Budget 2026 offers little relief for children in poverty

Save the Children New Zealand’s Advocacy Director Jacqui Southey welcomed the investment in education and health infrastructure that supports children, but noted the Budget provides little relief for families reliant on welfare. She says it is unlikely to ease the pressures faced by households and will do little to reduce current rates of child poverty.

"For families reliant on welfare who are already making difficult choices every week about whether to warm their homes, pay for fuel or put nutritious food on the table, sadly Budget 2026 does nothing to make life easier.

"Instead, initiatives such as lowering maximum payments of Temporary Additional Support (saving $196 million) or increasing social housing costs by around $30 a week will be particularly tough for many individuals and whānau."

Ms Southey says the announcement that around 9000 public service jobs are going to be cut, leaves many New Zealanders feeling increasingly uncertain of their job security. Rangatahi are also very worried about their futures and opportunities they will be able to access.

Says Ms Southey: "Youth are already bearing the brunt of New Zealand’s tough economic environment. The Youth Unemployment rate is the highest in almost a decade, at 15% nationally. Young people are feeling the consequences of lack of job opportunities, and those still in school have told us they are worried about what’s next for them when they finish their secondary education.

"The Fees Free incentive to encourage young people to take on tertiary education has been cut with those in university reeling at their sudden increase in cost and likely debt they hadn’t accounted for. Those considering university studies report being put off and potentially shut out of tertiary study due to the cost of the study, but also their living costs while they study with many students unable to access student allowances."

We do want to acknowledge the increased investment to support youth struggling to access jobs through vocational learning initiatives. Solutions to enable higher youth employment and opportunities are critically needed.

Ms Southey says it is positive to see the Government’s renewed investment in the Healthy School Lunches programme, breakfast programmes and community food support, at a time when families are increasingly struggling with the rising cost of living, especially with rising fuel costs from the war in the Middle East.

Save the Children would like to see longer term funding committed to ensure a sustainable and adequately funded Healthy School Lunches programme that is critical to tackling rising rates of food insecurity children and families are facing.