4 Apr 2025

Third of emergency housing applications being rejected by MSD

8:46 am on 4 April 2025
An aerial view of an Auckland suburb showing many blocks of housing.

MSD is also processing far fewer emergency housing applications and declining more of them. Photo: RNZ / Kate Newton

The Ministry of Social Development is declining more than 90 emergency housing applications a month because people have "caused or contributed to their immediate need".

It is turning down 31 percent of applications in total, according to data released under the Official Information Act, after the government introduced stricter rules and entry criteria last year.

In February it declined 507 applications out of a total of 1602 - a steep increase compared to August last year, when it declined roughly 10 percent of applications.

In March 2023, it declined just 3 percent of applications.

The figures show MSD is also processing far fewer emergency housing applications - from 9486 in March 2023, to 3972 in August 2024, to 1602 in February.

At that time, the data shows MSD began turning people away on the basis they had "caused or contributed to their immediate need".

By February, that made up 18.6 percent of all declined applications - 93 out of 507 in total.

Christchurch housing advocate Kevin Murray said some of his clients have been denied support after fleeing violent situations.

"Sometimes there's a dispute at home between people. There's domestic violence. People walk out, and as a result of domestic violence, they've contributed to their own cause because they had a house. They can't stay in that house because of domestic violence.

"So they go to WINZ to get assistance and they're begging them for assistance. I've seen all you know, sitting there crying, asking them for help," he said.

MSD disputed that - saying if someone leaves their housing due to family violence, they will not be considered to have caused or contributed to their immediate emergency housing need.

It said that criteria is used when people have given up their tenancy "without a good reason and without making other arrangements" or if they were evicted due to intentional damage, violence or theft.

But Aviva, formerly called the Christchurch Women's Refuge, said it, too, is hearing from domestic violence victims who can't get into emergency housing.

General Manager Gwenda Kendrew said it is usually a matter of tweaking that person's application to get the help they need.

"We are hearing that. But sometimes it's about working with people and helping them to approach Work and Income with all the information.

"Not everybody is expecting to be in this situation, so they don't necessarily know what to ask for, and sometimes the questions that they're asked are quite direct and people aren't aware of how to talk the story."

The most common reason MSD turns people away from emergency housing - in 30 percent of all declined applications in February - is that their need "can be met in another way."

MSD considers if people can stay with whānau or friends.

Applications are also denied because the person doesn't have a qualifying need (8.3 percent of February applications), aren't in an emergency situation (7.3 percent) or the circumstances could have been reasonably foreseen (5.9 percent).

MSD said about 85 percent of emergency housing applicants do receive some sort of housing support, such as an accommodation supplement, grants to cover rent, or paying bond and rent in advance for a new place.

Where possible, it refers people to transitional housing which offers "more stability and tailored support", it said.

However, government data shows MSD only added 24 more places transitional housing between August and February - 6422 in total.

Meanwhile, accommodation supplement numbers rose less than six percent in the most recent reporting period, from August to December.

Community Law chief executive Sue Moroney said the figures don't add up.

"We'd like to think that the substantial reductions in applications for emergency housing is because there's suddenly more housing available. But the corresponding and obvious increase in homelessness on our streets tells us otherwise," she said.

Lieutenant Colonel Ian Hutson from the Salvation Army's Social Policy and Parliamentary Unit said his organisation was also deeply concerned about how difficult it is for people to get into emergency housing.

"We carried out a survey across the country and discovered that across our services, and some non-Salvation Army services, it was now common throughout the country that people were unable to access emergency housing through MSD, who had tightened up considerably," he said.

"People are ending up in various unsatisfactory situations like living in tents or cars, or wherever they can go, overcrowded households. Many of our services are quite desperate, actually, trying to find ways to help these people. We can't see a way through the system at the moment to meet the needs of many of the people that come to us."

Kevin Murray believes the drop in the number of applications is because MSD is steering people away from applying for emergency housing in the first place.

In February, MSD data shows there were 459 households in emergency housing, compared with 1215 in August 2024.

The government denies that stricter emergency housing rules have led to an increase in homelessness. https://www.rnz.co.nz/news/political/544438/luxon-denies-stricter-emergency-housing-rules-have-increased-homelessness

The total number of households in emergency housing plummeted to 459 in February, compared with 1215 in August last year.

"We are very proud of the work we've done on emergency housing," Prime Minister Christopher Luxon told reporters last month.

MSD declined RNZ's interview request, providing a statement from Housing General Manager Karen Hocking instead.

"Emergency housing is a last resort and our first move is to look at all their other options to avoid homelessness," she said.

"If someone who applies is eligible for a different and more suitable type of support, we will provide that instead."

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