Student wellbeing report finds two-thirds regularly can't afford basics

An inquiry into tertiary student wellbeing led by the Green Party and a large number of student unions has found two-thirds of respondents regularly don't have money to buy basic necessities.

The research, released just hours after annual inflation in the year to June 2022 was revealed to be 7.3 percent, shows a "mismatch between student income and the cost of living" and that hardship could be leading to "poorer tertiary education outcomes". 

"Everyone in this country deserves to live a life of dignity," tertiary education spokesperson Chlöe Swarbrick said. "Our new research shows that's a right denied to thousands of students. Political decisions over the last few decades have normalised and entrenched student poverty. This wasn't an accident. It can be fixed."

The key findings from the inquiry, which received feedback from 4593 students across the country, are:

  • On average, students in shared flats spend 56 percent of their weekly income on rent

  • One in six say their shared flats don't meet their needs, but they can't move as rents are too high

  • Two-thirds regularly do not have enough money to buy food, clothing, pay bills, get health care or other basics. Disabled, Māori and Pasifika students were most likely to be in that position. 

  • Two-thirds haven't been able to pay for transport or the costs of a vehicle, while 91 percent say they would use public transport more if it was free

  • Nearly three-quarters (69 percent) report a decline in mental wellbeing during the COVID-19 pandemic and some said this had a negative impact on their study

Swarbrick wants an increase in student incomes and hopes the research forces change.

"The minority of students who today can access the allowance are in real terms hundreds of dollars worse off a month than students even a decade ago, which is nothing on when education was effectively free prior to the 1980s," the Greens MP said.

"We opened this Inquiry when it was clear neither the Government nor the supposed opposition were interested in the real data or experiences of students on the ground. We said it would give us irrefutable evidence of the systemic barriers and challenges facing the 400,000 students in this country. It has."

The Greens want an increase in student income.
The Greens want an increase in student income. Photo credit: Newshub.

About two-thirds of students don't have enough money to pay for basics, the inquiry found. This is leading some to go without until more money is available, borrowing, drawing down on savings, not paying bills on time or taking extra shifts which often means missing classes. 

The report points out that 60 percent of respondents are not or cannot sometimes be supported by their parents, "including parents with an income over the student allowance entitlement limit". Pasifika and Māori are most likely to not be financially supported by their parents.

The inquiry made five recommendations, including scrapping eligibility criteria for student allowances (which it wants increased), working to embed a code of practice for pastoral care, improving the accessibility of student mental health services, and making public transport free for students.

It also suggests progressing work on a rental warrant of fitness and rent controls, which the Greens have been advocating for. The research found 91 percent of respondents supported rent controls and 82 percent backed rental warrants of fitness. 

One in six students living in shared flats said their house didn't meet their needs, with the most common issues being dampness, mould, poor insulation, crowding, a lack of maintenance and faulting fittings

National vice-President of the New Zealand Union of Students’ Associations, Sam Blackmore, said payments to students should be "accessible and liveable". 

"They should be provided regardless of how much part-time income that a student may make out of necessity to supplement themselves – especially in a cost-of-living crisis," said Blackmore.

"A Universal Education Income, a weekly payment to every student regardless of level of study, age, or parental income would help students meet day to day costs and reduce long term debt."

On top of a suite of other supports, the student allowance was increased by $25 on April 1. However, some students Newshub spoke to in April said it doesn't go far enough.

When the inquiry was announced, Education Minister Chris Hipkins said it was unnecessary.

"I don't think we need an inquiry into student wellbeing, the Government has been very focused on student wellbeing," he said.

The Government on Sunday announced it was extending cuts to the Fuel Excise Duty, Road User Charges and public transport fares until January 31. It will also give $27 a week for three months to every New Zealander earning under $70,000 and not receiving the Winter Energy Payment from August.

The Consumer Price Index (CPI) increased 7.3 percent over the last year. That's the largest jump since 1990 and was driven by housing - including rentals - as well as fuel price rises.