Our poor are the people most affected by lockdowns with some unable to pay the rent or feed and clothe their children.
Agnes Magele volunteers for Auckland Action Against Poverty in South Auckland and struggles to feed, clothe and house her three children saying “Where I come from there’s no kindness happening.”
“The phrase “be strong, be kind” became a trademark of Ms Ardern’s leadership at the height of the Covid-19 pandemic lockdown.
Ms Magele also says she doesn’t feel like she’s part of the “team of five million”- another phrase coined by Ms Ardern when referring to the population of New Zealand.
“Is it kind when people don’t have enough money to buy basic essentials, such as food, for their children? Is it kind when parents have to skip meals so their kids have a bigger portion?” she asks.”
I wonder what Magele thinks when she hears Ardern announcing “Jobs, jobs, jobs” to a delighted audience given that Magele lost her job just before the first lockdown and the job seeker benefit doesn’t even cover half her rent. The more time passes, the worse are the effects of lockdowns as more businesses go bust or lay off staff.
“She says that in her poor neighbourhood of Otara in South Auckland with a large Maori and Pacifica population, many people have been forced into homelessness because their income or benefits don’t cover their rent.
She said the combination of low benefits and high rent has made it impossible for thousands of families, like hers, to make ends meet.
“Sometimes my kids don’t like going to school because they’re not in the correct school uniform and they don’t have enough lunch to go to school with. That really does a lot to children’s mental well-being,” Ms Magele says.”
“New Zealand has now approached a tipping point when it comes to housing,” says Brad Olsen, a senior economist with Infometrics, an economics analysis think tank.
Mr Olsen says that the number of people trying to get into government funded housing went from 4,000 between 2014-2016 to 20,000 in the years that followed.
“That highlights how precarious and under how much pressure these families are,” he explains.
He adds that it’s not only a lack of houses but the fact that those which already exist are substandard.
“A lot of the time the housing quality is poor. That reinforces some of the issues with poverty. People with healthcare (problems) not able to stay warm and dry or feed the kids because they’re trying to put more money into heating or to take the children to the doctor.”
Ardern’s government drove private landlords out of the market in droves by threatening them with a capital gains tax and giving tenants draconian rights over properties they don’t own. The lack of private rental housing drove rents up.
“The advocacy group Auckland Action Against Poverty says that another indicator of how bad things have become is the increase in demand for food parcels.
They add that three years ago, 100,000 food grants were handed out by Work and Income (New Zealand’s welfare system) in the three months of winter.
Right now that number is up to at least 500,000. A fivefold increase in a period of three years. And that was even before Covid-19 hit.”
While middle income tightens its belt, the poor get poorer. Magele demands that the government give bigger welfare payments.
“Increase our benefits. Stop speaking of kindness and start doing something about it.”
UNICEF NZ executive director Vivien Maidaborn agrees, arguing (incorrectly) that businesses benefited most from the government’s pay-outs during COVID-19 lock down.
“The subsidies at the welfare level have been quite focused on business. What we may have done is entrench the inequality between people who are already struggling and people who have wealth or assets but in terms of cash flow now are struggling.”
Businesses did not receive the lion’s share of government funding during the lockdowns. Employees were the main beneficiaries and then the people who lost their jobs during COVID who received a 12-week benefit of $490 a week – nearly twice the standard benefit of $250.
Those already on a benefit were in the same position as before lockdown except that a shrinking job market keeps them there as more businesses are forced to close their doors.
The Herald reports the number of people receiving government support increased astronomically. At the same time, the pool of money for the government tax take is shrinking, it doesn’t take a genius to figure out this is not sustainable.
Young job seekers have been hit hard by Covid-19, with a rise of more than 80 per cent in the number of 18-24-year-olds on the Job Seeker Allowance.
Recent data from the Ministry of Social Development shows the number of 18-19-year-olds on the Job Seeker Work Ready allowance went from 5970 in August 2019 to 11,105 in August 2020. That’s an increase of 5135 young people on the benefit – or a rise of 86 per cent.
The number of 20-24-year-olds on the same allowance went from 14,220 in August 2019 to 26,268 in August 2020. That’s 12,048 more people on the allowance or an increase of 84 per cent.
In comparison, people seeking Job Seeker assistance in the 40-44-year-old age group went from 6774 in August 2019 to 9949 in August 2020 – an increase of just more than 46 per cent
When Ardern screeches “jobs, jobs, jobs” how does she think the jobs will happen? Will this promise go the same way as her previous promises to end child poverty, build affordable houses and connect Auckland airport to the CBD by light rail?
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