Salvation Army policy analyst: Beneficiary crack down will not solve child poverty

The Salvation Army says punishing beneficiaries into working will not resolve worsening child poverty.

Policy Analyst Ana Ika says the government's approach around sanctioning beneficiaries to push them into employment is misguided.

"In theory, it sounds like it'll work but it's a simple solution for a complex issue," she says.

"A lot of people on jobseeker support are in complex situations.

"It's not as straightforward as putting a job in front of them and telling them to go to work."

Statistics NZ revealed in the year to June around 36,000 more children now live below a poverty line.

Child Poverty Reduction Minister Louise Upston released a statement saying these findings are why the coalition government is focused on reducing the cost of living and getting people working.

“Supporting parents into paid work and breaking the shackles of welfare dependency will be the cornerstone of this government’s strategy," Upston says.

Earlier in the week during a joint press conference with Prime Minister Christopher Luxon, Upston announced they would introduce sanctions such as a traffic light system that clarifies obligations and consequences to those on jobseeker support.

However, Ika reiterates the complexity of the situation saying: "It's a matter of putting people into meaningful employment."

Adding that because the Salvation Army predominantly works with the most vulnerable communities, they understand the intricacies involved.

"It needs a progressive approach that addresses the individual needs of those on jobseeker

"The current proposal around sanctioning them and ensuring that they're constantly looking for employment in our view is a harsh treatment."

Stats NZ's report uses three primary measures to determine poverty, the first two being those with less than 50 per cent of the average household equivalised disposable income before and after housing costs. Around 12 per cent of children account for the former, while 17.5 make up the latter.

The third measurement found 12.5 per cent of children live in material hardship which are households going without six or more of 17 essential items due to cost.

They also found Māori, Pacific and disabled children were worse off on all three primary measures compared to the total population.

Ika says these "significant" disparities are not new and that a targeted response is vital in resolving them.

"Looking at the child poverty targets for European and Asian children some of those targets have been met."

She says there also needs to be more focus on the bigger picture that impacts child poverty such as education levels, welfare, and social housing registers.

High rent has had families cut back on groceries to afford school uniforms alongside high schoolers working 20 to 50 hours on top of studies to support their families.

Pacific households are also on the bottom rung of average annual household equivalised disposable income before costs, followed by Māori.

Additionally, Ika says rent for poorer communities, which predominantly house Māori and Pacific peoples, rises faster and beyond income levels.

She says all of these factors contribute to why the families they support have little to no savings or financial buffers after the bills are paid.

"You can't just look at the child alone. I think we all know that it takes a village to raise a child.

"If we don't lift the entire village out of poverty then we don't lift any child out of poverty.

"It's about not only supporting children but also those families who are often a majority of them are on the solo parent benefit, dependent on welfare and live below the poverty line."