Paula Bennett

Wellington, July 9 NZPA - With 200,000 children living in benefit-dependent households and food banks running out of food New Zealanders must "give a little", Social Services Minister Paula Bennett says.

New Zealand entered the recession with families already in poverty and the economic conditions have only made things worse, a new report shows.

The inaugural Vulnerability Report by the New Zealand Council of Christian Social Services said hundreds of thousands of families were living in poverty and the social services sector was under-resourced when the recession began.

As the economic environment worsened low and fixed income earners struggled to keep up with increases in the cost of necessities, the report said.

Food, rent and electricity prices have all risen and low income earners have not kept pace, the report said.

"It is clear that the recession is making life more difficult for many people and placing even greater strain on helping agencies."

The recession has seen increased applications to Work and Income New Zealand (Winz) for hardship assistance, the Salvation Army had a 44 percent increase in people seeking food assistance, Wellington's Downtown Community Ministry foodbank had empty shelves six weeks after its last food day appeal and the number of people being declared bankrupt was trending upwards, the report said.

To the year ending March, 211,736 children were living in benefit dependent households, information obtained under the Official Information Act showed.

Childrens' wellbeing correlates with their parents' employment and as the number of people on benefits increases "we anticipate growing child poverty in New Zealand".

Family violence is also an issue, with the National Collective of Independent Women's Refuges reporting increased demand for its services.

Ms Bennett said New Zealand did not have an official poverty line but was "pretty generous welfare state" when compared internationally.

"Is it enough for some people? No, but then life on welfare shouldn't be replacing jobs anyway, so it should be to cover the bare necessities for those needing temporary assistance."

In terms of a lack of resources in social services, Ms Bennett said at this time last year Winz staff were concentrating more on long-term unemployed.

"Now we have gone back to the basics, which is generating as much employment as we can, making sure people have got the basic skills needed to go into work...and matching people to jobs."

Ms Bennett said she had heard about foodbanks and charities running out of food and said there was also a shortage of beds and bedding.

"There is a real shortage and a real need for some people, particularly in the middle of winter."

Ms Bennett said while government helped out, it was largely up to New Zealanders to rally and support organisations which provided food and parcels to the those in desperate situations.

"So I think this is a time where a lot of people need to give a little."

The Vulnerability Report will be produced every quarter to "monitor the level of economic and social hardship".

Information in the report is collected from government agencies and community based organisations.