What you need to know about the new rules to tighten emergency housing thresholds

The new rules, which took effect Monday, make it harder and more difficult to get into emergency housing.

Ministers said in March they were introducing a number of changes to achieve their goal of being largely free of emergency housing.

The changes are revealed in a report from government officials to ministers, obtained by RNZ. The report is titled “Tightening the barriers to entry into emergency housing” and details how the government is trying to cut the number of people living in emergency housing.

Here’s what you need to know.

Who is eligible for emergency housing?

Emergency housing is for people who have nowhere else to go.

They can apply to the Ministry of Social Development for emergency housing. Once their application is accepted, the Ministry of Social Development will pay for these people to stay in emergency housing through the Emergency Housing Special Needs Grant (EH SNG).

Entry becomes more difficult

To qualify for emergency housing, a person must:

• have an urgent housing need which means they cannot remain where they are and are unable to obtain other suitable accommodation (MSD decides what is suitable accommodation)
• Earn less than the weekly income threshold, which varies: for example, $1,020.90 for a couple with or without children and $898.56 for a single parent with two or more children
• Have a bank balance of no more than $1,338.90 (for a single person without children) or $2,230.96 (for a couple or single parent)
• Be a New Zealand citizen or permanent resident

None of this is new. But here’s the thing: People now have to prove with “supporting evidence” that they meet the criteria. If they can’t, their application may be rejected.

MSD can also consider whether the applicant caused or contributed to their need – for example, whether they are unable to stay where they are because of bad behaviour. However, this is not mandatory because assessing whether someone is at fault is subjective and “may exclude people who truly need help”, MSD said.

The consequences of not following the rules are more serious

People living in emergency housing must meet certain obligations, which come into effect after their eighth day of residence to give them time to sort things out.

Applicants must:

• Contact support services if they are referred
• Make “reasonable efforts” to find alternative accommodation
• Pay emergency housing costs – 25% of their income or 25% of the Jobseeker Support Benefit they are eligible for, whichever is higher.

Again, these rules already exist – but the Ministry of Social Development has rarely been able to enforce them because of a rule that says it cannot refuse emergency housing if it would make the applicant worse off, cause them hardship or endanger their life. MSD officials have advised ministers: “A refusal will almost always make the applicant worse off in the short term.”

This rule has now been removed so MSD can be more strict in refusing to provide emergency housing to people if they don’t meet their obligations.

However, the Ministry of Social Development will consider whether there is a “good reason” for someone not to meet these responsibilities – for example, if someone is fleeing a violent or unsafe environment, has a physical or mental illness, or if childcare or transport arrangements have failed.

New warning system

If these obligations are not met, a new warning system kicks in. After two warnings, you’re out.

If someone applies for emergency housing and they didn’t meet their obligations last time, they will receive a first warning. If this happens again, they will receive a final warning. Next time, they will be refused emergency housing and will not be allowed to apply again for 13 weeks. However, these warnings will not be removed from their next application.

Rejected

If someone is refused emergency housing because they have failed to meet their obligations, MSD will help them connect with government and community support services and help them find other options – including accommodation subsidies (which can cover part of the rent).

Applicants can seek a formal review, and if that review finds they should not have been rejected, the “failure” is not counted.

Why are these changes being made?

Housing Minister Chris Bishop called emergency housing one of the biggest public policy failures in the country’s history, leaving thousands of children growing up in motels. He has committed to ending the “motel generation”.

The number of people living in emergency housing has surged as the government reshuffled during the coronavirus pandemic. Those who have nowhere to go stay in motels During the nationwide lockdown.

It’s worth noting that the number of people in emergency housing has been falling since then, and has fallen more rapidly in the past few months. In the last year, the number of people in emergency housing has more than halved: in July 2024, there were 3,330 people in emergency housing, down from 7,554 in July 2023.

But it’s still expensive — as of March, the government spent Approximately US$340 million per year Provide emergency housing. The government and housing advocates insist that no one should be living in a motel for a long time.

But the Opposition has criticised the proposed changes to the emergency housing system, saying (https://www.rnz.co.nz/news/political/510999/government-confirms-emergency-housing-plan-shake-up

It would put people sleeping on the streets).

In fact, RNZ reported last week that MSD officials warn ministers Making these changes now – before there are enough other housing options – could push more people into homelessness. One Wellington charity says this is already happening.

But Associate Housing Minister Tama Potaka said the government had mitigated that risk and insisted those who needed support would receive it.

“As long as people have a genuine housing need and continue to meet their responsibilities, they will continue to be eligible for emergency housing support.”