Budget 2026 Child Poverty Failure Exposed – NZCCSS

Budget 2026 child poverty projections expose the emptiness of Nicola Willis’ promise to secure New Zealand’s future, with poverty targets slipping out of reach while vulnerable children and the organisations supporting them are left to carry the damage.

“Despite the theme of this year’s Budget being ‘Securing New Zealand’s Future’, there is no security in Budget 2026 for our most vulnerable children,” says New Zealand Council of Christian Social Services (NZCCSS) CEO Alicia Sudden.

“Budget 2026 shows no progress will be made in addressing child poverty over the next four years. Yet, evidence suggests that growing up in poverty can impact cognitive development, school achievement and adult employment, leading to a cycle of inequality that may span generations. Child poverty reduction should have been the top priority in Budget 2026 in order to actually secure New Zealand’s future.”

According to the Child Poverty Report released as part of Budget 2026, while there is a brief projected reduction in 2027, overall projections show no change in child poverty by 2030. The 2026/27 Budget year is even more significant as it coincides with the deadline for Child Poverty Third Intermediate Targets, set by the current Government in 2024. Based on the information released today, the targets for two out of three measures appear unlikely to be achieved.

“Budget 2026 continues a trend of too many years of inaction. NZCCSS member organisations are seeing this firsthand through large increases in demand for food, as well as increased complexity of need compounded by financial pressures.”

Budget 2026 does include further investment in children in our care system through the Dame Karen Poutasi response and recognising the increase in Reports of Concern to Oranga Tamariki.

“However, this is the ambulance at the bottom of the cliff. Recent research shows that income support in a child’s early years can reduce rates of maltreatment. Increasing incomes and reducing hardship can have very real long-term impacts on the wellbeing and broader productivity of New Zealand.”

“NZCCSS is calling on political leaders to show justice and compassion by taking urgent action to lift children out of poverty,” says Sudden.

NZCCSS’s Free From Poverty campaign calls for an increase in core benefit levels and the indexing of benefits to align with the greater of either wage growth or CPI, along with bolder changes to Working for Families to expand its reach and impact.

“Hardship and poverty are not inevitable. We can make choices to ensure a future where no child or adult goes hungry. We urge the Government to invest in policies that will lead to real change that frees New Zealanders from poverty,” says Sudden.