Gisborne elderly and solo parents fear higher costs under social housing reforms
Gisborne beneficiary Rob said the reforms were "unfair on everyone". Photo / Zoe Mills
Income-related rent will increase from next year as part of a social housing overhaul. Minister of Housing Chris Bishop says reforms are necessary to improve fairness, but social housing tenants say it puts a further strain on already struggling households. Gisborne Herald reporter Zoe Mills spoke with tenants who shared how they might feel the impact.
Rob is a beneficiary from Gisborne who is unable to work due to health issues.
His 74-year-old father, who has chronic lung issues, moved into a one-bedroom Kāinga Ora home last year.
For the past year, 54-year-old Rob has been sleeping on the floor of his father’s home to support him as a caregiver.
The reforms came as a surprise to Rob, who called them “unfair”.
“The elderly suffer enough, and especially for low-income families and everything like that ... you’ve got to fight for everything that you want now.”
The reforms were announced last week by Minister of Housing Chris Bishop.
Income-related rent (IRR) for social housing tenants is to increase from 25% to 30% of the tenant’s income. The changes will come into force on April 1, 2027.
The reforms are expected to save the Government $387.5m with $374.3m of that to be reinvested in increasing the accommodation supplement for tenants in private rentals.
But Rob said there were other hidden costs Kāinga Ora residents had that the Government may not be considering.
“Elderly still have to rely on being picked up or getting drop-offs, meals on wheels and everything like that. And, I mean, that all adds up. It really does.”
The ministers for housing and social development were asked to comment on the concerns raised by Kāinga Ora tenants the Gisborne Herald spoke to.
Bishop’s team responded with direction to a PowerPoint publicly available on the Beehive website.
A spokesperson for Louise Upston, Minister of Social Development (MSD), responded in a statement.
“MSD provides a range of other financial supports for people with specific costs,” the statement said. “For example, support for costs of a disability can be provided through the Disability Allowance – and that can include travel costs and costs associated with prescriptions or medical appointments.
“Older people experiencing hardship are encouraged to contact Work and Income to check what they are entitled to receive.”
Impact on single parents
John (name changed for privacy reasons) and his teenage son moved into a Gisborne Kāinga Ora home about two years ago. He’s not working and receives a benefit as a solo parent. He said the move was a “blessing”.
John had been living in a motel for two-and-a-half years before he moved into the Kāinga Ora home.
“I wouldn’t put that on anyone, going through that for two-and-a-half years, anyway.”
The move meant his son could have his own room and John could have some privacy.
He is concerned at how the reforms will affect his situation.
“They’re just trying to make it harder for the lower-income people,” John said.
“We’re already finding it hard as it is … just trying to get by every week.”
John’s main costs are food and fuel. He often can’t afford to drop his son to school due to rising fuel costs.
“They’re just trying to make it worse for us. [We’re] just trying to make ends meet with what we have now.”
Rob is uncertain as to how the reforms will affect his father’s living situation and believes other solutions should be considered.
“Why not pick on the rich people? End of story. You know, all the millionaires who we’ve got in New Zealand, which we’ve got plenty of, so why can’t they give them a bigger tax bracket?”
Shannon Soughtton, group general manager service improvement and delivery for MSD, encouraged social housing tenants who were impacted by the reforms to contact their housing provider or MSD for further support.