As you will have heard, the Salvation Army has released its 18th State of the Nation report and it paints a grim picture. New Zealanders are worse off than they were a year ago in terms of food security, employment, and housing, according to the data. Mike Hosking made the point this morning that the Sallies report seldom makes for good news. It's not often you're cracking the champagne going ‘well that’s sorted child poverty – done, homelessness solved’. The Sallies are focused on caring for those who are struggling for whatever reason – for those who have slipped through the cracks, for those whose needs are complex and varied. But according to the report author, it's the worst set of results he's seen in six years of writing the report.  

This doesn't surprise me. Times are tough for people with jobs, without drug and alcohol addictions, with homes and children in education, you can only imagine how tough it is for people who have limited choices. The cruel reality of a recession is that when more people than ever before are looking for help, fewer people are able to give it. Government funding has been reduced, and people are finding it more difficult to contribute to charitable organisations. The number of people receiving income support in 2024 exceeded 400,000 —a record high— and unemployment returned to levels seen at the height of the Covid-19 pandemic in 2020.  

Yes, it's called chickens coming home to roost. This is what happens after soaring inflation and enormous budget blowouts. It's awful, and it's hard, and it's painful, and those who are struggling already suffered disproportionately. Salvation Army Principal Social Policy Analyst and the report author Paul Barber spoke to Mike Hosking this morning and said a stable home is vital to the well-being of a community.  

“We've seen a really mixed story around homelessness and housing. We've seen a fantastic increase in the number of public houses, so social housing available to help people who are waiting for or need a home. But on the other hand, we've also seen a disturbing rise in the street homelessness, as people's emergency housing support’s been ended.  

“Our view is it's important to be beside people, to help them get stability in their lives and to help people have their lives transformed. And what we see when social housing is doing well, that's exactly what happens, and in fact, that's why we strongly support increasing community and Kainga Ora government owned public housing, so that we can actually help people, help end homelessness. That's the dream and we've seen a lot of progress in that space, and we'd really like to see that continue.” 

Yes, we certainly saw Labour pushing out as many state houses as Kainga Ora could build in the last years of its government, and hopefully Paul Barber heard Simon Moutter when he came in to explain the vision of Kainga Ora last week. That they want to have a sustained building program that's not subject to ebbs and flows, that it's a sustained building program that will allow houses to be built for those who need them.  

Paul Barber said what we need is more compassion and more help for those people who are really, really struggling, and that is a lovely sentiment and what you would expect from the Salvation Army. But ultimately, it is not terribly helpful. Compassion doesn't feed a family. You can have all the compassion in the world for people who are doing it tough, but if you haven't got any money leftover in your pocket at the end of the week you can't do anything about it.  

And yes, of course more help is needed for people who are struggling, but help costs money, and where does that help come from? When a country is in recession, when people who do have jobs and pay cheques have less in their pockets every week, there isn't the money to fund the sort of programmes that Paul Barber is talking about. It didn't just happen. It's not as though there's been a change of government and all of a sudden there have been resets and we've decided that we don't care about people, and that we don't care about social housing, and that we don't care about homelessness.  

What we need far more than compassion is a productive, thriving economy so that people who can, can look after themselves. And people who can't, will benefit from assistance provided by a government that's got plenty of money flowing into its coffers through exports, through increased taxation, and from caring donors who've got more than enough and are happy to share.