sustaining income growth of the bottom 40 per cent at a rate higher than the national average.

ENDS

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