Social Services slam Budget for child poverty inaction

By CathNews New Zealand

May 29th, 2026

(Russell Street/ Wikimedia Commons)

The New Zealand Council of Christian Social Services says the Government’s 2026 Budget doesn’t help the nation's most vulnerable children at a time when that should be an urgent priority.

“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,” NZCCSS chief executive Alicia Sudden said after Finance Minister Nicola Willis delivered the Budget on May 28.

“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,” Ms Sudden said.

“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.

The NZCCSS, of which Catholic Social Services is a foundation member, said Budget 2026 continues a trend of too many years of inaction. NZCCSS member organisations are seeing the results firsthand through large increases in demand for food, as well as increased complexity of need compounded by financial pressures.

The council noted that Budget 2026 does include further investment in children in the 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,” Ms Sudden said. “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.”

FULL STORY

Budget fails to secure future for children living in poverty (New Zealand Council of Christian Social Services)

A responsible Budget to secure NZ’s future (Beehive)

Budget 2026 doesn’t move the dial on child poverty rates (Child Poverty Action Group)