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RNZ News
18-06-2025
- Business
- RNZ News
Quarter of households rely on government housing support
Just under 377,193 households receive the accommodation supplement. Photo: Unsplash / Blake Wheeler A quarter of all households rely on some form of Government support to keep the roofs over their head, and one economist says it's a clear sign that a more cohesive housing strategy is needed. Data from the Ministry of Social Development and Ministry for Housing and Urban Development show just under 377,193 households receive the accommodation supplement, which is available to help with rent and mortgage costs. Another 107,568 receive temporary additional support and special benefits. Some of those households will receive both the accommodation supplement and temporary support. Just over 6300 people are in transitional housing, 86,454 are getting income-related rent subsidies, which are paid by the ministry to public housing landlords and 598 are getting the emergency housing special needs grant. In total in New Zealand, there are about 1.2 million households living in homes they own and just under 566,000 renting households. Simplicity chief economist Shamubeel Eaqub said the numbers were equal to three-quarters of renting households, or a quarter of total households. About 25,000 households are receiving the accommodation supplement to help with mortgage payments. Child Poverty Action Group spokesperson Isaac Gunson said the data should "set off alarm bells in the Beehive". He said it showed how unstable housing was for children. "These are not just numbers, they are whānau doing everything right but still being failed by a system where incomes have not kept up with the cost of living. Many are raising children while living with the daily stress of rising rents, insecure housing, and the fear of eviction. "Every child deserves a warm, dry, secure home, but the scale of need has long outstripped supply. Thousands of families across Aotearoa need affordable, high-quality housing, and they needed it years ago. "Councils and central government must take shared responsibility for ensuring growth delivers well-connected, high-quality, affordable homes, not just more houses. When rents rise faster than incomes, more tamariki fall into hardship. "Stats NZ reports that between June 2020 and June 2024, average housing costs rose by 31 percent. Over the same period, average disposable income rose by just 24 percent." He said there needed to be more public and community housing, as well as higher incomes. "Families need a permanent fix, not temporary top-ups." Housing Minister Chris Bishop said it was evidence that the housing crisis was costly for households, and very costly for the government. "It is precisely why we need this Government's Going for Housing Growth plan." The accommodation supplement alone costs the Government about $2 billion a year. Eaqub said the way households were being supported was not working well but it was hard to unwind. "If you take it away you literally create more poverty… these are not well off people. It's not like the subsidies are generous and as a result they're somehow in an extremely positive position. These are not actually good subsidies because they're not coordinated to create good long-term solutions." He said there needed to be a way to encourage affordable housing supply that was more than giving subsidies. "We have to say we're spending this money… is there some way we could also encourage more housing to be built that remains in the pool of affordable housing?" He said the payments were pushing rents higher than they would otherwise be. Earlier, research from the University of Auckland showed the accommodation supplement was not making rents more affordable . An increase in crowding in New Zealand households also reflected the unaffordability of homes, he said. "If you look at household size in New Zealand, it hasn't been going down as much as it should for a population that's aging," Eaqub said. "The subsidy deals with the necessity of helping people have shelter… but is there a coordinated approach that ensures increasing rental house supply that remains affordable over time? The answer is no. So, much of public policy is not just one thing, it's the coordination across many things. You should help people in poverty but if you don't coordinate your approaches all you do is create a subsidy that gets bigger and bigger over time without any meaningful improvement in supply." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
NZ Herald
05-05-2025
- Business
- NZ Herald
MSD sanctions double, impact on employment unclear
Data released to RNZ after an Official Information Act request shows that there were 3015 times that a client was sanctioned, then recomplied with their obligations and then left the benefit to work. There were 210 times when a client was sanctioned and then left for work, then recomplied with their obligations. That could include people who found work and then ended up back on the benefit. Graham Allpress, group general manager of client service delivery, said sanctions and obligations were one part of a broader picture that could contribute to a jobseeker finding work. He said MSD could not provide data about sanctions that led to someone re-engaging and then finding work because it could not link the sanction and the person finding a job. 'People get jobs because they apply for them, and because they take steps to become ready for work. 'We use sanctions as a last resort if someone is not meeting their obligations, to encourage them to engage with us and get back on track by re-complying their obligations. 'In 2024, 92.8% of sanctions were lifted after the client re-complied with their obligations and got back on track. That is the purpose we use them for. 'If someone gets a benefit and they have work obligations, one of the main things they agree to do is regularly apply for suitable jobs. By meeting their obligations, they maximise their own opportunity to get a job and 'exit to work'. 'We are engaging with more jobseekers more frequently through proactive appointments and Kōrero Mahi seminars. Our support for jobseekers includes training, work assessments or work experience, and help with CVs and applying for jobs.' In 2018, the then-Labour Government produced a paper on the effects of work-related sanctions. 'Real barriers' It said that regimes less severe than New Zealand's were effective in increasing movement from benefits to work. But evidence from the UK and US was that very harsh sanctions could have adverse effects that drove people away from employment. Isaac Gunson, spokesperson for the Child Poverty Action Group, said it was unlikely that so many more people had started missing appointments. 'What seems more likely is that MSD has become quicker to cut people off, despite the very real barriers many face in attending. 'These are people doing their best in tough circumstances. They may not have access to childcare, a working phone, or may simply be confused by the system. 'Pushing people off income support doesn't make the job market fairer or more accessible. It just assumes success is possible while unemployment rises and support systems become harder to navigate.' Economist Shamubeel Eaqub said there should be clearer ways to determine whether sanctions were having the effect intended. 'How can we be confident they are doing their job? 'I have no problem with them pulling these levers if they're effective. If they're creating a better outcome then of course we should be doing it. But we shouldn't just punish people.'
