The Times Australia
The Times News

.
The Times Real Estate

.

NZ's second 'Well-being Budget' must deliver for the families that sacrificed most during the pandemic

  • Written by Kate C. Prickett, Director of the Roy McKenzie Centre for the Study of Families and Children, Te Herenga Waka — Victoria University of Wellington
NZ's second 'Well-being Budget' must deliver for the families that sacrificed most during the pandemic

Finance Minister Grant Robertson’s promise of a “recovery and well-being budget[1]” is an apt recognition of the current social and economic reality.

Although life feels relatively normal in New Zealand compared with the havoc COVID-19 continues to wreak internationally, the cost of our policy response and the impact of the pandemic recession haven’t been shared equally.

While detail is still scarce, Robertson has made it clear[2] child well-being will be a key focus of this year’s budget. Indeed, it will be a priority for the new Implementation Unit[3] being established to oversee government-wide delivery of key initiatives.

The emphasis on children and their families is well placed: child poverty levels barely budged in the year prior to the pandemic. Moreover, the first Child and Youth Well-being Strategy Annual Report[4], released last week, highlighted[5] the lack of well-being experienced by a large group of children.

And we know the pandemic hasn’t been kind to families. Research[6] we conducted last year showed families with children – particularly low-income families[7] – were more likely to have lost jobs or income during the nationwide lockdown in March-April 2020 compared with homes without children.

Majority of low-income working families yet to recover

Following our lockdown data collection, we went back to our survey respondents in March this year to see how people were doing a year on from lockdown.

What we found was predictable, but no less striking. Only 45% of those low-income families with children (pre-pandemic household incomes of NZ$50,000 or less per year) with at least one parent working prior to lockdown had those same parents still employed and bringing home the same or greater weekly pay one year later.

Read more: Why NZ’s public sector wage freeze ignores the lessons of history[8]

More than 20% of those families had a parent who was employed pre-pandemic but looking for a job in March 2021, while 8% percent had a working parent drop out of the labour market altogether.

A further 26% were still working but bringing home less pay — either from a wage cut, taking on a lower-paid job, or working fewer hours.

While income loss was still prevalent across the income spectrum, higher-income families were far more likely to report all the working parents in the home had either maintained or increased their income. They were also far less likely to have previously employed parents still looking for work.

Mothers hit hardest

Although New Zealand’s pandemic policy response likely saved working mothers from the more severe impacts on women’s employment seen internationally[9], the recovery has been slower for Kiwi mothers.

Of those in our sample who were employed prior to the lockdown, only 65% of all mothers, and 60% of single mothers, reported stable or increased weekly take-home pay a year later. This compares to 71% of fathers.

Read more: NZ Budget 2021: we need the arts to live, but artists need to earn a living[10]

Close to 20% of single mothers who were working pre-pandemic reported being unemployed and searching for a job one year on (compared to 7.5% of mothers and 4.3% of fathers generally). And 10% of pre-pandemic employed mothers with partners said they were no longer working or looking for work at all.

The fact no single mothers who were employed pre-pandemic were classified as “not in the labour force” by March 2021 is probably related to our survey’s smaller sample size. But the finding is indicative of the precarious position single mothers hold: not working is not an option.

Economic recovery and well-being

Economic recovery and the population’s well-being go hand in hand: economic and financial precariousness and stress affect our health and well-being.

Parents in our sample who were unemployed a year on from lockdown were two to four times more likely to report feeling depressed throughout the day and much less likely to report positive feelings of enjoyment and happiness.

Unsurprisingly, those parents who were employed in March 2021, and had similar or better incomes, were the least likely to report feeling depressed or worried.

Recovery should recognise those who sacrificed most

Budget 2021 is a chance to recognise and rectify the unequal burden the COVID-19 pandemic has placed on families with children, and low-income families specifically.

Policies and programs that redistribute money to low-income families and increase their bottom line will be essential. This should include indexing Working For Families[11] payments to wage growth and disentangling tax credits from work and benefits. That way, all low-income families will receive the financial support they need.

Also essential will be combating those expenses – notably housing and childcare – that eat away at family incomes and make New Zealand one of the least affordable[12] places to live.

Read more: If New Zealand can radically reform its health system, why not do the same for welfare?[13]

Policies that support working mothers, such as diversifying “shovel ready” state-supported jobs and further shoring up the early childcare sector[14], are essential for helping women back to work.

And while low-income working families have experienced a slower economic recovery, it’s worse still for those unable to work and relying on welfare. They are unlikely to have a fair shot at joining in the recovery.

Indeed, the delay in enacting the expert recommendations[15] for welfare reform prolongs devastating hardship for many of our children.

When New Zealand went into lockdown the same rules applied to everyone. But we knew the economic shock wouldn’t be distributed equally. Here’s hoping Budget 2021 delivers a recovery that recognises families and whānau who’ve sacrificed the most.

References

  1. ^ recovery and well-being budget (www.rnz.co.nz)
  2. ^ made it clear (www.newsroom.co.nz)
  3. ^ Implementation Unit (www.theguardian.com)
  4. ^ Child and Youth Well-being Strategy Annual Report (childyouthwellbeing.govt.nz)
  5. ^ highlighted (www.stuff.co.nz)
  6. ^ Research (www.wgtn.ac.nz)
  7. ^ particularly low-income families (theconversation.com)
  8. ^ Why NZ’s public sector wage freeze ignores the lessons of history (theconversation.com)
  9. ^ seen internationally (www.brookings.edu)
  10. ^ NZ Budget 2021: we need the arts to live, but artists need to earn a living (theconversation.com)
  11. ^ Working For Families (www.ird.govt.nz)
  12. ^ least affordable (www.bloomberg.com)
  13. ^ If New Zealand can radically reform its health system, why not do the same for welfare? (theconversation.com)
  14. ^ early childcare sector (www.education.govt.nz)
  15. ^ expert recommendations (www.weag.govt.nz)

Read more https://theconversation.com/nzs-second-well-being-budget-must-deliver-for-the-families-that-sacrificed-most-during-the-pandemic-160528

The Times Features

Exploring Hybrid Heating Systems for Modern Homes

Consequently, energy efficiency as well as sustainability are two major considerations prevalent in the current market for homeowners and businesses alike. Hence, integrated heat...

Are Dental Implants Right for You? Here’s What to Think About

Dental implants are now among the top solutions for those seeking to replace and improve their teeth. But are dental implants suitable for you? Here you will find out more about ...

Sunglasses don’t just look good – they’re good for you too. Here’s how to choose the right pair

Australians are exposed to some of the highest levels[1] of solar ultraviolet (UV) radiation in the world. While we tend to focus on avoiding UV damage to our skin, it’s impor...

How to Style the Pantone Color of the Year 2025 - Mocha Mousse

The Pantone Color of the Year never fails to set the tone for the coming year's design, fashion, and lifestyle trends. For 2025, Pantone has unveiled “Mocha Mousse,” a rich a...

How the Aussie summer has a profound effect on 'Climate Cravings’

Weather whiplash describes the rollercoaster-like shifts in weather we’ve experienced this summer —a blazing hot day one moment, followed by an unexpectedly chilly or rainy tur...

The heart research that could save fit and healthy Australians

Australians are now one step closer to being able to check that their heart is in working condition with a simple blood test. Leading scientists at the Heart Research Institu...

Times Magazine

Bridesmaid Duties: What To Do for the Bride

There’s no greater privilege than being chosen as a bridesmaid. Of course, you can’t help feeling joy and excitement with your friend getting married. However, a feeling of anxiety may also creep up on you if you don’t know what to do or if you fee...

Business email compromise attacks are on the rise

Expert shares 5 simple steps to combat email threats every business should consider following There’s an astounding 84% increase in business email compromise attacks, according to the latest Email Threat Report, which compares half-yearly statis...

Creating a Workplace Where People Thrive: Your Role in Psychological Safety

Many people mistakenly believe that creating a psychologically safe workplace is solely the responsibility of the leadership team within an organization. However, creating a psychologically safe environment is a collaborative effort. Every sin...

InVideo Review : Video Creation Tools

So, you have the best and the most exclusive idea for your brand story, and you cannot wait to show this to the world. The best way to put your brand story across is a video, but you hesitate because making and editing a video are ordeals. The e...

Vehicle Emissions Star Rating using public data to inform consumer purchasing decisions

Global open data company Link Digital has used open source technology to develop a new Vehicle Emissions  Star Rating (VESR) website for the New South Wales Government to help drivers consider the efficiency and  environmental impact of their nex...

Everything You Need to Know About Solar Panel Savings

Last year, the U.S. recorded its highest amount of renewable energy usage. It comes at a time where climate change has become an increasing factor in society. To help the Earth, more people have switched to renewable energy sources because they ...

LayBy Shopping