Housing Minister Chris Bishop wants to overhaul the social housing system, including changing how it assesses who gets homes and exploring ways to encourage people to eventually leave – potentially with duration limits. 

The Government is also adjusting financial accommodation assistance with the intention of reducing the gap in support that those in social housing get compared to those with similar needs living in private rental homes. 

This will have the effect of cutting the average support New Zealanders in social housing receive by about $31 a week, while the majority of those in private rentals who also get some form of accommodation help will see their support increase. 

The Government’s analysis shows 129,000 families (84,000 in social housing and 45,000 outside) will be worse off on average by $24 a week, while 111,000 will be better off by about $15 a week. 

Bishop believes reform over about three to five years is necessary to improve fairness and reduce dependency, arguing that many people who are in genuine need are not getting homes because of systemic issues. 

They include people currently sleeping rough, with mental health issues, and facing discrimination in the private rental market. 

Bishop says he recognises that reforming the system will involve “hard choices” and could be difficult for some, but “change is needed”. 

“The current system is unfair, costly and not targeted enough to those with the greatest need. 

“We want a system that supports people who need help, while also backing people to move forward where they can and making sure support is available for others who need it.” 

To demonstrate what it describes as dependency on social housing, the Government says about 30% of tenants have been in a social home for more than a decade, with most tenants having no meaningful review of their needs. 

More than 1100 tenants are currently paying market rent for their social homes and are not receiving a subsidy, yet they are taking up a home that could go to someone else, the Government argues. 

About 29% of households in social housing have enough income to manage lower-quartile private rents and modest expenses, it suggests. 

This is prompting Bishop to explore ideas to improve the flow of people out of social housing. 

He believes there needs to be a mindset change from viewing social housing as something for life, to something reflecting the greatest need. He acknowledges, though, that some people will need a social house for life. 

Ideas being considered include duration limits (with exemptions in some cases), more responsibilities for tenants, targeted support to help tenants overcome barriers, and regular check-ins. 

Bishop told the Herald he is confident this won’t lead to more homelessness, saying the Government provides extensive support to those in need, and more rough sleepers may be able to get a home as a result of these reforms. 

His political opponents have argued this term that the Government’s actions, particularly in emergency housing, have exacerbated homelessness. 

A new social housing assessment will be designed with the intention of ensuring that those who face “severe and persistent barriers” to getting a home are prioritised. 

Currently, the assessment puts emphasis on affordability, but Bishop wants to see greater consideration of the barriers people are facing to finding a private home. Those barriers include a lack of suitable homes (such as for people with disabilities) and challenges such as mental health and addiction issues. 

Affordability will remain relevant, but the Government believes that, if that is someone’s main issue, it could be dealt with through a subsidy, like an accommodation supplement, rather than giving them a social home. 

Another issue the minister is identifying is that he says people with similar financial needs get more support if they are in social housing compared to those in private rentals. 

“On average, social housing tenants on a main benefit have $105 more a week left after housing costs than comparable private renters receiving the Accommodation Supplement,” Bishop says. 

He wants to see that gap narrowed, so people are not incentivised to stay in social housing to get more Government support. 

That is where the Government’s changes to the accommodation support come in. 

At the moment, social housing tenants and those in emergency and transitional housing pay a minimum Income Related Rent (IRR) contribution. This is currently set at 25% of their income, but from April next year will move to 30%. 

That has the effect of 84,000 families in social housing having to pay $31 a week more. The change will be phased in over 12 months at each tenant’s annual review or their next notification of change of circumstances. 

“It will increase rents for around 84,000 households by an average of about $31 a week from next year, but even then, most social housing tenants will still generally pay less than comparable households in the private market,” Social Development Minister Louise Upston says. 

This change, which is being announced ahead of next week’s Budget, is expected to save the Government about $387.5 million over four years. 

However, the Government is also increasing the Accommodation Supplement rates, which help with rent, board or the cost of living at home. 

That support will increase by between $10 and $30 a week, costing $374.3 million over four years. 

Additionally, the maximum Temporary Additional Support (TAS), a hardship payment for those who don’t have enough to afford essential living costs, will be reduced. This will generate about $195.6 million in savings over four years. 

This reform is expected to take up to five years, with Government officials planning consultation with the sector over the coming months. 

Early next year, subject to the result of the election in November, the Government plans to confirm the policy proposal. That would include the development of a new assessment and ideas for improving the flow of people out of social housing. 

Jamie Ensor is the NZ Herald’s chief political reporter, based in the press gallery at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. He was a finalist in 2025 for Political Journalist of the Year at the Voyager Media Awards.