Hon Paula Bennett

Minister for Social Development

8 July 2014 Media Statement

Child poverty reducing

Social Development Minister Paula Bennett has welcomed the latest Household Incomes Report showing child poverty has fallen three percent.

“Today’s release shows we are making progress. From a survey conducted between July 2012 and June 2013, findings show that median household incomes rose four percent in real terms in the two years since July 2011,” says Mrs Bennett.

“While the gains since 2011 were shared reasonably evenly across incomes, the global recession in the two years previous impacted slightly more on lower incomes. The report also shows that trend-line inequality has remained flat.

“This latest research shows New Zealand households have bounced back. In the past year 84,000 more jobs have been added to the New Zealand economy, 8,600 sole parents have come off benefit in the past year and there are nearly 30,000 fewer children in benefit dependent households compared to two years ago.

“Nevertheless the Government recognises more needs to be done to support our most vulnerable families.

“Which is why, on top of free breakfasts to all schools that want it, a social worker in all decile 1-3 schools and warming up nearly 300,000 homes, we are in this year’s budget investing nearly $500 million over four years in services and support for families.

Initiatives include:

• $171.8 million to boost the paid parental leave scheme. Paid leave will be extended by four weeks – starting with a two-week extension from 1 April 2015, and another two weeks from 1 April 2016. The eligibility of paid parental leave will also be expanded to include caregivers other than parents (for example, permanent guardians), and to extend payments to people in less-regular work or who recently changed jobs.

• $42.3 million to increase the parental tax credit from $150 a week to $220 a week, and increase the entitlement from eight weeks to 10 weeks, from 1 April 2015.

• $90 million to enable GPs to offer free doctors’ visits and prescriptions for children under the age of 13, starting on 1 July 2015. Over 400,000 more children will benefit by including six- to 12-year-olds.

• An additional $155.7 million to help early childhood centres remain affordable, meet demand pressures and increase participation towards the Government’s 98 per cent target.

• $33.2 million in 2014/15 to help vulnerable children, including eight new children’s teams around the country to identify and work with at-risk children and their families, to screen people who work with children, and to support children in care.

“Recognising that housing costs are a significant issue for low income families, the Government is investing $95.7 million of new money into social housing over the next four years.

“There’s more financial assistance to help people into private rentals to free up social housing for those who need it most, there’s new funding to grow more social housing in partnership with NGOs, and easier social housing assessment processes with the transfer of responsibility to Work and Income

“This Government is determined to improve the lives of children in low income families by targeting resources to services and support that are guaranteed to make a difference for those children,” says Mrs Bennett.

The Household Incomes Report for the 2012 calendar year can be found at: www.msd.govt.nz

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