Prime Minister John Key has been accused of being disconnected from average New Zealanders after saying that being on a benefit was a lifestyle choice.
Answering questions from Labour in Parliament yesterday, Mr Key defended his Government's efforts to help the "underclass", a term he coined while in opposition in 2007.
Mr Key said the global recession had contributed to an increase in food poverty.
"But it is also true that anyone on a benefit actually has a lifestyle choice. If one budgets properly, one can pay one's bills," Mr Key said.
"That is true, because the bulk of New Zealanders on a benefit actually pay for food, rent, and other things. Some make poor choices, and they do not have money left."
The Coalition to End Homelessness, which is made up of a number of social agencies including the Salvation Army and Lifewise, said Mr Key's comments were outrageous.
Co-chariman Corie Haddock said for most people in poverty it was a case of a lack of options not choice.
"I find it absolutely astounding actually, he's either getting really bad advice from people or he is completely disconnected from the average New Zealander who is really suffering," Mr Haddock told NZPA.
"What's happening with those people is the risk of homelessness increases quite significantly. Poverty can be another pathway into homelessness."
Based on his experience assisting people with budgets at an Auckland homeless service, Mr Haddock said Mr Key's comments about budgeting properly were wrong.
"By the time they pay their rent, their power and their phone, they have $24 a week for food and entertainment, and you can't live on that."
Mr Haddock said not enough was being done to address the issue of poverty in New Zealand, and that a national strategy was needed.
Appearing before a parliamentary committee yesterday, the coalition called for an inquiry into the homelessness.
Mr Haddock said there was a perception that the Government would have looked into homelessness but that, in reality, there had never been any government research into the issue.
"There are a number of myths that exist. One is that homelessness doesn't exist in New Zealand, the other one is that it's about choice -- that people are homeless because they want to be, that it's a lifestyle choice," Mr Haddock said.
"If you think about it logically, it makes no sense at all, no one would ever choose to live in such an inappropriate situation."
