Photo: Nick Monro
Welfare changes are biting so hard that people face losing the cars they call home or are struggling to provide the most basic needs, a Citizens Advice Bureau report has found.
The report, based on more than 10,000 requests for the bureau's help, found people from all walks of life were struggling to meet basic living costs.
Government policy or law changes such as benefit sanctions, tighter emergency housing criteria and cuts to community services had exacerbated the hardship, the report found.
The bureau's national policy advisor Louise May told Nine to Noon some of the people coming to them were in precarious situations - but instead of getting help, they were left to spiral.
"We are seeing people who may have young children or babies coming in and they're facing imminent homelessness and they're being told that they're not eligible for emergency accommodation," she said.
That was sometimes because they were told they had contributed to their own homelessness and did not qualify for support under a policy introduced by the government, she said.
Social Development Minister Louise Upston said she knew many New Zealanders had been finding things tough and the government was focused on easing the cost of living.
The report gave several case studies including a father of a disabled child who was spiralling into debt.
"Tegan is struggling with a large electricity bill because the heat pump broke down over winter and the landlord refused to fix it, requiring Tegan to only use his own oil heater instead. The landlord told Tegan that if they are cold, they can move out," the report said.
Work and Income said he did not qualify for support because he was paying what he could to the power company so it was not threatening to cut him off. It suggested he stop paying his car and content insurance.
Another detailed a woman living in her car seeking help.
"Anya needs to repair her car and make it road legal but has been told by Work and Income that she cannot receive any support or loan from them as their new policy is not to fix cars. Anya needs to be able to maintain her car as she lives in it and cannot afford to be fined. She keeps getting tickets because it is not legal.
Another person living in their car was desperate for work but could not afford to wash their clothes or buy soap to be presentable.
The Citizens Advice Bureau was calling for a range of improvements including prioritising food, housing and utility security and reviewing compliance penalties.
May said people coming to see them often had many different case managers or struggled to get through to Work and Income on the phone.
There needed to be more face-to-face connection between WINZ staff and clients so they could build rapport and really understands the situations, she said.
The bureau was seeing more and more people who would not previously be considered vulnerable spiral into financial holes that they could not get out of.
Upston was not available for an interview with Nine to Noon but sent a statement.
"The government had always acknowledged that many New Zealanders [have] been finding things tough during a prolonged cost-of-living challenge," she said.
"That's why over the last two years, we've focused on fixing the basics, lowering inflation and interest rates to begin easing the cost of living, and reducing taxes to put more money in people's pockets... New Zealand needs a growing economy, to create more jobs, and higher wages,"she said.
She understand MSD had promised to work with Citizens Advice to address operational issues around Work and Income raised in the report and would meet with them February next year, she said.
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