Which is here.
16 Poverty rates for children in beneficiary families are consistently around 65-75%, much higher than for children in families with at least one adult in full-time employment (9% in 2011).
- Since the benefit cuts in 1991, 65-75% of children in beneficiary families have been identified as ‘poor’ in each HES. The figure was close to 70% for 2004 to 2009, and 65% in 2011.
- For beneficiary families with children, AHC incomes from main benefits, the Family Tax Credit and the Accommodation Supplement are almost always below the AHC 60% fixed line threshold.
- Why is the reported poverty rate for beneficiary children not therefore 100%? There are typically 20 to 30% of beneficiary children living in households in which over the 12 months before the HES interview there is market income as well, either from their parent(s) or from other employed adults. This extra income is enough to take total household income ‘over the line’.
- In June 2011 there were 234,000 children in beneficiary families (22% of all dependent children). Around 25% of children live in households in which there is no adult in full-time employment.
17 Nevertheless, on average from 2007 to 2011, two in five poor children (40%) were from households where at least one adult was in full-time employment or was self-employed, down from around one in two (50%) before WFF (2004).
- The WFF package had little impact on poverty rates for children in beneficiary families (around 70% from 2004 to 2009), but halved child poverty rates for those in working families (21% in 2004 to 11% in 2007 and close to the same since then).
- Because there are many more children in working families than in workless or beneficiary families, the proportion of poor children who come from working families is much higher than the poverty rates themselves at first sight suggest.
- On average from 2007 to 2011, two in five poor children came from working families where at least one adult was in full-time employment or was self-employed, down from just over one in two before WFF.
- The New Zealand proportion is not unusual. In OECD countries (on average), around half of poor children come from working families.
19 Poverty rates for Maori and Pacific children are consistently higher than for European/Pakeha children: on average from 2009 to 2011, just under half of poor children were Maori or Pacific.
- On average over 2007 to 2011, around one in six European/Pakeha children lived in poor households, one in four Pacific children, and one in three Maori children (double the rate for European/Pakeha children).
- The higher poverty rate for Maori children is consistent with the relatively high proportion of Maori children living in sole-parent beneficiary families and households (eg around 43% of DPB recipients were Maori in the 2007 to 2011 period).
- On average from 2009 to 2011, just under half (47%) of poor children were Maori or Pacific: for children overall, around 34% were Maori or Pacific.
- The sample size is too small to allow more precise poverty rates to be given for the smaller ethnic groupings.