Prime Minister Christopher Luxon is showing no interest in tightening the housing allowance system for MPs despite the coalition making it harder for other New Zealanders to claim accommodation support.
Labour leader Chris Hipkins indicated he was open to making changes, saying some of the perks were "very, very hard to justify".
The renewed focus on MPs' benefits came after Stuff last week drew attention to the situation of minister Louise Upston who claims a $1000 a week allowance to live in her own Wellington apartment.
That's despite her also lifting the eligibility threshold for homeowners to claim an accommodation supplement. Speaking in Parliament last week, Upston said that would support "fiscal sustainability" by "better targeting financial assistance to those most in need".
Speaking on Tuesday, Upston denied claims of hypocrisy, saying they were "two very different issues".
"I think most New Zealanders understand that if you work away from home, your employer pays your accommodation costs. MPs and ministers aren't any different."
Upston repeatedly refused to quantify her accommodation costs. Parliament's records suggested her apartment was mortgage-free.
"I'm not going to go into the details," she said. There is no suggestion that Upston has broken the rules.
Asked whether his MPs were living up to their own rhetoric, Luxon told reporters he expected his team to manage expenses "as best they can".
"Our terms and conditions and remuneration are set by an independent remuneration authority. That's the right way to do it. It should be at arm's length. You don't want politicians involved in their terms and conditions."
Luxon said it would be "inappropriate" for MPs to be involved in setting their own pay.
Housing Minister Chris Bishop told reporters he did not know a lot about the perks available to MPs because he lived in the Wellington region all the time so did not receive any allowance.
"There's no point denying it, we are well paid. Whether or not we're worth that is ultimately a question for taxpayers to decide themselves," Bishop said.
"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 right."
Bishop declined to comment on Upston's situation, saying he wasn't aware of her personal arrangements.
Informed by reporters, he replied: "Good for her. That's over to her."
ACT leader David Seymour noted that many "unelected officials" in Wellington were paid much more than MPs.
"In the past, I'm someone who's cut their own pay, and so on, but I've come to accept over the years that the pay is what it is. You do your work and hope you don't lose your job, just like most people."
Labour 'may well' campaign on fewer MP perks
Hipkins said there was "increasing evidence" that the existing 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."
Hipkins said the Labour caucus had yet to discuss the matter, but they "may well" campaign on making changes.
Speaking later in the day, he said Labour MPs had agreed to "have a good look" at options for a fairer, more transparent system.
Hipkins said he disagreed with the settings when they were introduced by former prime minister Sir John Key in 2009.
The previous rules, however, were themselves complex and incentivised MPs to rent their own properties to colleagues rather than live in them themselves.
From 1 July 2026, the base salary for MPs will automatically increase to $181,200, as determined by the Remuneration Authority.
Hipkins said now was not the right time for MPs to take a pay rise but would not say whether he would stop it if he were prime minister.
Labour MP Kieran McAnulty, who claims the allowance while living in his studio flat in Petone, said the debate was ongoing but accepted there was 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."
Willie Jackson is another who receives the weekly allowance to live in a Wellington house he owns: "People don't understand sometimes the hours, the commitment, the sacrifice, so you're not going to get any complaints from me."
Green co-leader Marama Davidson told reporters she supported changing the rules to ensure the allowance scheme was fairer.
"This government is taking support away from low income families through the accommodation supplement, while allowing for their rich minister mates to line their pockets."
What can MPs claim?
The debate surrounding MPs' perks is a recurrent one - and stretches across Parliament.
Under the existing rules, all MPs are entitled to claim an accommodation payment as long as they are not typically based in Wellington.
The payment is designed to cover the MPs' costs while they are away from home. Ministers can claim up to $52,000 a year, while a regular MP can claim a maximum of just over $36,000.
The rules governing the allowance are fairly neutral about what type of accommodation the payment can be used for.
Some MPs secure a long-term arrangement with hotels nearby Parliament. Others rent apartments, while others effectively rent their own homes back to themselves.
Luxon suffered a massive public backlash early in the term after revelations he was receiving the $1000 weekly payment to stay in his mortgage-free Wellington apartment.
He initially defended the decision, saying he was entitled to the subsidy, but soon paid it back due to the "distraction".
Luxon's situation, however, was unique as he also had the option of staying in the taxpayer-funded Premier House in Thorndon.
The coalition last week passed the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill through its first reading.
Among other changes, the legislation lifts the threshold for homeowners to receive that support, meaning they must contribute at least 40 percent of their income to housing costs, up from 30 percent now.
Currently, households can claim up to $305 a week as long as they meet certain income and asset tests.
