Government Launches Five-Point Plan to Support Rough Sleepers into Homes

Homelessness, particularly rough sleeping, has persisted in New Zealand for decades and has become more visible during periods of economic hardship.

The Government has unveiled a five-step plan aimed at reducing rough sleeping and providing stronger pathways into stable housing for some of New Zealand’s most vulnerable people. Housing Minister Chris Bishop and Associate Housing Minister Tama Potaka announced the measures, describing them as “immediate actions” to improve housing outcomes and restore dignity to people experiencing homelessness.

Homelessness as a Long-Standing Challenge

Homelessness, particularly rough sleeping, has persisted in New Zealand for decades and has become more visible during periods of economic hardship. While official figures are difficult to establish due to the transient nature of rough sleeping, the Government acknowledges it remains a serious issue affecting urban centres across the country.

Minister Bishop said the Government already invests more than half a billion dollars annually in homelessness-specific support programmes such as Housing First, Rapid Rehousing, transitional housing, and emergency accommodation. When combined with broader housing support—including the Accommodation Supplement and Temporary Additional Support—the total annual spend exceeds $5 billion. Despite this, ministers stressed more targeted action is needed for those living without shelter.

Action One: Expanding Housing First

At the heart of the new strategy is an expansion of the Housing First programme, which has proven successful in helping people with chronic homelessness transition into permanent housing while receiving tailored wraparound support. The Government will immediately provide an additional 300 social homes dedicated to Housing First clients, with a focus on rough sleepers.

Unlike new builds, these homes will be leased from the private rental market in major cities such as Auckland, Hamilton, Wellington, and Christchurch. This approach is designed to bypass construction delays, allowing providers to quickly place individuals into safe and stable housing.

Action Two: Boosting Support Services

The second action involves a $10 million funding boost for frontline support services. Minister Potaka explained that the money will be directed towards established initiatives with a track record of effectiveness, noting that solutions vary by location. “What works in Christchurch may not work in Hamilton,” he said, adding that officials will work closely with trusted providers to allocate funds where they are most needed.

Action Three: Improving Transitional Housing Efficiency

The third measure seeks to make transitional housing more effective by ensuring properties are located in areas of greatest demand and managed by providers willing to work directly with rough sleepers. The Government has directed officials to reduce vacancy rates, shorten turnaround times between tenants, and speed up placements, ensuring no unit sits empty while people remain on the streets.

Action Four: Strengthening Rent Contribution Rules

The fourth action introduces changes to how beneficiaries contribute toward accommodation costs in social housing. While tenants are generally expected to pay 25 percent of their income, many choose not to set up direct deductions from their benefits, sometimes leading to arrears and eventual eviction.

Bishop confirmed that the Ministry of Social Development (MSD) will begin assessing beneficiaries moving into social homes to establish “good cause” for rent redirection directly from their payments. This approach, recommended by frontline homelessness providers, is intended to prevent tenancy breakdowns that can return people to rough sleeping.

Action Five: Greater MSD Discretion for Emergency Housing

The fifth measure empowers MSD staff to exercise greater discretion when considering emergency housing applications. Ministers stressed that qualification rules will not change but said staff should feel confident in applying common sense and judgment in marginal cases.

Bishop pointed to past failures, warning against returning to a system where thousands of families were placed in motels for extended periods. “We will not repeat the emergency housing motel catastrophe,” he said, but emphasized that discretion remains a valuable tool in ensuring no one falls through the cracks.

A Balanced Approach

The combined reforms seek to balance immediate relief with systemic improvements. By expanding Housing First, funding support services, streamlining transitional housing, tightening rent contributions, and clarifying MSD discretion, the Government aims to provide rough sleepers with more secure housing pathways while protecting public funds.

Minister Potaka summarized the approach: “We are committed to delivering the right homes, in the right places, with the right supports. These five actions will help us deliver on that commitment for rough sleepers across New Zealand.”