A new report from the Ministry of Social Development highlights the effects of the cost-of-living increase on households in New Zealand. The updated social cohesion report noted that economic changes are impacting families' security and could reinforce inequalities.
Two in five New Zealanders reported not having adequate income. While trends improved between 2018 and 2021, they declined again by 2023. Among Pacific peoples, the share saying they had enough or more than enough income rose from 28.2% in 2018 to 49.3% in 2021, before dropping to 46.4% in 2023. For Māori, adequacy rose from 50.3% in 2018 to 55.2% in 2021, and then fell to 53.9% in 2023. Europeans reported a decline from 73.2% in 2021 to 66% in 2023, while Asian respondents dropped from 55.7% to 51%. Among disabled people, only 44.2% reported adequate income in 2023, compared with 61.7% in 2021.
The survey also showed that households are cutting back on food. The share of reduced fresh fruit and vegetable purchases rose from 23.3% in 2018 to 47.7% in 2023. Two-thirds of Pacific people, 55% of Māori, and 59.3% of Asian people reported reducing purchases. More than 60% of single-parent families did the same.
Economist Shamubeel Eaqub said that a quarter of people reported going hungry sometimes or often because of a lack of money. "The big thing I found in the social cohesion work was that the biggest division was due to poverty/inequality. This is both short-term, worsened by the recession, and long-term." He said rising housing and necessity costs had added pressure, including in provincial areas that previously offered lower living costs.
Healthcare has also been affected. Almost 30% of New Zealanders postponed visits to the doctor in 2023 for financial reasons, compared with 25% in 2018 and 13.5% in 2014. Jake Lilley from Fincap said many households are running deficits when unexpected costs such as medical bills are included. "There is very likely a trade-off people are making between going to the doctor or paying a demanding debt collector, just as they are deciding whether to eat or heat," he said.
Green Party co-leader Marama Davidson described the data as evidence of deep wealth inequality that has left some unable to afford basic needs.
Source: RNZ News