MPs shouldn’t claim $52k housing allowance to live in homes they own: Labour

Tuesday, 26 May 2026

Social Development Minister Louise Upston claims a $1000 a week housing allowance to live in a Wellington apartment she owns.

A debate has broken out in Parliament over whether MPs who live outside the capital should claim a housing allowance to live in a house they own.

It’s not a new debate - the prime minister came under scrutiny for claiming this same allowance in early 2024 - but it has resurfaced at a time when the Government has been hammering cost savings.

Social Development Minister Louise Upston recently introduced legislation to tighten access to the accommodation supplement - available to low-income renters and home-owners - to “ensure the fiscal sustainability of the welfare system”.

Explaining the change in the bill’s first reading she said, “these home-owners are being supported by the taxpayer to acquire a significant personal asset.”

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Ministerial expenses show Upston, who is the MP for Taupō and who lives near Cambridge when the House is in recess, claimed a $1000 a week allowance last year - on top of her more than $300,000 salary. The pecuniary interests register shows she jointly owns a Wellington apartment and doesn’t have any mortgage debts owed.

Labour leader Chris Hipkins said the rules weren’t working as they should.

“People shouldn't be claiming large allowances for freehold properties. MPs shouldn't be gaining extra salary through the accommodation allowance,” Hipkins said.

“It should be there to support them to be in Wellington when they need to be here for Parliamentary purposes and that is what it's there for and it shouldn't be there as an extra source of income.”

Upston repeatedly refused to quantify her accommodation costs on Tuesday afternoon, saying ministers and MPs across the house had long claimed the housing allowance.

“Most people will accept if people work away from home for a period of time that their employer covers their accommodation costs.”

Upston is not alone. Labour MP Kieran McAnulty is another MP who claims the housing allowance while living in a studio flat in Petone that he owns. He lives in Wairarapa when the House is in recess.

“It’s certainly a legitimate question around fairness if some MPs that partake in that allowance are also actively trying to remove or limit or withdraw support for people in vulnerable circumstances. We've never once advocated for that,” McAnulty said.

Christopher Luxon said MPs’ salaries and allowances were a matter for the independent Remuneration Authority.

“There are many countries around the world where MPs are involved in setting their own terms and conditions, that's inappropriate, so we leave that with that authority for very good reason and I think that's the right way to deal with it.”

Housing Minister Chris Bishop agreed it was a matter for the authority.

“MPs and ministers are very well paid, as you know. I mean, there's no point to denying it. We are well paid, whether or not we're worth that is ultimately a question for taxpayers to decide themselves.

“We are well paid relative to the rest of the population, there's no doubt about that but our pay is also set independently of us and I think that's that's right.”

Deputy Prime Minister David Seymour said his starting point would be for the money to be used for the purpose it was given, adding there were lots of unelected public servants in Wellington on bigger pay packets.

Hipkins said there was 'increasing evidence' that the MP allowance scheme was not working as it should.

'Claiming an accommodation allowance when you're not spending that money on accommodation is something that's very, very hard to justify.'

“We’re going to look at some options about what a different system that's fairer, more transparent, and frankly more justifiable might look like, and then we'll make decisions on that, but we haven't done that yet.”

Politicians’ housing allowances have come under scrutiny before.

Former Finance Minister Bill English paid back about $32,000 of his taxpayer-funded allowance in 2009 after it became clear he had - within the rules - been taking the money despite living in a house that sat in his family trust.

Then Prime Minister John Key asked Ministerial Services to take a fresh look at the rules and went on to make changes, including introducing a cap of $30,000 a year for ministers who stayed in their own homes.