Half of New Zealanders know poverty first hand

New Zealand needs a major re-think of what is a liveable family income, as a new study reveals half of all households are likely to have spent time in poverty, the Green Party says.

An Otago University study the 'Dynamics of Income and Deprivation, looked at incomes over a seven-year period and found that poverty was much more prevalent than the traditional "snap shot" view normally reveals.

"It shows that half of all New Zealanders are likely to know first-hand what it means to struggle to get by," Green Party Co-leader Metiria Turei said.

"It also reveals a disturbing percentage of households - 12 per cent - are likely to have visited a food bank or received money or clothes from a community organisation.

"For households with children, or who are Maori, the situation is even worse," Mrs Turei said.

"This study focussed on the years 2002 to 2009 when Labour was mainly in Government. But tax cuts for the rich, and a range of attacks on families under National, will only have widened the gap between the haves and the have nots.

"This shows that both National and Labour have failed to meet the needs of a huge portion of New Zealand families."

The Green Party believes its time for real costings into what families actually need to earn to run a household in a way that enables people to not just survive, but participate fully in society, Mrs Turei said.

"The Government's wave of attacks on young families - as it hikes student loan repayments, shaves $200 million from part of the welfare system - is going to make things worse for our most vulnerable families."

The Green Party would reduce pressure on families by creating a strategy to tackle inequality based on what it really costs to run a household.

We have a plan to see all families in quality, stable housing.

Families need a progressive tax system, progressive student loan repayments and an increase in the minimum wage.

The Green Party would also extend Working for Families tax credits to benefit all children - including those whose parents are on the benefit.

"My member's bill, which achieves that for beneficiary children, will be put into the ballot tomorrow." Mrs Turei said.