Many people with intellectual disability face material hardship

04 September 2026

In June 2025, IHC released ‘The Cost of Exclusion: Hardship and People with Intellectual Disability in New Zealand’. This report examines material hardship experienced by people with intellectual disability in New Zealand.

Material hardship means not being able to afford the things needed for a reasonable standard of living. This can include going without essentials, struggling to pay bills, or finding it difficult to cover unexpected costs.

The report uses quantitative and qualitative data. Quantitative data came from linked administrative and Household Economic Survey (HES) data in the Integrated Data Infrastructure (IDI).

Qualitative insights came from in-depth interviews with:

adults with intellectual disability
their families
caregivers who had raised a child with intellectual disability.

We have summarised the key findings. This summary also uses supplementary data IHC provided to Whaikaha.

You can read the full report on the IHC website: The Cost of Exclusion: Hardship and People with Intellectual Disability in New Zealand external URL

People with intellectual disability more likely to experience hardship and financial strain

The report looked at how common material hardship was among people with intellectual disability. It found that 18.8% of people with intellectual disability were living in material hardship, compared with 7.8% of people without intellectual disability.

Many people with intellectual disability also experienced financial difficulties:

24.0% had less than 50% of the median equivalised disposable household income after housing costs, compared with 13.5% of people without intellectual disability
18.2% did not have enough money to meet everyday needs, compared with 9.2% of people without intellectual disability
42.1% would not be able to pay an unexpected and unavoidable bill of $500 within a month without borrowing, compared with 17.9% of people without intellectual disability.

Median equivalised disposable household income after housing costs is the amount of money available to a typical household after housing costs have been paid. It is adjusted for household size and composition so incomes can be compared fairly across households.

Many people cannot afford basic necessities

Many people with intellectual disability had a lower standard of living because of financial difficulties.

33.0% postponed visits to the dentist, compared with 22.5% of people without intellectual disability
29.5% did not have home contents insurance, compared with 14.1% of people without intellectual disability
11.3% went without or cut back on fresh fruit and vegetables, compared with 4.1% of people without intellectual disability.

Financial strain also affected children with intellectual disability (aged 0-17 years).

26.0% did not have friends around to play and eat with from time to time, compared with 8.7% of children without intellectual disability
21.2% had to continue to wear worn-out shoes or clothes (or items of the wrong size), compared with 10.7% of children without intellectual disability
13% were unable to attend a school trip or other school event, compared with 2% of children without intellectual disability
11.2% did not have fresh fruit and vegetables daily, compared with 4.9% of children without intellectual disability.

Disparities in housing situation and quality

People with intellectual disability also experienced differences in their housing situation. Compared with people without intellectual disability, people with intellectual disability were more likely to live in:

rental housing (53.1% compared with 34.6%)
Kāinga Ora housing (17.6% compared with 4.8%)
the most deprived housing quintile (the areas of New Zealand with the highest level of socioeconomic deprivation) (35.7% compared with 19.5%).

There were also disparities in housing quality outcomes. People with intellectual disability were more likely than people without intellectual disability to live in:

damp or mouldy homes (32.4% compared with 26.0%)
houses that are difficult to keep warm in winter (30.9% compared with 21.9%).

Adults with intellectual disability less likely to be working

Working-age adults (aged 18-64 years) with intellectual disability were less likely to be employed.

Around 1 in 5 were in paid employment in the past year, compared with 3 in 4 people without intellectual disability.

They were also more likely to live in households where no one is working (38.4%), compared with 16.4% of people without intellectual disability.

Benefits may not cover the full cost of disability

Many people with intellectual disability lived in a household receiving an income-tested benefit. This included:

38.7% of children with intellectual disability (aged 0-17 years)
more than 80% of adults with intellectual disability under the age of 65 years.

These benefits provide support to people with intellectual disability, but they may not cover the full cost of disability. Interview participants often reported hardship even while receiving a benefit.

Hardship is often linked to other disadvantages

Families of children with intellectual disability who were experiencing material hardship often faced disadvantages in other areas of life. For example, families struggling financially also found it hard to access education and healthcare

Families most affected by these challenges often:

were single-parent
had high support needs
lived in provincial or isolated areas.

Families were often able to cope better when they:

received early diagnoses and coordinated interventions
had stable housing and strong support networks.

Families with multiple risk factors were more likely to experience disadvantage, as these factors can build on one another.

About the data

Data sources

The Household Economic Survey (HES) is a nationally representative survey run by Stats NZ. It measures the economic wellbeing of New Zealanders.

Researchers linked HES data with administrative data in the Integrated Data Infrastructure (IDI). This is a large research database held by Stats NZ. It holds de-identified data about people and households.

Integrated Data Infrastructure – Stats NZ external URL

How researchers identified people with intellectual disability

Researchers used linked IDI data to identify people with intellectual disability. They included people who:

had a diagnosis of intellectual disability, or
had received services or supports associated with intellectual disability.

Material hardship

Researchers measured material hardship using the DEP-17 index. The index measures whether someone is going without, cutting back, or facing financial strain in 17 areas of basic need.

A person is considered to be experiencing:

material hardship if they experience deprivation in 6 or more areas
severe material hardship if they experience deprivation in 9 or more areas.

Measuring child poverty: Material hardship - Stats NZ external URL

Sampling

Researchers combined 4 years of HES data, covering 2019/2020 to 2022/2023. The sample included 138,318 people, including 789 people with intellectual disability.

Researchers interviewed 19 people from 13 households. Participants included 12 caregivers of children with intellectual disability and 7 adults with intellectual disability. Researchers invited participants through IHC's communication network.

The HES surveys people in private households. This means the survey did not include people with intellectual disability living in residential care or in supported living arrangements.