Does he accept the findings published by the Ministry of Social Development that the 1992 reforms to remove the rent subsidy and introduce the Accommodation Supplement failed to improve horizontal equity and instead worsened vertical equity, and if so, how did that factor into the government’s decision to reduce the Income-Related Rent Subsidy and increase the Accommodation Supplement?

Answer

I am aware of the findings about the 1992 reforms which have informed the Review of Social Housing. There are no plans to remove the rent subsidy for social housing tenants and to extend the Accommodation Supplement (AS) to social housing tenants. The gap between the income-related rent subsidy (IRRS) and AS has grown over time, since the re-introduction of IRRS in 2000. Budget 2026 changes will retain income-related rent (IRR) at a more generous level than the AS, with tenants in comparable financial circumstances having higher after-housing cost incomes than those in the private market receiving the AS.