In the wake of the pandemic, the Government is faced with a unique opportunity to build back social and economic conditions that are more equitable and accessible for all New Zealanders. Budget 2021 has capitalised on this opportunity by allocating substantial funds to a range of initiatives that very clearly address the five enduring wellbeing objectives.
One of the most notable announcements is the substantial increase in welfare payments with weekly rates rising between $32 and $55 per adult. The increase aims to support vulnerable and low-income New Zealanders to meet their basic material needs and address some of the key drivers of child poverty including access to safe and affordable housing and food security. The Government has set a bold projection that this will enable between 19,000 and 33,000 children to be lifted out of poverty.
In addition to this, the Government is investing a further $610 million in initiatives that aim to improve child wellbeing, including the extension of the Ka Ora, Ka Ako Healthy School Lunches Programme, financial assistance to caregivers and improving the family justice disputes resolution system.
The Government appears committed to removing inequities within the health system that have led to comparatively poorer health outcomes for Māori and has invested $242.8 million in Māori health initiatives, including $98 million to support the establishment of the Māori Health Authority. This is a major step forward.
Budget 2021 also allocates $7 million to support the development of a Pacific Wellbeing Strategy, which acknowledges the need to support Pacific communities, develop specific wellbeing indicators and build cultural competency across government.
There is no denying that New Zealand has come through the pandemic relatively unscathed in comparison to many of our international counterparts. COVID-19 aside, the Health Promotion Agency 2020 reports that almost 1 in 3 New Zealanders has experienced mental distress. While Budget 2021 has a clear wellbeing focus, there was a disappointing level of investment in initiatives relating to the mental health of New Zealanders.
The focus on addressing systemic inequality, particularly in child poverty, housing and healthcare will have a significant impact on New Zealand’s most vulnerable. However, the outcomes sought through this investment will only be realised if policies and the funding that supports them are targeted and enduring.
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