[New Zealand] Increasing NZ poverty figures no surprise to aid workers

from Stuff

A survey showing beneficiary families slipping even further behind everybody else comes as no surprise to organisations working with New Zealand's poor.

The release of the New Zealand Living Standards 2004 report by the Ministry of Social Development on Tuesday confirmed anecdotal evidence of hardships faced by their clients, Wellington Downtown City Mission (DCM) spokesman David Cross said.

"Our clients are predominantly non-custodial parents and many have significant, involuntary, deductions taken from their benefit for child support payments.

"However, because this money doesn't go directly to the other parent, clients often feel under pressure to contribute more cash to their ex-partner," he said.

Working for Families, the Government's targeted assistance package, gives support to those already working and therefore does not address those in gravest need, he said.

"Many DCM clients are unable to work because of health-related issues, including addictions, and therefore don't get further benefit assistance."

The New Zealand Living Standards 2004 report showed 76 per cent of the population had "fairly comfortable" to "very good" standards of living, a figure which had not changed significantly since a similar survey was carried out in 2000.

The eight per cent in the severe hardship category had increased from five per cent in 2000. This was attributed to a drop in the real income of beneficiary families with children and an increase in average incomes, widening the gap.

The Child Poverty Action Group said the report showed the living standards of New Zealand's poorest children were slipping dangerously.

"Our poorest families are being left behind," said spokeswoman Susan St John.

"The minimum wage is too low and family support has been eroded by inflation over the years."

Salvation Army social policy director Major Campbell Roberts said research in the last year had drawn attention to the declining rate of home ownership.

"Living standards research shows that households owning their own housing with or without a mortgage are more likely to have a higher standard of living than those renting."

The 2004 survey was the most comprehensive undertaken in New Zealand, with about 5000 families assessed on 40 indicators.

Social Development Minister David Benson-Pope said the report painted a largely positive picture.

The proportion of families experiencing some form of hardship had not increased, although he was concerned about the three per cent shift in the proportion of this group experiencing severe hardship.

However, Mr Benson-Pope said the Working for Families package – launched in 2004, after the research was collected – would have further improved living standards since the research was done.