Your Vote 2020: Impacts of poverty and unemployment exacerbated by Covid-19, calls for ‘urgent’ change

With 70,000 more children expected to plunge into poverty as a result of the pandemic.

This election, 1 NEWS looks at the top five issues New Zealanders care about the most. This week we take a look at child poverty and unemployment in Aotearoa, and what those working to create systemic change want from the next government.

It’s too early to tell what the full impact of Covid-19 looks like when it comes to poverty and unemployment rates in New Zealand, but some working at the coalface predict it will have disastrous effects for many families.

They say the pandemic has made it more urgent than ever before for the next government to create real change for those living in poverty.

The latest statistics released by Stats NZ in February 2020, before the pandemic hit, showed the number of New Zealand children living in relative poverty was one in five or 235,400, after housing costs had been deducted.

In August, following the Covid-19 lockdown, it was announced 11,000 Kiwis had already lost their jobs as a result of the pandemic. A Government document also released in August revealed a further 500,000 New Zealanders could become more vulnerable to food insecurity , because of the virus.

Unemployment is also expected to peak at 7.8 per cent in the March 2022 quarter, two per cent lower than forecast in May 2020.

Though official statistics around poverty post pandemic are not yet available, Claire Achmad, general manager of advocacy at Barnardos, says it has had a “significant impact” for many families living below the breadline.

She says the issues were made most apparent to the organisation during the country’s nationwide Level 4 lockdown, or rāhui.

Basic needs already not being met exacerbated by Covid-19 lockdown

“We saw in our work at Barnardos directly with children and families and whānau through the rāhui the significant impact and the need that exists within our communities around food. The basics of life,” says Achmad.

“We have such high rates of food insecurity in Aotearoa and the rāhui has really exacerbated that. Also costs around housing and also rental conditions, we know that some landlords made things really difficult for people over the Covid period.”

Achmad says job insecurity has also been rife, with many families losing sources of income as a result.

“The stresses that employment has put on families are really significant. Prior to the pandemic we know that many low-income families had parents or a single parent who were holding down two or three jobs and still finding it hard to get by."

She says some families even struggled to stay connected during the lockdown because of the costs associated with technology.

“The families and whānau who we work with whose digital connectivity is something that they can’t take for granted, for example we had to support some of them to access phone data so they could stay in touch.”

A failure of successive governments

Though Covid-19 has worsened the situation, Achmad says the issue of poverty, especially among children, is nothing new.

"The situation that we have in Aotearoa when it comes to family poverty is a failure of successive governments to take the problem seriously and to address wealth inequality, income adequacy and a fair and equal welfare system," says Achmad.

"The pandemic itself exacerbates some of the impacts of poverty which makes it even more pressing and urgent for us to see real change when it comes to the poverty and inequality that's facing our country."

Achmad says there have been some good initiatives come from the current Government, along with Jacinda Ardern's commitment to addressing child poverty in Aotearoa, but it needs to continue with whoever is the next Prime Minister.

"It has to start from the top, and it has to be a whole of Government approach to addressing poverty."

She says the next Government should commit to getting the fundamental basics right and improve the living situation of children and whānau in New Zealand.

Fears new group of New Zealanders will fall into financial hardship because of Covid-19

The Salvation Army is concerned there will be a sudden drop into poverty for many New Zealanders as the financial fallout of the pandemic continues.

Paul Barber, senior policy analyst for the Salvation Army, fears the winter relief payments ending, along with the Covid-19 wage subsidy, will impact negatively on many communities.

Over one million New Zealanders received extra money from the Government in the initial wage subsidy payout, with a further 437,000 signing up for the extended wage subsidy in mid-July.

Barber says further action is needed to be taken to cope with the fallout from the assistance ending.

"The loss of current and extra assistance will exacerbate the issues that already exist," says Barber.

"The crisis has made it clear that more needs to be done to support the people of New Zealand. The number of people on benefits is going to be high, many will need it for a year or more and financial pressures may evolve."

Housing, income adequacy, and the 'five asks'

A collective of organisations are calling for urgent action from the next government to deal with child and family poverty in the next term.

Five to Thrive includes Barnardos, Save the Children, Te Kāhui Mana Ririki and Whānau Āwhina Plunket.

The group has put together 'five asks' for the next government to achieve in the fight against child and family poverty in New Zealand.

At the top of the list for Jacqui Southey of Save the Children is housing and income adequacy. She says the issues are inextricably linked.

"A home provides not only a base for our whānau and tamariki to live, but to thrive. If our families are to do well, it’s essential our families have better access to affordable and healthy housing.

"Having an affordable and healthy home means you will be more secure so less stressed and can put greater focus into work, education and parenting."

She says housing is a basic right which needs to be made right "immediately".

"That’s why Save the Children and our Five To Thrive partners are calling on politicians to urgently address the housing crisis, alongside four other key asks for children in our Five to Thrive campaign."

Achmad says the fact is that a house or a home is much more to a child than just a roof and four walls.

"A home is a place where a child can and should feel safe, should be able to grow up in that atmosphere of love and also its a place where a child's identity is forged."

"If a household is having to spend such significant amounts on housing and then not having enough left over to address those other basic needs, that's a situation that no child in New Zealand should be growing up in - it's inexcusable."

The other four asks are realising the potential of whānau Māori and reducing inequities, investing in children’s early years, lifting children and their families out of poverty, and mental health support for every child and new parent that needs it.

"These five areas need to be addressed urgently and getting them right is going to lead to fair, equal and just childhoods in New Zealand," says Achmad.

"When New Zealanders vote this October they have the chance to choose to prioritise children. Addressing the issues of poverty, inequity and housing and the mental health crisis, these are the things that can make a huge difference and also it's an opportunity to make change for our tamariki and whānau Māori.

"Right now their full potential isn't being realised in Aotearoa and that has an impact on all of us."

POLITICAL PARTY POLICIES FOR WELFARE, UNEMPLOYMENT

Labour Party: Modernise and overhaul the welfare system by supporting Kiwis into sustainable work, income adequacy so families dependent on the benefit are not living in poverty. Continue to create jobs and job opportunities for those most at risk in the labour market. Read more of their policy here.

National Party: Getting Kiwis working and off the welfare system. Work with incentives for businesses to hire more staff, retrain and reskill people who have lost jobs. Have a welfare system that’s focused on supporting and encouraging people to get back to work.

NZ First Party: Support Kiwis back into employment using the welfare system as a safety net. Making sure the disabled wanting to secure work have the support they need for employment and support is in place for their employees. Read their full policy here.

Green Party: Implement the Poverty Action Plan which would include a guaranteed minimum income, universal child benefit, simplified family support credit, additional support for a single parent, changes to abatement and relationship rules and introduce a one per cent wealth tax. Read their full policy here.

ACT Party: Deal with long-term dependency on the welfare system. Bring in a new and fairer unemployment insurance scheme which pays out based on input. Read their full policy here.

Māori Party: To lift whānau out of poverty by raising minimum wage to $25, doubling baseline benefit levels, individualising benefits and cancel income support related debt. Read their full policy here.

The Opportunity Party: To bring in a universal basic income to create a modern, simple, and fair tax and welfare system. Children would receive a basic income of $2,080 while adults will receive $13,000 basic income. A tax of 33 per cent on all income from all sources for all entities would be introduced. Read their full policy here.

New Conservatives: To give restore the requirement for Kiwis to be actively seeking work in order to claim the Job Seeker Benefit. Beneficiaries need to attend a work centre regularly to ensure people are actively seeking employment or further training. Read their full policy here.

SHARE ME

More Stories