Households Struggling: New Report Reveals Financial Shortfalls

Households relying solely on JobSeeker Support or NZ Super are facing significant financial challenges, according to a recent report from Ka Mākona, part of the Zero Hunger Collective. The study reveals that these families must spend more each week than they receive, highlighting a growing crisis in financial stability across New Zealand.

The annual report, which now includes older adults in its analysis, noted that 27 percent of children live in food-insecure households. This year, the report expanded its scope to model the financial situations of various household types, including older individuals living alone, older couples, single adults, sole parents with children, and two-parent households. The calculations examined weekly incomes alongside essential expenses for housing, food, transportation, and utilities.

Housing costs were assessed based on typical rents for different living arrangements, such as a shared flat for a single adult and a one-bedroom unit for an older person. For families, the report considered three-bedroom rentals. The findings indicate a stark reality: many households are trapped in a continuous struggle to cover basic living costs.

The report states, “2025 has seen continued escalation in costs of living, as income increases failed to keep pace with inflation.” This situation has been exacerbated by economic recession, job losses, and government policies that have left many families in precarious financial situations.

Researcher Jennie Sim highlighted that all households analyzed that receive JobSeeker Support and NZ Super reported a weekly deficit. A single adult on JobSeeker Support averaged a shortfall of $107 each week, while a solo parent with two children faced a deficit of $21.42. Two-parent households with two children encountered a weekly deficit of $111.15. Those on NZ Super also faced challenges, with single individuals short by $17.67 and couples by $35.85.

In Auckland, a sole parent on JobSeeker was one of the few exceptions, not reporting a deficit. Sim emphasized that the rising cost of housing is a critical issue affecting many families. “If rents came down, people would have more to allocate to other fixed costs and food,” Sim explained. She pointed out that in Christchurch, rents for a three-bedroom family home have increased by $160 over five years, a rise that far outpaces income growth.

The report also sheds light on the financial challenges faced by women, particularly in fields like teaching and nursing, which often require unpaid placements. Sim noted that these unpaid positions create financial hardship, contributing to food insecurity for students who are also managing fees and housing costs. “Unpaid placements and low starting wages in these professions cause lifelong financial setbacks for women,” she stated. Research indicates that for the first 14 to 28 years of their careers, women in these fields earn less cumulatively than police officers, who receive training pay and have no student debt.

Funding cuts to community food organizations and budget advisory services have further exacerbated the situation, resulting in some frontline support agencies shutting their doors once funding reserves were depleted. The remaining organizations are strained, attempting to meet increased demand with limited resources. Many report a significant rise in older individuals and two-income families seeking assistance over the past year.

The chief executive of the New Zealand Food Network, Gavin Findlay, noted that requests for food assistance have not declined as anticipated. “It’s not trending down as we thought it might have been,” he said, adding that the elevated demand persists, likely due to rising living costs. “More than half a million people a month access some form of food support,” Findlay stated, emphasizing that this issue affects a broad range of individuals beyond just low-income households.

Financial mentor David Verry remarked that while falling interest rates provide some relief for homeowners with mortgages, others are not experiencing similar benefits. “The cessation of Winter Energy Payments for all beneficiaries, including pensioners, has made things tougher,” he explained. Verry indicated that the ability for individuals to supplement their income through part-time work remains limited.

As the financial landscape continues to evolve, many households across New Zealand are left grappling with the reality of insufficient income to meet their basic needs. The findings from the Zero Hunger Collective serve as a critical reminder of the ongoing challenges faced by vulnerable populations and the urgent need for policy interventions to address these pressing issues.