Hardship Indicators Fall

Ministry of Social Development, Wellington

Ministry of Social Development analysis shows an improvement in the indicators used to report on the finances of lower-income New Zealanders. Fewer New Zealanders are below the Social Report low-income thresholds and accommodation costs are falling as a proportion of income.

The Ministry today published the income-based findings from the Household Economic Survey (HES) for the year ended 30 June 2004 on its website.

Highlights from the incomes analysis are:

• The proportion of New Zealanders living in families with incomes less than 60% of the median income, adjusted for family size, housing costs and inflation since 1998, has fallen from 22% in 2001 to 19% in 2004.
• The proportion of dependent children below this threshold has fallen more substantially from 27% in 2001 to 21% in 2004.
• Between 2001 and 2004 the proportion of dependent children in sole-parent families below the 60% line fell from 61% to 43%.
• The proportion of low-income New Zealand households spending more than 30% of income on housing costs has also fallen, from 42% in 2001 to 35% in 2004.
• The proportion of children living in households with these high housing costs has also fallen, from 35% in 2001 to 29% in 2004.
• The indicator has also fallen sharply for households with at least one Māori adult (31% to 21%) and households with at least one Pacific adult (41% to 23%).
• The income inequality indicator increased slightly between 2001 and 2004, in line with a longer-term trend which began in the 1980s.
• Based on a different set of indicators as used by the OECD for international comparisons, New Zealand figures for relative income poverty and inequality showed no significant change for the period 2001 to 2004.

Marcel Lauzière, Deputy Chief Executive of the Ministry, said: ‘Taking The Social Report indicator, which we consider the more fundamental poverty measure, this is certainly a positive trend.’

The HES-based measures will be included in The Social Report 2005, due to be published in July. The Social Report provides information on the social health and wellbeing of New Zealand society. Indicators are used to measure levels of wellbeing, to monitor trends over time, and to make comparisons with other countries.

The next update of these HES-based low-income and inequality indicators is scheduled for 2008 and will be based on the 2006–2007 HES.

For further information: Bronwyn Saunders, Chief Media Advisor, ph 04 916 3447 or 029 916 3887 or Email Bronwyn Saunders.

Related Links

Read the Social Report Indicators for Low Incomes and Inequality report.

www.msd.govt.nz/work-areas/cross-sectoral-work/indicators-for-low-incomes-and-inequality.html

09 June 2005

Media Statement

Minister for Social Development

Contact person	Bronwyn Saunders
Postal address	Bronwyn Saunders Chief Media Advisor Ministry of Social Development
Phone	04 916 3447 or 029 916 3887
Email	bronwyn.saunders002@msd.govt.nz
Website address	http://www.msd.govt.nz/media-information/press-releases/2005/pr-2005-09-06.html
Submitted by	BD