The child poverty target changed because Labour failed miserably

Radio NZ reports:

In 2021 the government set targets of reducing the number of children experiencing material hardship from 13.3 down to 9 percent by 2023/24. The government’s new target for 2026/27 is 11 percent.

Yes Labour,. set a target, but were they on track to meet it?

Let’s look at the various targets announced over time for proportion of children in material hardship:

  • May 19: 10.3% by 20/21 and 6.0% by 27/28
  • Jun 21: 9.0% by 23/24
  • Jun 24: 11.0% by 26/27

But how did they actually do?

First thing to note is by far the largest drop occurred from 2012/13 to 2015/16 – a massive 6% in three years.

The rate was 13.3% when Labour in 2019 set a three year target of 10.3%. They got 11.0%, so got around 3/4 of the way to their goal.

In 2021 the rate was 11.5% and they set a goal for 2024 of 9% or a 2.5% reduction. They delivered a 1% increase by 2023 so you see why the target is now unachievable. This is what happens when inflation gets out of control.

Labour’s 10 years target was from 13.3% to 6% so a 0.73% reduction a year. After five years they delivered a 0.16% a year reduction or 0.8% after five years instead of the targeted 3.7%.

So National inherited a material hardship rate of 12.5% for 22/23 and likely even higher for 23/24, so a target of 11.0% by 26/27 is still a significant challenge which will require a reduction of 0.5% a year, which is six times more than what Labour achieved.


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