Prime Minister Christopher Luxon is digging in over his choice to collect a $52,000 allowance to live in his own mortgage free apartment in Wellington.
He says he's entitled to the payment and describes it as well within the rules.
But it comes as the Government is trying to cut costs and making savings.
In the last few minutes Prime Minister Christopher Luxon has done a u-turn, he says he will pay back what he's received since taking the job, about $13,000.
He says he doesn't want the publicity around it to become a distraction.
Deputy political editor Craig McCulloch reports.