About half of the country’s most vulnerable children living in material hardship will not benefit from the government’s latest relief addressing rising fuel prices.
Child Poverty Reduction Minister Louise Upston confirmed on Wednesday in an oral question in the House that the extra $50 per week in relief will be delivered through a boost to the In‑Work Tax Credit, which she said was “particularly focused on working households with children”. Upston noted that, according to Stats NZ figures, 48% of children in material hardship lived in working households.
By that measure, 52% of children experiencing material hardship are in households that do not work and are therefore not captured by the government’s targeted fuel relief. Upston said that Inland Revenue Department estimates show around 143,000 working families with dependent children would receive the full extra $50 a week.
Upston described the package as being introduced “at pace to provide immediate support in a fast‑moving situation,” adding that the support is designed to be timely, temporary, and targeted at those most in need.
Finance Minister Nicola Willis explained that the 52% figure refers to children typically living with parents on benefits and that benefit payments would be adjusted for inflation on April 1. She said beneficiaries and superannuitants are not eligible for the extra credit because their benefits are already scheduled for inflation adjustments. Willis also noted that the In‑Work Tax Credit is not normally adjusted for inflation, unlike many other benefits.
In announcing the relief package on Tuesday, Willis and Prime Minister Christopher Luxon acknowledged that people who are ineligible may be disappointed, but described the decision as responsible and said it would help avoid inflation pressures.
There are 18 questions used to measure material hardship. A family is classed as living in material hardship when they lack seven of the listed items or services, such as enduring the cold to reduce heating costs, delaying doctor visits to avoid GP fees, or being unable to afford sturdy shoes or warm blankets.
At the press conference, Luxon acknowledged the government could not ease the burden for everyone but emphasised that the relief package was designed to help the most “squeezed middle.”
Meanwhile, Willis said the extra payment would support working families in covering essentials like food and commuting to work or school. She recognised that some might consider it insufficient but stressed that the priority remained keeping inflation under control.