One in five children now living in poverty, Barnardos warns

Australia’s child poverty crisis has reached breaking point, with new data revealing that more than 820,000 children are now living below the poverty line, the highest figure in more than 20 years.

The analysis, released by Barnardos Australia, shows that one in five Australian children experience poverty up from one in seven a decade ago. The number of children living in poverty rose by 102,000 between 2021 and 2022 alone, driven by rising living costs and stagnant wages.

“This is a crisis that’s completely preventable,” said Grace Hong, Barnardos Australia Centre Manager.

“Families are being forced to skip meals, and children are bearing the brunt. That can look like missing out on school, social connection, and the basic joys of childhood.”

The role of income support and housing insecurity

The impact is most severe for children in single-parent households, where poverty affects 44 per cent of children, more than triple the rate in two-parent households.

Housing costs have further compounded the issue. Between 2020 and 2022, rent for lower-income families rose 17.8 per cent, compared to 11.2 per cent for the general population.

Barnardos argues that policy design is directly contributing to hardship. For example, 94 per cent of Parenting Payment recipients are women, yet payments are cut significantly when the youngest child turns eight, often pushing families into deeper financial stress.

“The system is failing single mothers and their children, and we cannot accept that in Australia,” Ms Hong said.

Implications for the early childhood sector

Early childhood education and care (ECEC) services are often the frontline responders to child poverty, providing access to safe spaces, learning opportunities and referrals to family support. However, services are also under pressure as more families face housing instability, financial insecurity and complex needs.

When children arrive hungry, stressed or without consistent care, their ability to learn and thrive is compromised, highlighting the urgent need for wraparound policies that integrate ECEC, health, housing and income support.

Barnardos is calling for immediate action across five policy areas:

• Adequate income support for families, particularly single parents
• Affordable, accessible early learning and child care
• Increased rental assistance and long-term housing solutions
• Crisis accommodation for families escaping violence
• Tailored services for families experiencing intergenerational disadvantage

Every child in Australia deserves to thrive and enjoy their childhood,” Ms Hong said. 

“Through early intervention and a real coordinated national response, such as changes to income support payments, families will be empowered to break the cycle of disadvantage.

“Child poverty is not inevitable. We know what works and we need to see actual change from our governments.”

A call for coordinated national response

“This crisis doesn’t need to exist,” Ms Hong said. “With the right mix of early intervention, adequate support and policy reform, we can break the cycle of poverty, but it requires a genuine national commitment.”

The early years are a critical window in a child’s life, and poverty during this time has long-term consequences. For the ECEC sector, addressing child poverty is not just a social imperative, it is foundational to achieving the outcomes set out in the National Quality Framework and Australia’s broader early years strategies.