Call for urgent action on child poverty

By the Editorial Team · Thursday, August 27, 2026

A coalition of experts and researchers is calling on New Zealand politicians to adopt targeted policies to reduce the stagnant rates of child material hardship, which currently affect about 169,300 children. Their proposals emphasize raising wages, increasing benefits, and introducing universal tax credits to improve child welfare and prevent long-term social and economic costs.

A coalition of child poverty experts and researchers is urging New Zealand politicians to implement targeted measures to address the persistent rates of children living in material hardship. Despite ongoing government and sector efforts, the number of children affected remains largely unchanged in recent years, underscoring the need for urgent policy action.

Material hardship refers to families struggling to afford basic essentials such as shoes, heating, food, and clothing. Under legislation introduced in 2018 during former Prime Minister Dame Jacinda Ardern’s tenure, reducing child poverty became a formal governmental obligation. However, data show that progress has been limited. The annual Child Poverty Monitor reported that by June 2025, approximately 169,300 children—around 14.3% of the child population—were living in material hardship, a figure comparable to previous years and exceeding the population of Tauranga city.

The Child Poverty Action Group (CPAG) released a manifesto detailing policy recommendations aimed at significantly reducing child poverty. CPAG executive officer Lyn Amos described child poverty as a “political choice” driven by shortcomings across housing, health, disability, welfare, and tax systems. She emphasized that child poverty is not inevitable and called for a clear, cross-party commitment to immediate and meaningful interventions.

Among the key proposals are raising the minimum wage to match the living wage, boosting benefit payments while indexing them to wage growth or inflation, and replacing the current "Working for Families" scheme with a universal tax credit that is not contingent on parents’ employment or benefit status. CPAG points to periods between 2019 and 2022 when child poverty rates fell due to policy changes, indicating that government intervention can be effective if sustained political will exists.

The measures used to define material hardship rely on families’ inability to afford seven or more out of 18 essential items or services. Severe material hardship is classified when nine or more are unaffordable, highlighting the severity of deprivation experienced by affected households.

Experts caution that failing to address child poverty now carries significant long-term costs. Asher, a spokesperson associated with child welfare advocacy, highlighted that fiscal restraint aimed at cutting social spending does not reduce overall costs but rather shifts the financial burden onto hospitals, emergency housing, mental health, and justice systems, collectively costing billions of dollars annually. He argued that early investment in poverty prevention would ultimately be more cost-effective than managing its later consequences.

The call for urgent political action comes at a moment when child poverty figures have plateaued, signaling that current approaches may be insufficient to meet legislated reduction targets. The recommendations issued by CPAG aim to refocus government attention on structural reforms designed to alleviate hardship and improve outcomes for New Zealand’s children.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.