PHOTO: Luxon (RIGHT) has defended the current arrangements, arguing MPs’ pay and entitlements are determined independently by the Remuneration Authority. FILE
🚨 MPs Cutting 9000 More Jobs While Pocketing Taxpayer Housing Perks
The coalition government is facing growing criticism after reports emerged that up to 9000 more public servant jobs could disappear — while MPs continue claiming generous taxpayer-funded housing allowances and benefits.
The backlash comes amid renewed scrutiny over accommodation subsidies available to Members of Parliament, including ministers who are able to claim thousands of dollars each year while simultaneously tightening welfare support for ordinary New Zealanders.
According to reporting from Radio New Zealand, Prime Minister Christopher Luxon has shown little appetite for reforming the housing allowance scheme despite public concern.
Thousands Of Public Service Jobs Already Gone
Since taking office in late 2023, the coalition government has already overseen sweeping cuts across the public sector.
Estimates suggest more than 6500 public service roles have either been removed, disestablished or proposed for cuts across ministries, departments and agencies as part of the government’s cost-cutting agenda.
Now, concerns are mounting that another 9000 positions could eventually be on the chopping block as departments continue restructuring efforts aimed at reducing government spending.
Critics argue frontline services are already under pressure, with fears cuts are impacting health, housing, education and social support services nationwide.
MPs Continue Claiming Accommodation Allowances
At the same time, public attention has turned toward the generous accommodation allowances available to MPs.
Recent scrutiny focused on Minister Louise Upston, who reportedly claims approximately $1000 per week to stay in her own Wellington apartment while also overseeing tougher accommodation supplement rules for struggling New Zealanders.
Under current rules:
- Ministers can claim up to $52,000 annually
- MPs can claim more than $36,000 annually
- Payments can be used for hotels, rentals — and in some cases their own properties
The situation has reignited accusations of hypocrisy and “one rule for politicians, another for everyone else”.
Luxon Refuses To Intervene
Luxon has defended the current arrangements, arguing MPs’ pay and entitlements are determined independently by the Remuneration Authority.
Speaking to reporters, Luxon said it would be “inappropriate” for politicians to directly set or interfere with their own pay and allowances.
Housing Minister Chris Bishop also acknowledged MPs were “well paid” compared to most New Zealanders but defended the independent system.
Labour Signals Possible Changes
Labour leader Chris Hipkins indicated he was open to reviewing the system, saying some allowances were becoming “very, very hard to justify”.
Hipkins suggested Labour may campaign on reducing MP perks in future.
Meanwhile, Labour MP Kieran McAnulty acknowledged there were “legitimate questions around fairness”, particularly if politicians receiving allowances were also pushing to reduce support for vulnerable New Zealanders.
Public Frustration Growing
The debate comes at a time when many New Zealanders are grappling with:
- Rising mortgage rates
- Increasing rents
- Higher living costs
- Public sector redundancies
- Reduced access to government support
Critics argue ordinary workers are being told to tighten their belts while politicians continue enjoying taxpayer-funded perks many New Zealanders could only dream of.
With further job cuts potentially looming, pressure is likely to intensify on the government to explain why austerity appears to apply differently inside Parliament than it does outside it.