# Evaluating the long-term effects of income assistance for material hardship among families with children

## TL;DR

This study finds that income assistance in early childhood can reduce material hardship for families with children into adolescence.

## Contribution

The study provides new evidence on the long-term effects of income assistance on material hardship using longitudinal data.

## Key findings

- Benefit receipt in early childhood reduced material hardship likelihood at later time points.
- Positive associations were found between benefit receipt and reduced concurrent hardship.
- Income assistance had lasting effects into adolescence when controlling for sociodemographic factors.

## Abstract

As a key aspect of poverty, material hardship describes day-to-day struggles in affording necessities. In explorations of policy initiatives that mitigate material hardship, evidence suggests direct income support can be effective in alleviating hardship. However, research investigating the long-term effects of income supports is limited, and it remains uncertain as to how benefit receipt may mitigate material hardship for families with children across time.

To explore the associations between income assistance and material hardship longitudinally, we utilised data from four waves of the Growing Up in New Zealand birth-cohort study (n = 5964), where family experiences were tracked between birth and adolescence. The variables of interest included mother-reported receipt of income benefits and material hardship from when the children were aged 9-months, 54-months, 8-years, and 12-years. Multilevel logistic regression analysis was employed to examine the associations between benefit receipt and material hardship in the short- and long-term. Interaction terms between benefit receipt and time were incorporated in the modelling to determine whether receiving benefits corresponded with significant changes in the likelihood of experiencing material hardship at specific time points.

The key results suggest that benefit receipt in early childhood reduced the likelihood of experiencing material hardship at subsequent time points at least until adolescence, when controlling for key sociodemographic characteristics.

These findings provide insight into the associations between early childhood income supports and reductions in the likelihood of experiencing material hardship in the long-term, to emphasise the potential for such interventions to have longstanding effects. By elucidating the associations between benefit receipt and subsequent material hardship, this research gives direction for policy interventions and timely support for families.

•Effects of benefit receipt on material hardship.•Findings show positive associations between benefit receipt and concurrent hardship.•Early childhood benefits reduced material hardship likelihood in adolescence.

Effects of benefit receipt on material hardship.

Findings show positive associations between benefit receipt and concurrent hardship.

Early childhood benefits reduced material hardship likelihood in adolescence.