Poverty advocacy group issues scathing response to Labour's policies for low-income families

A poverty advocacy group has issued a scathing response to a letter from the Labour Government detailing how it's helped low-income families, accusing it of "institutional gaslighting" and "dismissing the lived experience of everyone on a benefit".

The letter, sent to Auckland Action Against Poverty (AAAP) in response to their plea to boost benefits and low incomes before Christmas, sets out all Labour's achievements in fighting poverty since coming into power.

It pointed out the introduction of its child poverty reduction target, $5.5 billion Families Package, the COVID-19 wage subsidy and the move to index main benefits to average wage growth as examples of policies that benefit New Zealand's poorest citizens.

"As you have said, we all want every child in Aotearoa to experience a thriving and happy childhood," the letter, signed by Prime Minister Jacinda Ardern, Finance Minister Grant Robertson and Social Development Minister Carmel Sepuloni reads.

"That's why we already started making a range of changes over the course of our last term, which we believe will have made a significant difference for families with children on the lowest incomes, including those supported by benefits."

But while AAAP acknowledges the Government has made steps in the right direction, spokesperson Brooke Stanley Pao says its actions aren't enough to meet the urgent needs of vulnerable Kiwis.

"In the letter it mentions the Government is proud of what they've achieved, but it's very different to what people are experiencing on the ground," she says.

"Jacinda Ardern, Carmel Sepuloni and Grant Robertson are all people who don't have to live or be directly affected by the impacts of their decision to choose to keep people in poverty. I bet they don't even know anyone in their direct circles who are receiving welfare support.

"We're well aware of what they've implemented and we've been saying it's not enough. The letter dismisses the lived experience of everyone on a benefit... At this point it's institutional gaslighting and people are exhausted."

Among AAAP's biggest complaints is the Government's lack of action on the construction of public housing.

Labour has promised to deliver an extra 8000 new public and transitional homes through Budget 2020, in addition to the 6400 public housing homes that were currently being built.

But AAAP points out that there are still more than 20,000 people waiting for state or social housing - more than triple the size of the waitlist in 2017, when Labour first returned to power.

"The letter talks about their commitment to building more public housing, when the public housing waitlist is at 20,000 households. The average rent in Tāmaki Makaurau (Auckland) is about to hit $600 before the end of the year and it's already at $625 in Porirua," Pao says.

"They need to commit to building enough public housing to house the waitlist and all those struggling with private rentals."

Pao says the Government needs to take action now to address inequality.

"We're staunch in our belief that everyone should have what they need in order to thrive and the things we're fighting for are essential human rights," she says.

"Everyone should have the protection of secure and affordable housing, along with enough resources to ensure themselves and their children aren't left behind. We don't want our communities to be continuously ignored.

"If they don't urgently address the needs of the people and families we work with, then the poverty crisis will be a part of the Labour government's legacy."