Rising rents and mortgages are helping to push children below the poverty line as the Government's welfare efforts are yet to make a significant difference.

The latest child poverty numbers show a slight reduction in the number of children living below most poverty thresholds.

But there has been an increase in material hardship, with 4100 more children living without such items as two good pairs of shoes, and fresh fruit or vegetables in the home.

STUFF The child poverty figures for 2018-19 were released by Stats NZ on Tuesday.

The numbers, released by Statistics NZ on Tuesday, are the first to show any change since Prime Minister Jacinda Ardern set a three-year, 70,000 child target — shrinking the 16.5 per cent of children in poverty to 10 per cent — and launched the $5.5 billion Families Package.

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Ardern on Tuesday celebrated the numbers as "moving in the right direction", saying it showed her government is on track to meet its child poverty targets.

LYNN GRIEVESON/NEWSROOM Prime Minister Jacinda Ardern appointed herself Minister for Child Poverty Reduction, and has legislated child poverty targets for the Government to meet.

Children's Commissioner Judge Andrew Becroft said he had "cautious optimism" that the fortunes of New Zealand's poorest children were changing.

"You couldn't say, 'pass or fail', on these results ... I don't think any New Zealander will be celebrating those figures," he said.

Child poverty is measured in three ways. The first measure, children living in homes with income less than 50 per cent of the median (currently $1016 a week) before housing costs, counted 16.5 per cent or 183,500 children in 2018.

CHRISTEL YARDLEY/STUFF Children's Commissioner Andrew Becroft said the latest figures had him "cautiously optimistic".

This measure dropped 1.6 per cent to 168,500 children living in impoverished homes in the year to June 2019.

A second measure, 50 per cent of the median income after housing costs, showed rents and mortgages are push more than 60,000 children below this line.

The 253,800 children first counted by this measure reduced 2 per cent in the year to June 2019, to 235,400 children.

But one in eight children were counted as living in material hardship, defined through a series of indicators such as children living in homes that lacked shoes, the ability to see a doctor, or the ability to pay power bills.

This measure registered a 0.4 per cent increase, to 13.4 per cent.

Māori and Pacific children were heavily represented in the figures, one in five children living below the median income before housing costs line. This compares to one in nine European children.

Nearly one in four Māori children lived in material hardship.

The margins of error for each of the results were greater than the adjustments measured.

Stats NZ principal statistician Diane Ramsay said she could not be confident there was a downward trend in the figures due to this margin, and results in the coming years would clarify this.

The survey was taken between July 2018 and June 2019, and people were asked to provide their income level for the year prior, meaning the impact of the July 2018 Families Package will not be visible in the numbers for up to 18 months.

Treasury has estimated the number of children in poverty will reduce between 10 per cent and 12 per cent due to the Government's efforts.

WAIT AND SEE

Ardern, in a written statement, said the latest figures showed her Government's Families Package, which has bumped up incomes through tax credits and targeted assistance, was beginning to lift children out of poverty.

"But we know too that income is only part of the solution and that free lunches in schools are also helping kids to learn and easing pressure on families," she said.

Becroft said the Government needed to spend its surplus and increase benefit levels to drive down the number of children in poverty.

But he acknowledged this would not stop rising housing costs pushing people into poverty.

"We've allowed housing stocks to erode, we've never had more emergency housing costs or benefits granted, the waiting lists are high."

Victoria University professor of public policy Jonathan Boston said he expected to see at least another 2 per cent reduction when the next round of child poverty figures are released.

"There are some flies in the ointment: Coronavirus, if it has a dramatic impact in the coming months, it will potentially impact on this data."