Income inequality worse in 2013

by NZ CATHOLIC staff
WELLINGTON — Income figures released on July 9 show that income inequality increased again
in 2013.
The incomes of the lowest half of income earners have seen no increase in five years, while the top half increased their incomes.
Housing costs are also having a huge impact on people’s incomes, said New Zealand Council of
Christian Social Services (NZCCSS) policy adviser Paul Barber. Half of all the people receiving the accommodation supplement are paying more than 50 per cent of their income in rental housing or mortgage finance costs, Mr Barber said.
People are being driven into homelessness because of the lack of affordable rental housing, especially in Auckland and Christchurch, he said. People sleeping in cars because there is no housing, and families paying $400 a week to live in sub-standard caravan parks, are evidence of the housing chaos for many low income families.
“New Zealand’s housing sector is a glaring example of the negative effects of income inequality,” Mr Barber said.
“Our health is damaged by poor quality, overcrowded houses. Maori and Pacific communities are
more affected than others, reducing their chances to get ahead in life.
“The present programme of housing reform isn’t making the promised difference for the most
vulnerable in our communities.
“We are yet to see more houses for those in the lowest third of the housing market. Housing Minister Nick Smith concedes the problem needs years to be resolved — cold comfort for those who are sleeping in cars and caravans right now.”
The investment that is going into housing now is too little to make any significant impact to
reduce poverty and inequality, Mr Barber said.
Over the past 30 years, a huge gap has opened up between the rich and the rest in New Zealand.
The incomes of the top 10 per cent and 1 per cent have doubled, while everyone else has seen very little increase.
“Housing is vital to wellbeing,” Mr Barber said. “Lower rental costs allow people to spend more on other essentials like food, clothing and heating.
“If we do social housing well, then everyone benefits from the more equal and cohesive society
that results.”