Labour has ruled out increasing rents for people living in state and social housing if it wins this year’s General Election, promising instead to keep rents affordable while rejecting higher subsidies for private landlords.
The commitment comes in response to the Government’s Budget 2026 proposal to increase the income-related rent paid by social housing tenants from 25 percent to 30 percent of household income from 2027, while also increasing the Accommodation Supplement for people renting in the private market.
Labour says it would reverse that policy, arguing social housing exists to provide stability and affordability for some of New Zealand’s most vulnerable whānau rather than becoming another source of financial pressure.
The party says it will retain the current income-related rent settings for Kāinga Ora and Community Housing Provider tenants, ensuring families are not asked to pay a greater share of their income at a time when many are already struggling with the cost of living.
Labour has also ruled out increasing the Accommodation Supplement as a substitute, arguing that lifting the payment without addressing housing supply risks driving more public money into rising private rents rather than making housing genuinely more affordable.
Housing continues to be one of the defining issues of the 2026 election campaign, with rising rents, long waiting lists for public housing and the ongoing shortage of affordable homes affecting thousands of households across Aotearoa.
The issue is particularly significant for Māori, who remain disproportionately represented among people on the public housing register and among those experiencing severe housing stress. Community organisations have consistently argued that affordable, secure housing is fundamental to improving health, education and economic outcomes for whānau.
Labour says its approach is based on protecting tenants from additional financial hardship while continuing to invest in expanding the supply of social and affordable housing. The party argues that increasing rents for low-income households would undermine the purpose of public housing and place further pressure on families already struggling to meet everyday costs.
The announcement sharpens the political divide over housing policy as parties outline competing approaches ahead of the November election. While the Government says its changes are intended to create greater consistency between public and private housing assistance, Labour says social housing tenants should not bear the cost of wider housing system reforms.
With housing affordability expected to remain a major election issue, the debate over who should shoulder the rising cost of accommodation is likely to remain at the forefront of the campaign.
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