The Salvation Army is warning proposed social housing changes could push thousands of struggling families deeper into hardship, with concerns the reforms may increase homelessness and place further pressure on vulnerable whānau already battling the cost-of-living crisis.
Dr Bonnie Robinson, Director of The Salvation Army’s Social Policy and Parliamentary Unit, says raising income-related rents and tightening eligibility criteria risks shifting financial pressure onto those least able to absorb it.
The warning follows Government proposals that would increase income-related rents for social housing tenants from 25 percent to 30 percent of household income. Analysts estimate around 84,000 households could be financially worse off under the changes.
Housing advocates say the increases effectively operate like a “tax on the poor,” reducing the already limited disposable income many families rely on to cover essentials such as food, power, transport and healthcare.
Community organisations fear many households are already living week-to-week, and even relatively small increases in rent could force difficult choices between heating homes, feeding tamariki and meeting basic living costs.
Concerns are also mounting over proposed changes to housing eligibility rules, particularly suggestions that low income alone may no longer be enough to qualify for social housing support. Critics argue stricter eligibility criteria could exclude vulnerable people facing housing insecurity, overcrowding or unstable living conditions who may not meet narrower assessment thresholds.
Dr Robinson says the changes risk increasing pressure across the wider housing system, including emergency housing providers, foodbanks and community support services already struggling to meet rising demand.
The Salvation Army is calling for a more compassionate approach focused on reducing poverty and housing insecurity rather than shifting financial burdens onto low-income tenants. Advocates say long-term solutions should include expanding affordable housing supply, increasing income support, strengthening tenant protections and addressing the root causes of homelessness.
The debate comes amid continued pressure on New Zealand’s housing sector, with rising rents, high living costs and limited affordable housing availability continuing to affect thousands of households nationwide.
Housing and social service organisations warn the consequences of increased housing stress are likely to extend beyond financial hardship, with growing risks to mental health, family wellbeing, educational outcomes and long-term social stability.
The Government maintains reforms are aimed at improving sustainability within the social housing system, but critics argue the proposals could deepen inequality at a time when many whānau are already struggling to stay afloat.
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