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It has been revealed that National has secretly lowered its child poverty target.
Without any publicity, it was released Notices in this Gazette Changes to three medium-term targets under the Child Poverty Reduction Act 2018.
Next year, the figure for households below 50 per cent of median disposable income before housing costs will rise to 12 per cent from 10 per cent previously.
The proportion of children in material hardship has increased from 9% to 11%.
After housing costs, the figure below 50 per cent of median disposable household income has actually fallen from 15 per cent to 14 per cent. Clearly, National believes its $3 billion tax cut for landlords will reduce rent levels.
Minister Louise Upston gave the only answer she knew: it was all Labour’s fault. The way she surreptitiously changed the goalposts suggested her conviction on this was somewhat shaky.
Analysis of historical achievements suggests that Labour has made incremental but significant progress until 2023, when inflation clearly puts pressure on household budgets.
Here is the chart. The 2024 numbers are the national targets.
National’s targets for material hardship and household disposable income before housing costs of less than 50 per cent were less ambitious than Labour’s actual targets by 2022.
The reason National has changed the target is obvious. It’s an acknowledgement that giving huge tax cuts to landlords has to pay off somehow.
Carmel Sepuloni has been a harsh critic of National’s reforms. This press release:
“Officials have warned the government that the number of children living in poverty could rise by 7,000 in four years as a result of these changes to the welfare index. The number of additional children is expected to reach 13,000 Will fall into poverty by 2028.
“There is no doubt that Social Development Minister Louise Upston is well aware of these figures but continues to press regardless. This despicable behaviour is something this Government is well known for.
“In the 2024 budget, the government introduced tax reforms but did nothing to ease cost of living pressures, knowing that 9,000 beneficiaries would be worse off, causing unemployment to continue to rise.
“Increasing wages and benefits is key to lifting children out of poverty. Labor helped 77,000 children out of poverty between the 2018 and 2023 budgets.
“It is the moral obligation of any good government to lift children out of poverty. This government clearly does not have that obligation,” said Carmel Sepuloni.
Tax cuts for landlords, and more children in poverty. That’s really statist.
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