November 15th, 2024

Government to address accommodation supplement issues in Queenstown

The current consideration involves aligning MSD's geographic information updates with Stats NZ's five-yearly review of geographic boundaries, which occurs before each Census.

This issue is notably pronounced in Queenstown, alongside other areas experiencing rapid urban expansion.
This issue is notably pronounced in Queenstown, alongside other areas experiencing rapid urban expansion.

In a significant move towards resolving financial support limitations for accommodation, the Government has announced plans to consider options for addressing a zoning issue affecting Queenstown residents.

The announcement comes as a response to the Petitions Committee's recommendation to update the geographic information used by the Ministry of Social Development (MSD) to calculate the accommodation supplement, ensuring it aligns with the latest Stats NZ geographic boundaries.

The big picture: Recognising the impact of outdated geographic information on accommodation support, the Government's initiative aims to rectify disparities that have left some households with less financial assistance than potentially entitled. This issue is notably pronounced in Queenstown, alongside other areas experiencing rapid urban expansion.

  • Details: Social Development and Employment Minister Louise Upston emphasised the significant challenges posed by the reliance on outdated geographic classifications. This reliance has resulted in unfair accommodation supplement distributions, particularly disadvantaging residents in rapidly expanding areas.

What's happening: To avoid the administrative burdens and costs associated with sporadic updates proposed by the Select Committee, the Government is seeking a more sustainable and financially viable approach. The current consideration involves aligning MSD's geographic information updates with Stats NZ's five-yearly review of geographic boundaries, which occurs before each Census.

  • What's next: This proposed alignment is under further advice to ensure it offers a long-term, financially sustainable solution to the accommodation supplement issue, particularly focusing on the needs of Queenstown residents left unaddressed by previous administrations.

The bottom line: The coalition Government's commitment to revising the process for determining accommodation supplements demonstrates a dedicated effort to ensure equitable financial support across New Zealand, addressing long-standing disparities and adapting to the country's changing geographic and urban landscape.