Wellbeing Budget 2021

Securing
Our Recovery

What impact will these changes have on child poverty?

Increasing main benefits will have a material impact on the number of children in poverty and reduce some inequity experienced by Māori children

The increases to main benefits are projected to reduce the number of children in poverty for the year 2022/23. We expect these changes will have a larger impact on Māori children than for the population as a whole, although these estimates are subject to larger uncertainties than those for all children. In particular, we estimate that the proportion of Māori children in after-housing-costs poverty will fall and will be more comparable to the proportion for all children. The estimated changes for Pacific children are similar to the population as a whole, with much larger uncertainty due to the smaller sample size.

Table 4 - Projected impact of benefit increases on child poverty in 2022/23

Table 4 - Projected impact of benefit increases on child poverty in 2022/23
Income measure: After-housing-costs, fixed-line measure

Increasing main benefits will lift between 19,000 and 33,000 more children out of poverty onthe after-housing-costs measure in 2022/23.

This includes:

  • between 7,000 and 13,000 Māori children
  • between 1,000 and 5,000 Pacific children.

Without the benefit increases, the AHC50 rate for 2022/23 was projected to be… 

With the benefit increases, this is projected to reduce to…

Income measure: Before-housing-costs, moving-line measure

Increasing main benefits will lift between 12,000 and 28,000 more children out of poverty on the before-housing-costs measure in 2022/23.

This includes:

  • between 4,000 and 10,000 Māori children
  • between 0 and 8,000 Pacific children.

Without the benefit increases, the BHC50 rate for 2022/23 was projected to be… 

With the benefit increases, this is projected to reduce to…

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