Social housing cutbacks confirmed as Govt axes another 310 Kāinga Ora workers

The Government finalised plans to axe a further 310 roles at Kāinga Ora, jobs focused on driving the construction of homes for low-income families.

This makes a total of 551 roles lost since April 2024, or one in six workers across the country. A third of the workforce is in Auckland.

"This is a sad day for these dedicated and skilled workers and a sad day for the proud tradition of the state putting a roof over the heads of those needing secure, healthy homes," said Duane Leo National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

"Kāinga Ora has been a success story, housing thousands of families in new builds - now we have no plan B. The need is not going away, and we have no detail on how the gap is going to be filled by community housing providers.

"This is just more evidence of the Government rushing its decisions to suit its ideological obsession with small government without consideration of the consequences for those who need a helping hand.

"This will mean more uncertainty for those struggling to find a home, particularly Māori whānau. Currently Kāinga Ora’s tenants are approximately 36% Māori, and 40% are children.

"Many Māori rely on the state providing homes which is a clear obligation under Te Tiriti. Again, as we have seen with cuts to other public services which support Māori needs, the Government is happy to walk away from this obligation."

People losing their jobs are those critical to the planning, design and construction of social houses, like architects, technical advisors, project coordinators, urban designers, spatial planners, and quality assurance experts.

"These workers should be proud of their efforts in providing modern homes for those who need them most," said Duane Leo. "They made a difference.

"Now social housing faces an uncertain future as the Government turns back the clock and embraces the failed outsourcing policy of the past."

Background - what is happening at Kāinga Ora?

Hundreds of planned Kāinga Ora houses are on ice as the Government shifts back to a focus on community-provided social housing.

The restructure sees all housing delivery and support functions consolidated into one new Housing Delivery Group. This reflects the plan to streamline construction planning and reduce the number of new houses built. This will fall from 4800 this year (an additional 3500), to only 420 additional new houses in 2026 plus 1600 renewals and retrofits of existing homes. There are still 22,000 people on the waiting list for a home.