The skyrocketing demand for hardship grants means Work and Income case managers haven't been able to spend as much time getting people into jobs.
The admission has come from the Ministry of Social Development in its annual report - and figures released yesterday show the requests for money to pay for things like food and housing isn't slowing down.
Alongside that, the number of people on benefits is increasing - up five percent in the three months to December compared to the previous year.
RNZ's social issues reporter Sarah Robson has more.
