Child poverty and hunger is devastating and the effects can last a lifetime. Let’s think outside the box to find effective ways to reduce child poverty in Aotearoa.
1. A Universal Child Benefit, Paid by the Reserve Bank
Imagine every child in New Zealand receiving a monthly dividend—a regular payment, funded not by taxes or debt, but directly from the Reserve Bank.
Such a payment could:
- Guarantee a minimum standard of living
- Reduce dependence on fragmented welfare systems
- Support parents, especially in single parent or precarious employment situations
When an expanded U.S. Child Tax Credit was trialled in 2021, child poverty dropped by nearly 50% in six months. A similar scheme here could be transformative.
2. Funding Universal Essentials
With public money, the government could fully fund core services that impact child wellbeing:
- Free, high-quality early childhood education
- Healthy school lunches for all tamariki
- Warm, safe housing through a public home-building initiative
These aren’t luxuries—they’re foundations for a thriving life.
3. Job Guarantee for Parents
Many whānau in poverty are working hard, often juggling multiple part-time or low-paid jobs. A sovereign-money-funded Job Guarantee would ensure every parent who wants work can find it—at a living wage, in socially useful roles like care-giving, education support, or conservation.
Not only would this provide income stability, it would build community resilience and invest in the future.
4. Debt Relief and Economic Safety Nets
Debt is a silent killer of dreams. Many low-income families are trapped in spirals of borrowing just to meet basic needs.
Public money could be used to:
- Cancel or restructure household debts
- Create automatic stabilisers—like rapid-response payments when families face job loss, illness, or cost spikes
This isn’t about reckless spending—it’s about smart investment in the next generation.
Is It Inflationary?
The common worry is: won’t this cause inflation?
Not necessarily. When sovereign money is used to unlock underused resources—like unemployed people, idle housing stock, or empty classrooms—we’re simply putting the economy to work for all of us.
Good policy design and capacity-building investments (like training teachers or building homes) can manage inflation risks.
Time for Courageous Thinking
Aotearoa has the resources, the people, and the ingenuity to end child poverty. The only thing we lack is the political will to use our tools differently.
Sovereign money isn’t a silver bullet—but it opens the door to solutions that match the scale of the crisis.
It’s time to stop asking what we can afford, and start asking: what kind of future do we want for our tamariki?
– Tama Toa Māia, CoOperativeNZ 2025
