Barnardos welcomes increases to benefits in Budget 2021, but warns “we must not lose momentum”

Barnardos welcomes the increases to benefits announced yesterday in Budget 2021 as a step in the right direction, however warns that they will not be enough to lift all children and families out of poverty.

Barnardos CEO Mike Munnelly has acknowledged that yesterday’s Budget announcement included the biggest increases to benefits in a generation, and will go some way to tackle New Zealand’s growing income inequality. However, the increases will not make enough of a difference for those children and families living in the deepest poverty, especially as the full increases will not take effect until 2022.

Mr Munnelly said that “it’s disappointing not to see solutions to tackle the rising cost of rents, which are pushing many families into poverty”. Mr Munnelly says that unless the Government maintains their strong focus on tackling child poverty, the increases risk being swallowed by the rising cost of living before they come into effect next April.

Barnardos acknowledged other wins for children and families in Budget 2021, including the indexing of child care assistance to the average wage, extension of the Ka Ora, Ka Ako Healthy School Lunches Programme and the investment in Māori housing solutions, Māori education and the Māori Health Authority.

“We know that Māori and Pacific whānau experience worse health outcomes compared with other New Zealanders, and the Child Poverty Related Indicators Report 2019/20 showed that tamariki Māori are more likely to live in unaffordable homes, in households that run out of food often and regularly miss school. We are pleased to see significant investment in achieving more equitable outcomes for whānau Māori in the Budget.”

One big gap that Mr Munnelly identified was the lack of investment in closing the NGO social sector funding gap. “Social services like Barnardos provide essential support to children and families across New Zealand. During COVID we saw just how essential these services are to the well-being of our communities. So it’s disappointing to see no investment in the Budget to address the social sector funding gap, which sees essential social services underfunded by $630m every year.”

Barnardos continues to call for urgent investment in maternal mental health and for the Government to pull all the levers available to tackle New Zealand’s housing crisis, alongside its Five to Thrive partners Barnardos, Te Kahui Mana Ririki, and Whānau Āwhina Plunket.