What’s Widening the Divide in Aotearoa?
The gaps aren’t closing themselves
The wealth gap in Aotearoa is a very real thing: Stats NZ reported in 2022 that the wealthiest 22% of households hold 69% of total household net worth. We mentioned the return of child poverty to pre-Child Poverty Act levels in a recent blog post. The release of the National Business Review’s 2025 rich list demonstrated that the rich are most certainly getting richer in Aotearoa. This increase is not reflected at the other end of the scale.
Any chance we have of minimising this inequality in New Zealand begins with how we set up our tamariki for success now. There’s no path to making the nation a more equitable place without investing in programmes and services that allow a brighter, healthier, and more affluent future for the next generation.
Several proposed legislation changes that have been in the news recently have demonstrated that these crucial investments are not being prioritised.
Amendments to the Equal Pay Act
Recently, the government announced that changes that will be made to the Equal Pay Act 1972, and this was signed into law on the 13th of June. The amendment will discontinue all current pay equity claims and put in place new and more stringent requirements for future claims. This move cancelled 33 in-progress pay equity claims, potentially saving the government billions of dollars—but at what long-term cost?
At the centre of this are pay equity claims targeted at historically undervalued female-dominated industries. In the past, settlements have been made under the Act for the social work and nursing professions, both roles which have been undervalued due to a reputation as “women’s work”. The amendments this year will likely put paid to further equity action.
Will those working in female-dominated industries—whether they be male or female—still have their labour undervalued in the next generation? Will soft skills such as empathy, interpersonal communication, and emotional intelligence stunt rather than contribute to a person’s earning capacity?
It was great to see social workers receive a settlement in 2022, and nurses in 2023. However, childcare and education are firmly female-dominated and are struggling to attract people due to low pay rates for a mentally and often physically challenging job. These are the people that care for and nurture our next generation; literally shaping the future of Aotearoa. What is the future of education if pay inequities are allowed to continue?
School lunch programme
The school lunches programme received a budget cut in 2025, moving away from local suppliers to a centralised model. Since then, there has been controversy over the quality and appeal of the lunches, with supply issues causing some staff to roll up their sleeves and make hundreds of sandwiches so that tamariki had something to eat on a given day. The budget also allocated funding for lunches only until the end of 2026, with the future of the programme beyond that uncertain. An inquiry is being conducted to review the procurement process.
Concerns over the quality and existence of the school lunch programme further demonstrate a lack of investment in the future of our nation. Prioritising the health and nutrition of our tamariki NOW will have a direct positive effect on their wellness in ten, twenty, and thirty years.
Just as providing quality education and opportunities—like we at Digital Future Aotearoa are aiming to do with our initiatives—to them NOW is what will help to close the wealth and opportunity gap in ten, twenty, and thirty years.
Breaking poverty cycles
With a stretched budget, it may seem logical to cut programmes that have little immediate benefit (or that don’t appeal to a voter base). However, this is a short-term view that doesn’t address generational issues like child poverty and an increasing wealth gap.
A brighter future requires action in the here and now. Our mahi here at DFA, just like the pay equity claims that were being made and the school lunches program, are putting in the effort to ensure that all New Zealanders have access to the foundations they need for more stability and prosperity in the decades to come.
If you’d like to be a part of that brighter future, there are several ways you can donate to our programmes that are equipping tamariki, rangatahi, teachers, and the community with both the resources and skills needed for a more digitally equitable future. We are also always on the lookout for volunteers to drive our Code Club and school or community groups to start RAD clubs.
