2025 Budget shows need for greater ambition on Child Poverty reduction targets

While The Salvation Army recognises there are positive steps in the 2025 Budget announcement, there is a lack of ambition to effectively meet Child Poverty reduction targets. For some sectors such as Housing, Food Security and Education, the Budget shows promise, but we emphasise that the overall impact on Child Poverty and material hardship remains limited.

Dr Bonnie Robinson, Director of The Salvation Army’s Social Policy and Parliamentary Unit, says:

“This Budget shows a government content with maintaining the status quo in terms of child poverty. But when the status quo means children living in cars and families relying on foodbanks, that is simply not good enough. At the same time, there are encouraging signs. The investment in housing and the continued support for foodbanks are steps in the right direction. We hope this is just the start of a stronger commitment to lifting families out of poverty.”

Key Points:

1. Child Poverty: While there are small increases in assistance through Working for Families and health and education programmes, these measures are expected to maintain current poverty levels. Thousands of children will continue to suffer from the impacts of poverty, including food insecurity. Greater ambition and larger programmes are needed to rapidly reduce poverty. Immediate action is required to lift the 156,000 children living in material hardship out of poverty.
2. Food Hardship: We acknowledge the continued funding for foodbanks for another 12 months, which prevents closures and ensures people have access to food. However, this alone does not address the ongoing demand for food security. We seek to collaborate with the government on a strategy to ensure all New Zealanders can reliably put food on the table every day.
3. Housing: We appreciate the government's commitment to building 550 new houses in Auckland and the flexible funding for community housing providers. It's also positive to see potential fixes for the Accommodation Supplement areas. However, we are concerned about the reduced role of Kainga Ora in building social housing. With 20 to 30 thousand houses needed in the next decade, both community and government efforts are essential to provide affordable rentals and address housing cost poverty and homelessness. Additionally, we are worried about the changes to emergency housing criteria and the rising number of homeless individuals.
4. Social Investment: We are always open to new ways of serving our whānau and communities and anything that puts them at the centre of decision-making and services is welcome. We look forward to working with the Social Investment agency to develop their work. We do note, however, that the $275m is a very small amount of money to deal with the very large social issues and levels of poverty and hardship that New Zealand is facing. 
5. Other Areas:
   1. While increased funding for Māori education is positive, there are concerns about whether it will effectively address the unique needs of Māori students and close the achievement gap. Additionally, climate change funding for Māori-led initiatives has been cut by 33%, now at $2.6 million per annum. The Salvation Army, working with over 40% Māori whānau, sees the unequal impacts of rising hardship on tangata whenua. Effective change requires dedicated funding for kaupapa Māori approaches. While there are positives for Māori in the budget, caution is needed to ensure these measures effectively target and address issues impacting Māori communities.
   2. This budget lacks investment in proven crime prevention methods like community-based rehabilitation and reintegration. Instead of spending almost $400 million on more prisons, investing in these programmes could significantly reduce crime and recidivism.
   3. Addiction is strongly related to mental health, and there appears to be no new direct investment in this area despite high demand. 

The Salvation Army encourages the government to take further action to invest in the growth and wellbeing of our nation. This includes:

• Ensuring every household raising children has access to an adequate income.
• Guaranteeing food security for all children.
• Providing clear pathways to stable employment that pays a living wage.
• Supporting the social infrastructure that families rely on, including healthcare, education, and mental health services.

The Salvation Army is committed to working with the government on social investment initiatives and emphasises the importance of immediate action to address the urgent needs of children and families today.