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RNZ News
16-07-2025
- General
- RNZ News
Charities see alarming levels of poverty as families struggle
There are a dozen people in the Latu household in the Auckland suburb of Mangere, but not enough beds for everyone. Three of Unaloto Latu's children have to sleep on couches in the living room. "Those three big chairs over here, our younger children sleep here... we know that sometimes it's hard for them but they have no choice." She and her husband have eight children aged between six and 18, and two relatives staying. Her husband has been off work with a knee injury for about three years and their household income, reliant on the benefit, is always stretched. They are not alone - social services said they are seeing an alarming level of poverty as families struggle with the cost of living. Unaloto Latu. Photo: RNZ / Marika Khabazi Four agencies RNZ spoke to said they regularly hear of families sleeping in one room and turning off the power during the day as they try to stay warm and pay their electricity bills. Charities - including the city missions, Variety, Kids Can and Family Works - are running winter appeals to help support families facing hardship. Latu sells her homemade cakes to help pay for eggs and milk for her family - but it is not enough. "Kids can go without milk, meat and bathroom stuff, cleaning stuff. Sometimes they need clothes and shoes, broken, husband can fix it he says he can get another two weeks from that." The power and internet bills are paid but Latu said dinner is sometimes just rice - her children's schools are part of the government lunch programme. "Sometimes if we have, we have. If not, they come [home] and just go in their room," she said. "It's crazy right now and it looks like everything in the shop is going up each before i can buy six [bottles] milk a week for our kids but now two." Latu said she sometimes struggles to remain positive. "It is so hard but I always say to my friends and family I don't want to sit down and focus on that side, because I'm a very emotional person I'm going to cry the whole day not doing anything thinking of those things. I try to keep moving forward." Latu said she is grateful to Variety for sponsoring her children, meaning they each receive $50 a month as a contribution to household costs. Stats NZ figures show electricity costs have gone up almost 9 percent since June last year. Petrol has gone up 15.5 percent over the same period. Consumer NZ's annual energy retailer survey found seven percent of New Zealanders have had to take out loans to pay their power bills - unchanged since last year. Chief executive Jon Duffy said the number of people concerned about the cost of electricity has jumped 10 percent in the last year. "These financial concerns have led us into a dire situation where 11 percent of people are underheating their homes." Duffy said the underlying market structure needs an urgent overhaul in order to slow down the growing number of New Zealanders experiencing energy hardship. This week, the Electricity Authority announced it would force big electricity retailers to offer cheaper prices for off-peak power use prices, and fair prices to people who sell surplus power to the grid from roof top solar panels at peak times. It is changing sector rules to require retailers with more than five-percent market share to offer time of use prices from the middle of next year, after a report by a joint task force of the Authority and the Commerce Commission. The changes were aimed to give consumers more choice in how and when they use power, and put downward pressure on prices. Presbyterian Support Northern general manager of social services Grenville Hendricks said this winter is worse for those on the breadline. The organisation is helping 800 fewer families after its government funding was cut by $1.5 million last year. "Agencies are struggling to keep their services running, let alone try and support people coming in," he said. "It's also a challenge when there's been issues around benefit payments, there's been reductions in the numbers of available social housing." Hendricks said that all contributed to people struggling to pay their bills, including power. "People are trying to manage as best they can, but given all the other circumstances that are currently happening in New Zealand with the cost of living, unemployment, reduction in social services, it means that actually the power challenge becomes exacerbated." He said they have heard of families sleeping in one room and children sharing beds to keep warm, and that the health of those not sleeping in beds or in damp mouldy houses was suffering. Zero Hunger Collective executive officer Tric Malcolm said she is hearing examples across the country of families struggling to pay for basics. "What is normal now, most people wouldn't have even dreamed of several years ago." She said for the first time in almost a decade they were hearing stories of families across the country struggling to keep their power on this winter. "I haven't heard these stories since the global financial crisis. Families are putting the heating on in one room and sleeping in that one room so that they can save energy," Malcolm said. "It's those moments that cause me worry and make me feel sad because people aren't able to access good dry, warm homes because they don't have enough funds in their household income." She said people then reduce the amount that they eat. Auckland City Missioner Helen Robinson said its services are experiencing increased demand and people would often cover their rent and utilities before buying food. "People are making terrible, terrible choices. Do I send kids to school, do I have the power on? Do I pay for the washing machine to be fixed, do I have the power on? Do I get food?" she said. "What we know is that the demand for food, so therefore the inadequacy of people's weekly income, is significantly increasing, so much so that we can't meet the need and I am deeply distressed to acknowledge that." Variety sponsors about 10,000 children and chief executive Susan Glasgow said the wait list has more than 3000 children living in material deprivation. "Unfortunately these are children all throughout New Zealand who are living in material deprivation, in cold, damp homes, sleeping on the floor, not having enough school uniforms to go around all the children in a household, they're living in really tough times." Glasgow said they hear from families regularly who are struggling to afford to heat their homes, and they often sleep in one room sometimes with the oven on for warmth. "New Zealand is teetering on the brink. I think if we don't take some pretty severe steps very soon we're going to see more children plunged into poverty and the long term outcomes for New Zealand are going to be dire," she said. "We want a healthy, vibrant group of young people who can contribute to our economy, who are well educated, who can support us in our dotage. You know, it's just good for New Zealand to invest, and it's not about charity, it's about investment in our future as a country." Unaloto Latu dreams of a bright future for her children and encourages them to help others. "Our hope for our children, we always teach them to go to school and study hard so you can get a job that will give you what you need." And when they have grown up, Latu has dreams of her own. "For myself, my hope and dream is when my kids are all in good places I want to travel around the world." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
16-07-2025
- General
- RNZ News
Cost of living: Charities see alarming levels of poverty as families struggle
There are a dozen people in the Latu household in the Auckland suburb of Mangere, but not enough beds for everyone. Three of Unaloto Latu's children have to sleep on couches in the living room. "Those three big chairs over here, our younger children sleep here... we know that sometimes it's hard for them but they have no choice." She and her husband have eight children aged between six and 18, and two relatives staying. Her husband has been off work with a knee injury for about three years and their household income, reliant on the benefit, is always stretched. They are not alone - social services said they are seeing an alarming level of poverty as families struggle with the cost of living. Unaloto Latu. Photo: RNZ / Marika Khabazi Four agencies RNZ spoke to said they regularly hear of families sleeping in one room and turning off the power during the day as they try to stay warm and pay their electricity bills. Charities - including the city missions, Variety, Kids Can and Family Works - are running winter appeals to help support families facing hardship. Latu sells her homemade cakes to help pay for eggs and milk for her family - but it is not enough. "Kids can go without milk, meat and bathroom stuff, cleaning stuff. Sometimes they need clothes and shoes, broken, husband can fix it he says he can get another two weeks from that." The power and internet bills are paid but Latu said dinner is sometimes just rice - her children's schools are part of the government lunch programme. "Sometimes if we have, we have. If not, they come [home] and just go in their room," she said. "It's crazy right now and it looks like everything in the shop is going up each before i can buy six [bottles] milk a week for our kids but now two." Latu said she sometimes struggles to remain positive. "It is so hard but I always say to my friends and family I don't want to sit down and focus on that side, because I'm a very emotional person I'm going to cry the whole day not doing anything thinking of those things. I try to keep moving forward." Latu said she is grateful to Variety for sponsoring her children, meaning they each receive $50 a month as a contribution to household costs. Stats NZ figures show electricity costs have gone up almost 9 percent since June last year. Petrol has gone up 15.5 percent over the same period. Consumer NZ's annual energy retailer survey found seven percent of New Zealanders have had to take out loans to pay their power bills - unchanged since last year. Chief executive Jon Duffy said the number of people concerned about the cost of electricity has jumped 10 percent in the last year. "These financial concerns have led us into a dire situation where 11 percent of people are underheating their homes." Duffy said the underlying market structure needs an urgent overhaul in order to slow down the growing number of New Zealanders experiencing energy hardship. This week, the Electricity Authority announced it would force big electricity retailers to offer cheaper prices for off-peak power use prices, and fair prices to people who sell surplus power to the grid from roof top solar panels at peak times. It is changing sector rules to require retailers with more than five-percent market share to offer time of use prices from the middle of next year, after a report by a joint task force of the Authority and the Commerce Commission. The changes were aimed to give consumers more choice in how and when they use power, and put downward pressure on prices. Presbyterian Support Northern general manager of social services Grenville Hendricks said this winter is worse for those on the breadline. The organisation is helping 800 fewer families after its government funding was cut by $1.5 million last year. "Agencies are struggling to keep their services running, let alone try and support people coming in," he said. "It's also a challenge when there's been issues around benefit payments, there's been reductions in the numbers of available social housing." Hendricks said that all contributed to people struggling to pay their bills, including power. "People are trying to manage as best they can, but given all the other circumstances that are currently happening in New Zealand with the cost of living, unemployment, reduction in social services, it means that actually the power challenge becomes exacerbated." He said they have heard of families sleeping in one room and children sharing beds to keep warm, and that the health of those not sleeping in beds or in damp mouldy houses was suffering. Zero Hunger Collective executive officer Tric Malcolm said she is hearing examples across the country of families struggling to pay for basics. "What is normal now, most people wouldn't have even dreamed of several years ago." She said for the first time in almost a decade they were hearing stories of families across the country struggling to keep their power on this winter. "I haven't heard these stories since the global financial crisis. Families are putting the heating on in one room and sleeping in that one room so that they can save energy," Malcolm said. "It's those moments that cause me worry and make me feel sad because people aren't able to access good dry, warm homes because they don't have enough funds in their household income." She said people then reduce the amount that they eat. Auckland City Missioner Helen Robinson said its services are experiencing increased demand and people would often cover their rent and utilities before buying food. "People are making terrible, terrible choices. Do I send kids to school, do I have the power on? Do I pay for the washing machine to be fixed, do I have the power on? Do I get food?" she said. "What we know is that the demand for food, so therefore the inadequacy of people's weekly income, is significantly increasing, so much so that we can't meet the need and I am deeply distressed to acknowledge that." Variety sponsors about 10,000 children and chief executive Susan Glasgow said the wait list has more than 3000 children living in material deprivation. "Unfortunately these are children all throughout New Zealand who are living in material deprivation, in cold, damp homes, sleeping on the floor, not having enough school uniforms to go around all the children in a household, they're living in really tough times." Glasgow said they hear from families regularly who are struggling to afford to heat their homes, and they often sleep in one room sometimes with the oven on for warmth. "New Zealand is teetering on the brink. I think if we don't take some pretty severe steps very soon we're going to see more children plunged into poverty and the long term outcomes for New Zealand are going to be dire," she said. "We want a healthy, vibrant group of young people who can contribute to our economy, who are well educated, who can support us in our dotage. You know, it's just good for New Zealand to invest, and it's not about charity, it's about investment in our future as a country." Unaloto Latu dreams of a bright future for her children and encourages them to help others. "Our hope for our children, we always teach them to go to school and study hard so you can get a job that will give you what you need." And when they have grown up, Latu has dreams of her own. "For myself, my hope and dream is when my kids are all in good places I want to travel around the world." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Yahoo
11-07-2025
- Politics
- Yahoo
Israeli residents displaced by Iran missile attacks told to leave temporary hotel housing
Residents evacuated from homes damaged by missile strikes during Operation Rising Lion are now being asked to leave the hotels where they have been temporarily housed. Residents evacuated from homes damaged by missile strikes during Operation Rising Lion are now being asked to leave the hotels where they have been temporarily housed. While some evacuees have returned to properties that sustained only minor damage, others—whose homes require long-term repairs—are being urged to seek alternative housing solutions. These include staying with relatives or renting apartments, though rising rental prices in missile-affected areas have made this especially challenging. In cases where homes suffered only limited damage, the Property Tax Authority will no longer fund extended hotel stays. Instead, residents are expected to carry out repairs using the compensation amounts allocated to them. Additionally, several hotels have begun asking evacuees to leave due to prior contractual commitments made before the war, including bookings from international sports delegations and Israeli vacationers. At the Kfar Maccabiah Hotel in Ramat Gan, where more than 400 evacuees were housed following the first missile strike on the city, roughly half have already left—some returning to their homes and others securing new accommodations. Hotel management has informed the remaining 200 evacuees that they will need to vacate by early next week. Alternative hotels may be provided, but evacuees are encouraged to make independent housing arrangements where possible. 'We acted quickly on Friday night after the first missile hit Ramat Gan and received hundreds of evacuated families, including many children,' hotel representatives said. 'However, we are now required to fulfill prior commitments and prepare the rooms for guests arriving from both Israel and abroad.' It remains unclear where long-term evacuees—those facing months or even years away from their homes—will be relocated. Municipalities may step in to assist and coordinate with the Property Tax Authority to approve continued government funding for those who remain eligible. Hotel stays are covered by the state for a period determined by the authority's assessment teams.
Irish Times
09-07-2025
- Business
- Irish Times
Is the Help to Buy scheme fit for purpose or should it be abolished?
Help to Buy is marketed as a scheme that assists first-time buyers to bridge the gap between their savings and the 10 per cent deposit required by Central Bank mortgage rules. It has survived for almost a decade despite widespread criticism by experts, and its continued existence reflects the power of Ireland's construction lobby and the political cynicism around housing. The first criticism of Help to Buy is that it has become a money pit. Initially conceived as a modest scheme that would cost €130 million over its 2016 to 2019 lifetime, Help to Buy has been extended multiple times, and will now remain in place until at least 2029. It has gained weight since its introduction, with the maximum subsidy rising from €20,000 (or 5 per cent of the home purchase price) to €30,000 (or 10 per cent of purchase price). Consequently Help to Buy has become much more expensive than originally envisaged; Claims amounted to €225.5 million last year , and the cumulative sum of claims approved has reached almost €1.3 billion . This might be palatable if Help to Buy was well designed and working effectively. However reports by the Parliamentary Budget Office (PBO) ( 2019 and 2022 ), Mazars and the Central Bank give rise to many concerns. Evaluations highlight that the scheme carries considerable 'economic deadweight'. According to the PBO a third of recipients did not need Help to Buy to achieve their 10 per cent deposits. Meanwhile Mazars , which was commissioned by the Department of Finance to review the scheme, found almost half of the funds spent played no part in achieving its objectives. READ MORE A further critique is that Help to Buy is socially regressive. Both Mazars and the Central Bank found that it mainly benefits richer households. This is not surprising as higher incomes are almost a prerequisite for considering home purchase in Ireland. However the Central Bank's analysis showed that the average income of Help to Buy households was €15,500 greater than that of other first-time buyers. Help to Buy also funds more expensive homes. The PBO established that 63 per cent of claims relate to properties whose prices exceed the national average. Meanwhile the Central Bank found that Help to Buy properties were €62,800 more expensive than those purchased by other first-time buyers. Reinforcing the perception that this scheme finances luxury rather than supporting necessity, the Central Bank noted that homes bought using Help to Buy were also bigger. Mazars, the consultant employed to evaluate Help to Buy, found it unfit for purpose and recommended its withdrawal in 2024. Instead the Government doubled down and extended it for five years Despite these problems, successive governments have persevered with Help to Buy. This is because it stimulates home building. Indeed, the words of then minister for finance Michael Noonan when he announced the scheme reveal that this is its real purpose; 'There is an acute shortage of new houses being built in Ireland and I am introducing a Help to Buy scheme to address this problem.' Unfortunately, the way in which Help to Buy achieves increased supply exacerbates rather than mitigates our housing problems. People believe and have been led to believe that increasing housing output will automatically bring down house prices and rents. But this is not necessarily so. Construction activity follows the profit margins that are available, and the outcome for consumers depends on whether these margins are driven by low costs or high selling prices. With a low cost base, developers can earn a profit while delivering homes at an affordable price. However the policies required to suppress development costs involve difficult, slow-acting interventions that lack voter appeal. Examples include planning reforms which reduce delays and deliver more predictable outcomes for developers, regulation of professional services such as solicitors, architects and estate agents, the encouragement of competition to drive down professional fees, and financial sector initiatives to reduce development finance costs. Although Irish governments have done some of this, they have favoured the easier approach of subsidies such as Help to Buy, the First Home Scheme and the local authority home loan. These 'supports' enable consumers to pay higher prices, and this is what creates the development margin that draws out more supply. Clearly, higher prices are hard-wired into this process. The International Monetary Fund , the European Union and the National Economic and Social Council have all warned that Help to Buy could drive up prices. However senior figures from the property industry have denied this, referencing the Help to Buy and First Home Scheme price caps as a safeguard against inflation. Clearly, such caps can contain price growth only if they are set at an appropriate level and implemented firmly. Neither seems to be the case in Ireland. The Help to Buy cap stands at €500,000. This is well above the €417,680 median price paid by first-time buyers of new homes, and is exceeded in only two local authorities – so it is hardly binding. Nevertheless, estate agent Savills is campaigning for it to be raised to €621,000. Last week The Irish Times reported that agents Sherry FitzGerald offered to circumvent the Help to Buy cap by unbundling the cost of flooring from the official price of a new home in Wicklow. The company said it had begun an internal investigation. Days later, the First Home Scheme price caps were raised, chasing up the market for the fourth time in three years. Mazars, the consultant employed to evaluate Help to Buy, found it unfit for purpose and recommended its withdrawal in 2024. Instead the Government doubled down and extended it for five years. This is because it ticks two political boxes. Firstly, Help to Buy is popular, as it is perceived as free money. But the benefits to consumers are illusory because the subsidies result in higher house prices, and everybody pays more tax to fund them. Secondly, by drawing out more supply, the scheme helps the Government to meet its housing targets. Somehow, this has become an objective in itself. But, as we have seen, increased housing output achieved in this way will not deliver the lower prices that consumers expect. Dr John McCartney is a lecturer in property economics at TU Dublin and adjunct associate professor at UCD.
News.com.au
08-07-2025
- Business
- News.com.au
‘Constant topic of conversation': Rates hold Aussies just don't deserve
There's no cheap way left to live, and today's announcement from the Reserve Bank of Australia has officially crushed the collective Australian spirit. Aussies simply aren't feeling financially optimistic anymore. Mortgage holders are weary and the rest of us simply can't afford to buy houses. The Reserve Bank announced today that the cash rate has held at 3.85 per cent. After three long years of trying to survive in a cost-of-living crisis, Aussies are exhausted, fed up and finding it difficult to get fired up. The cost of living crisis kicked off in late 2021 – and, nearly four years later, it appears there's no end in sight. The median rental price nationwide is $620, and the median price to buy a house is over $900,000. According to the financial comparison website Finder, the average home loan size is $659,000, with monthly repayments of $3,935. The rates holding is a brutal call. When hit the streets earlier today to ask Aussies if the rate cut would be a relief, the answer was … duh. One woman stopped to chat and said, 'of course', rates dropping would make a difference and would provide much needed relief. Another homeowner explained that she'd found the increasing rates pressure from the past few years tough. She said she owned in Queensland but rented in Sydney and she found the rising rates over the last few years quite confronting. 'It has not been great,' she admitted. A young dad pushing a pram said that a rate cut would be fantastic news because as a father with a young family, every little bit helps. 'The last couple have been very helpful, particularly with a young family. It's handy to have that additional cash,' he said. While a woman wearing a trench coat agreed that another rate cut would very much be a 'good thing' and make a difference. One guy explained that he wasn't waiting for rate cuts but only because he was luckily on a fixed mortgage. 'I'm fine for another year,' he said. When asked if he was scared to come off his fixed mortgage and be at the mercy of the RBA – he had to concede he wasn't thrilled at that prospect. 'Yes, it does, but that is next year's problem,' he reasoned. The only people that weren't hanging out for a rate cut were those who don't own homes and therefore aren't impacted. A young woman summed up the vibe of the day as she explained homeownership felt out of reach and therefore rates just don't feel relevant. 'I don't think I'm probably going to be able to afford a house anytime in my lifetime,' she said. 'I'm not going to be in a position to buy properly ever.' She said the same was true for her group of friends, and if someone managed to get onto the property ladder, it would be a shock. 'If someone I knew bought a house it'd be an astronomical world event,' she said. Financial expert Julian Finch said the cost of living crisis is such a 'generational event' that there's a growing sense of financial fatigue and holding rates isn't going to help morale. 'It is just a constant topic of conversation,' Mr Finch told 'It is also coming from all sides, whether it is your electricity bill or your mortgage repayments. It is relentless.' Mr Finch argued that so many Aussies are already behind and are constantly looking for relief. 'If you get behind it can feel impossible to recover because the hits just keep coming and coming. Incremental improvements can feel useless,' he argued. The financial expert noted a growing trend of people including his own clients experiencing increasing financial stress. 'Financial stress is one of the worst kinds of stress you can feel. It can wake you up in the middle of the night and you can't escape it,' he said. Mr Finch said he struggles to maintain a financially optimistic outlook at the moment because everything is so expensive. 'If I speak from a personal point of view, it is hard,' he said. 'Every month, you get a good whack of cash, and you can take a breath, and then a week later, all your outgoings have been distributed, and you wonder if you'll have enough to get to the end of the month.'
