Calls are being made for fundamental changes to how the welfare state approaches poverty.

The Child Poverty Action Group has released a report this morning into the state of the welfare safety net.

CPAG spokesperson Susan St John says over the last 30 years governments have adopted a dangerously punitive approach to welfare and poverty.

"There has to be understanding of the attacks that have undermined the welfare state, and also the fundamentals on which the welfare state is based."

St John says charities like Variety and Kidscan are being overwhelmed by demand not being met by government assistance and that is no way to run a decent economy.

"We shouldn't be looking for an increasingly large charitable sector to service the very basic needs, that's not a good way to do it.

"[We have] huge queues at foodbanks, we've got overstretched social services [and] budgeting services. The demand on the charities is growing and growing, and many people are finding that's not a New Zealand they can be proud of."