Following Government’s recent recognition of the increased cost of living in Aotearoa New Zealand, NZCCSS joined with Fairer Future in calling on the Government to ensure New Zealanders dependent on income support are not left behind.
Following Government’s recent recognition of the increased cost of living in Aotearoa New Zealand, NZCCSS joined with Fairer Future in calling on the Government to ensure New Zealanders dependent on income support are not left behind.
In late March, the Fairer Future collaboration released new analysis that shows the ever-increasing pressure of spiralling costs on those who are worst off in Aotearoa New Zealand.
Fairer Future’s update of the Welfare Expert Advisory Group’s modelling on the level of income needed to meet basic costs shows the majority of people receiving income support still don’t have nearly enough to live on. This is even after the April 2022 income support increases. Families are still being locked in poverty.
In Fairer Future’s report, only four of the 13 of the household types modelled would be able to meet their core costs – rent, power, food, transport costs – in 2022. The shortfall of income from the modelling ranges from between $50 to $165 per week. The figures are bleaker for total costs, with those worst off short by $300 a week.
Out of the 13 households modelled:
- 9 would not be able to meet their core costs in 2022. The exceptions would be the households of a sole parent with one child receiving Best Start and/or sharing accommodation; and the households of a sole parent with three children receiving the income-related rent subsidy.
- 12 would not be able to meet their total costs in 2022. The one exception would be the household of a sole parent with one child receiving Best Start and sharing accommodation.
- Where debt is being repaid, even at a low level, none of the 13 model households could meet their total costs.
Households renting privately are doing it hardest. According to the modelling:
- a couple with three children would require an additional 29% income ($307 a week, $16,000 a year) to meet total costs.
- of the sole parent with three children would require an additional 23% income ($239 a week) to meet total costs.
- of the single adult living alone receiving Jobseeker due to a health condition or disability, would require an additional 28% income ($146 a week) to meet total costs.
Core costs include expenditure on budget items such as rent, power, food, clothing, transport costs, dental and medical costs.
Total costs additionally include expenditure on item such as sport/fitness activities, children’s/parents’ activities, one-off unplanned expenses, holidays.
Read the Fairer Future report here.