Child Poverty Action Group says Budget 2026 fails to deliver the bold action needed to reduce child poverty, warning current Government policies are unlikely to meet the legislated target of halving child poverty by 2028.
The criticism comes as Treasury forecasts indicate little movement in key child poverty measures over the coming years, despite the Government highlighting targeted support initiatives and wider economic reforms in this year’s Budget.
Child Poverty Action Group spokesperson Aaron Hendry says the Budget does not address the underlying drivers of hardship facing thousands of families, particularly those reliant on benefits and public housing.
Hendry argues that one of the most significant gaps remains the continued exclusion of children in benefit-dependent households from the In-Work Tax Credit. The payment is available to many working families but remains inaccessible to children whose parents are receiving a main benefit, creating what advocates describe as a two-tier support system.
Anti-poverty campaigners have long argued that a child’s access to financial support should not depend on the employment status of their parents, particularly during periods of economic hardship and rising living costs.
Housing costs are also emerging as a major concern. Advocates warn that increases in rents for public housing tenants will place further pressure on already stretched household budgets, reducing the money available for essentials such as food, electricity, transport and school-related expenses.
Recent housing policy changes have prompted concerns that low-income families could face greater financial strain at a time when inflation and everyday living costs continue to affect household finances.
Child poverty organisations say housing affordability remains one of the strongest predictors of hardship, with many whānau spending a disproportionate share of their income on accommodation costs.
The concerns are particularly significant for Māori and Pasifika communities, who continue to experience higher rates of child poverty, housing insecurity and material hardship than the national average.
Advocates say Māori tamariki remain disproportionately represented in poverty statistics, making targeted investment essential if New Zealand is serious about closing long-standing equity gaps.
Child Poverty Action Group is calling for a range of policy changes, including extending the In-Work Tax Credit to all low-income children, increasing benefit adequacy, strengthening housing affordability measures and investing more heavily in programmes that directly support vulnerable whānau.
The organisation argues that meaningful progress requires policies focused on children’s wellbeing rather than employment-based eligibility criteria.
While the Government maintains that Budget 2026 strikes a balance between fiscal responsibility and targeted support, critics say the measures announced fall short of what is needed to achieve transformational change.
With the 2028 child poverty target approaching, pressure is likely to intensify on policymakers to demonstrate how current settings will deliver measurable reductions in hardship for New Zealand’s most vulnerable children.
