A Ministry of Social Development report has found child poverty is worsening in New Zealand, with an estimated 210,600 children living in households below the poverty line. The report, surfaced on 2 August 2026, comes as cuts to disability support draw fresh criticism from advocates who say vulnerable families are being pushed deeper into hardship (RNZ).

Official statistics from Whaikaha, the Ministry of Disabled People, show that more than a quarter of disabled children live in poverty. Children in disabled households are 4.5 times as likely to experience severe material hardship compared with children in non-disabled households, according to the same statistics (RNZ).

Glen McMillan, head of Children with Disability New Zealand and himself disabled as a result of a childhood accident, said the true number of disabled children in poverty was likely much higher than official figures. He said many poorer families feared asking for help because of potential discrimination. McMillan also pointed to the added financial burden of special diets required by many disabled children, costing about $90 a week (RNZ).

McMillan said cuts to disability support were pushing vulnerable families deeper into poverty. He said many disabled people saw the Disability Support Services (DSS) Bill as a withdrawal of support and instead wanted the benefit abatement rate to be increased (RNZ).

Minister defends DSS Bill

Disability Issues Minister Louise Upston said one purpose of the DSS Bill was to make it easier for disabled people to understand what support was available and to continue to improve support. She said the Bill did not change current eligibility and access settings nor increase family responsibility (RNZ).

Upston separately announced that from 1 April 2026, existing DSS users will receive a new flexible funding budget based on how much they have spent in the past. The government has stated that changes to disability support assessment, allocation and flexible funding will all be in effect by April 2026 (disabilitysupport.govt.nz).

Budget 2026 and sector response

CCS Disability Action reported that Budget 2026 includes a $1.46 million cut to Whaikaha — the Ministry of Disabled People (CCS Disability Action). The organisation also said the $21.3 million headline figure for the Child Disability Allowance in Budget 2026 does not actually increase the rates or entitlements families receive (CCS Disability Action).

A poll commissioned by Save the Children, conducted in May 2024, found that two-thirds of the public wanted funding for Whaikaha reinstated after sudden cuts in March that year (Save the Children).

Statistical context

Stats NZ published its "Child poverty statistics: Year ended June 2025" information release on 26 February 2026 — the seventh report under the Child Poverty Reduction Act 2018 and the first to use data from the Household Income and Living Survey (Stats NZ). The Act lists 10 child poverty measures and was introduced to help achieve a significant and sustained reduction in child poverty. The income measures are based on equivalised disposable household income, adjusted for household size and composition.

The Household Income and Living Survey has a target sample size of 17,000 households and achieved approximately 17,892 for the year ended June 2025. On 12 February 2026, Stats NZ published revised child poverty statistics for the years ended June 2019 to 2024 as part of a population rebase.

For the year ended June 2025, there was no statistically significant annual change in child poverty rates for disabled children for measure (a) (Stats NZ). In the year ended June 2024, 13.4 percent of children in New Zealand lived in a household experiencing material hardship (Stats NZ).

Stats NZ has also signalled a methodology update. From February 2026, the agency will produce material hardship statistics using a new 18-item index, replacing the existing measure (Stats NZ).

What to watch

The convergence of the MSD report, the DSS Bill progressing through Parliament, and the flexible funding changes taking effect from April 2026 puts disability-sector poverty squarely in the political frame. Advocates are framing the government's package as a net reduction in support; the Minister is framing it as clarification and continuity. The 4.5-times material hardship figure for disabled households gives that disagreement a sharp statistical edge.

The methodology shift at Stats NZ adds another variable. When the 18-item index replaces the current measure, year-on-year comparisons will require care, and any baseline change could alter how progress against the Child Poverty Reduction Act targets is assessed. For MPs and advisers tracking this file, the next data release under the new methodology will be the one to watch.