The Ministry of Social Development has introduced performance measures for managers linked to reducing the number of households in emergency housing, drawing criticism from social service providers.

MSD Chief Executive Debbie Power defended the approach, saying the ministry is executing government policy. "These are targets that the government has given us to achieve, and so, of course they are part of our performance suite of what we're expecting our staff to achieve," she said.

Auckland City Missioner Helen Robinson described the measures as creating perverse incentives to turn away people seeking help.

The Government set a target to cut emergency housing households by 75% by the end of 2029. That goal was reached last year, with numbers falling from 2,880 households in January 2024 to 498 in December 2024. In May 2026, 471 households were in emergency housing, a figure that has held relatively steady since late 2024.

The ministry implemented stricter eligibility rules making emergency housing both harder to access and harder to stay in. Power said every rejection is reviewed by a manager to ensure it aligns with policy. Around 35% of applicants are declined, with about 70% of those offered other support such as transitional housing or rental arrears assistance.

Most regions have met their reduction targets, with only two yet to do so. Those that reached their goals now have targets to keep numbers at or below current levels through 2029.

Frontline organisations say the tougher criteria have increased rough sleeping, a claim ministers dispute. The Government announced $10 million in September for organisations supporting rough sleepers, along with 300 additional Housing First places, and $14.5 million last month for similar support.

Labour housing spokesperson Kieran McAnulty called the minister's response a cop-out, saying MSD is following government instructions. He said staff now assess whether applicants contributed to their own circumstances when determining eligibility.

Associate Housing Minister Tama Potaka said staff performance management is the responsibility of the MSD chief executive.