Our benefit rates are so low compared to the cost of living, that many of our tamariki in are living in material hardship. How many is many? In 2020/2021 125,700 (11%) tamariki were living in material hardship in Aotearoa New Zealand and going without basic essentials.[1]
Material hardship means being unable to afford six or more things from the list of 17 everyday essentials and services. The list of 17 items used to determine material hardship by the Child Poverty Monitor is:
Enforced lack of essentials (because of cost)
1. Do not have a meal with meat, fish or chicken (or vegetarian equivalent) at least each second day
2. Do not have two pairs of shoes in good repair and suitable for everyday use
3. Do not have suitable clothes for important or special occasions
4. Do not give presents for family and friends on special occasions
5. Do not have home contents insurance
Economised, cut back or delayed purchases ‘a lot’ because money was needed for other essentials
6. Went without fresh fruit and vegetables
7. Bought cheaper cuts of meat or bought less than would have liked
8. Postponed visits to the doctor
9. Postponed visits to the dentist
10. Did without or cut back on trips to the shops or other local places
11. Put up with being cold (to keep costs down)
12. Delayed repairing or replacing broken or damaged appliances
Restrictions
13. Feel ‘very limited’ by money available when thinking about purchasing clothes or shoes for self
14. Could not pay an unexpected and unavoidable bill of $500 within a month without borrowing
Financial stress and vulnerability
In arrears more than once in last 12 months, because of shortage of cash at the time, not through forgetting:
15. Rates, electricity, water
16. Vehicle registration, insurance or warrant of fitness
17. Borrowed from friends or family more than once in last 12 months to cover everyday living expenses[2]
If a household scores nine or more of the above 17 measures, they are defined as being in severe material hardship.
The other measure the Child Poverty Monitor uses is income poverty. An adequate disposable household income enables tamariki and whānau to participate in society and save for larger cost items. The income poverty rate, after housing costs are deducted, for tamariki Māori is 21.1% and for Pacific children it is 21%, disabled children it is 22.5%, while the income poverty rate for European children is 14.8%.[3]
If you a tamariki living in a household that is struggling for money, the first thing that whānau decide to save money on is a trip to the dentist, then it is spending on clothes and shoes, and next is cutting back on meat.[4] Whānau have to make really hard decisions and next to go is participation in their community as they are no longer able to make trips to local places. If they could afford insurance, that is the next to go, and then whānau may find they need to borrow to meet their basic living costs.
Tamariki are well aware of the harsh realities of living in poverty and the whakama (shame and embarrassment) that comes along with it.
“Not being able to afford things - like sports or activities. People try to help us to make it easier but it's shameful.” Child from Gisborne[5]
“I’m always hungry. It’s shame as to say you don’t have kai, so I just act full. The Kidscan [free lunch] would be good but you have to sign up and everybody knows. So nah.”
Student in alternative education, Māori[6]
The reality for tamariki and rangatahi living in material hardship is having to decline birthday party invitations because they can’t afford a present and are never being able to host their own parties.
One of the things we can do to end child poverty is to ensure parents/caregivers have enough income to provide for their tamariki. The common theme in the feedback from children and young people to the Office of the Children’s Commissioner was that “everyone should have their basic needs met.” One mokopuna said,
“To have the basics plus a little bit more.”[7]
Another said,
“I think that it is incredibly important that families have enough money to be able to pay for basic things like food, clothing, bills and other necessities. When children go to school hungry or without enough warm clothing it impacts their ability to learn, communicate and participate in class. Without being able to do these basic things, it can impact their future career, and most importantly their wellbeing.”
15-year-old New Zealand European girl[8]
The Methodist Alliance working group campaigning to increase benefit and abatement thresholds acknowledges that the current benefit levels are too low to support people’s basic needs. Benefit levels have not kept pace with the rising costs of rent, food, transport and medical care. This working group continues to advocate for urgent change to our welfare and tax systems. They are working with other church and community agencies in this mahi.
If you would like to join the campaign workgroup, please contact me.
Carol Barron, National Coordinator
03 375 0512 | 027 561 9164 | Carol@MethodistAlliance.org.nz
[1] https://www.stats.govt.nz/news/child-poverty-statistics-show-all-measures-trending-downwards-over-the-last-three-years [2] Stats NZ. 2019. Measuring child poverty: Material hardship. https://www.stats.govt.nz/methods/measuring-child-poverty-material-hardship [3] https://www.childpoverty.org.nz/measures/income [4] https://www.stuff.co.nz/business/money/111750300/cascade-of-want-the-essentials-poor-families-give-up-first [5] https://nzchildren.co.nz/ [6] Ibid [7] https://nzchildren.co.nz/#_voices [8] Ibid