1. Housing Affordability—Household Incomes ReportJACINDA ARDERN (Deputy Leader—Labour) to the Minister for Social DevelopmentORAL QUESTIONSQUESTIONS TO MINISTERSHousing Affordability—Household Incomes Report1. JACINDA ARDERN (Deputy Leader—Labour) to the Minister for Social Development: Does she stand by her statement yesterday that the Ministry of Social Development Household Incomes report shows both lower and higher income households are getting the benefit of a strong and growing economy"; if so does that statement take into account rising housing costs?Hon ANNE TOLLEY (Minister for Social Development): Yes. As I said in the House yesterday the report shows that the net improvement at the top of each income decile has been reasonably even across the board which means that the 11 percent increase above inflation since 2008 is fairly evenly distributed. I refer the member to figure D.10 on page 76 of the incomes report which shows the real equivalised household incomes after housing costs changes for the top of deciles from 2008-09 to 2015-16 which shows households have growing income across the spectrum. Jacinda Ardern: Can the Minister confirm that after housing costs real mean household incomes in fact fell last year? And for that I refer the Minister to page 76.Hon ANNE TOLLEY: No; I dispute the member's reading of the figures. The good news from this report—which as I said yesterday is only up to year 2015-16—shows an 11 percent increase in incomes above inflation and that is reasonably evenly distributed across all deciles.Jacinda Ardern: Can the Minister confirm that the number of households that are now paying more than 30 percent of their income in housing costs and are therefore in housing stress is at a record high? And for that I refer the Minister to page 61.Hon ANNE TOLLEY: I agree that the report shows that as at 2015-16 we were seeing an increased number of people who were paying more for housing costs than anyone in this House would like to see. That is why this Government has a comprehensive housing plan. It is the first Government ever to invest in emergency housing. It is increasing the supply of social housing. It has a huge programme with councils and in fact just on Sunday we announced another $600 million fund to help local councils provide housing.Jacinda Ardern: Can the Minister confirm that after 9 years in Government the poorest are now spending 51 percent of their incomes on housing costs also a record high? And for that I refer the Minister to page 62.Hon ANNE TOLLEY: As I have stated in all my answers that is 2015-16 data that we are looking at and it does not take into account the child hardship package that came into effect. This is the first Government in over 40 years to increase benefit levels for some of our poorest families and of course in Budget 2017 this Government announced a $2 billion Family Incomes Package which also increases the accommodation supplement. That will change the lives of many of those New Zealanders.Jacinda Ardern: Given rents have increased by 5 percent in just 1 year will her benefit increase of $25 which abates make any lasting difference as she has claimed?Hon ANNE TOLLEY: As I have said this annual report does not take into account the effect of that increase in benefits. But as I have also said the $2 billion package that was announced in Budget 2017 does take account of the fact that rents are increasing and that housing costs are increasing for some of the families who are in the most difficult financial circumstances. Because of the strong economic growth that this Government has overseen we are now able to make those sorts of choices to invest in some of our most vulnerable families.Jacinda Ardern: Can the Minister confirm that after 9 years 75000 children now live in homes that are cold and report major problems with dampness and mould given the report states this on page 23?Hon ANNE TOLLEY: I am delighted to report to the House that this report shows that the number of children in poverty using the after housing cost anchored 50 percent of median line or the 60 percent of median line income relations is now below where it was when Labour was last in Government.Jacinda Ardern: How can she possibly call this report good news given it shows that after 9 years her Government has not made a dent in inequality more families are in poverty and housing costs are having a massive impact on people's quality of life? How is that possibly good news?Hon ANNE TOLLEY: Because the member is wrong. She is wrong on so many counts. This report does show that after the global financial crisis (GFC) when the numbers rose we are now in most areas below GFC figures. As I have said for children in hardship we are actually now below as a percentage where the last Labour Government dealt with them."