Thousands of low-income New Zealanders are set to be affected by upcoming welfare and housing changes announced by the Government ahead of next week’s Budget.
According to a report by Stuff, alongside a major overhaul of the social housing system, Housing Minister Chris Bishop confirmed changes to accommodation support that would take effect from 2027. The reforms would require social housing tenants to contribute more towards housing costs, while increasing accommodation supplements for low-income households renting privately.
Government modelling released with the announcement estimated that 111,000 families in private rentals would be financially better off under the changes, while 84,000 families living in social housing would be worse off.
Included in the package was a reduction to the maximum Temporary Additional Support (TAS) payment rate, a move expected to save the Government $195.6 million over four years.
According to Stuff, under the new policy, the maximum TAS payment will drop from 30% to 25% of a recipient’s main benefit payment from April 2027. The cap for superannuitants and veteran pension recipients will remain unchanged at 30%.
Bishop said the change would “better reflect its original purpose as temporary hardship support”.
Temporary Additional Support is designed to help low-income New Zealanders cover essential living expenses such as rent, transport, child support, food and utilities. Eligibility is based on whether a person’s essential expenses exceed their income, Stuff has reported.
Recipients can receive the payment for up to 13 weeks before reapplying and showing they are taking steps to reduce costs or increase earnings. As of September 2025, around 11,000 people were receiving TAS assistance.
The reforms will also remove government-mandated child support liabilities from the list of allowable expenses used to calculate eligibility, as reported by Stuff.
Budget documents accompanying the announcement said the move would reverse “unintended increases in line with benefit increases under the previous Government”, following a 7.22% rise in benefits introduced by the former Labour government in 2023.
The changes have drawn criticism from opposition parties and advocacy groups.
Green Party social development spokesperson Ricardo Menéndez March said TAS was often the final safety net for struggling households.
“I have seen first-hand the difference it makes for people to meet the cost of food, transport to get to medical treatment, or the cost of medicine,” he said, Stuff has quoted.
Labour’s social development spokesperson, Willow-Jean Prime, accused the Government of failing to understand the financial pressures facing vulnerable New Zealanders.
“The Government’s priorities are broken, they’re cutting jobs, raising rents for people in social housing, and now, taking away support from the least well-off New Zealanders,” Prime said.
Poverty Free Aotearoa advocate Pat Hanley also criticised the policy, describing the changes as “nasty stuff” and warning disabled people would be among the hardest hit.
“TAS is essentially there because the level of benefits is too low to meet the ongoing, everyday needs of many New Zealanders,” he said, as quoted by Stuff.
Hanley said rising transport and living costs were already placing severe pressure on beneficiaries and disabled people.
“TAS is used to top up what that support can’t cover. I am very concerned that this reduction means they won’t be able to get the help they need,” he said, Stuff has quoted.