Minister defends claiming $1000 accommodation allowance for mortgage-free apartment – but won’t say what her costs are

Those who live outside the capital can also claim an allowance for accommodation costs in Wellington.

In most cases this is a flat rate not a reimbursement of costs, meaning MPs effectively get a top up of their salary if they are not based in Wellington. Ministers can claim more than MPs for their accommodation.

While there have been instances in the past where MPs’ pay has been frozen – such as during the Covid pandemic, Prime Minister Christopher Luxon has said he’s not going to step in to overrule the Remuneration Authority, who sets MPs pay and entitlements.

“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 setting their terms and conditions.”

“Ultimately, I want to stand in solidarity with Kiwis who are finding it really tough, so I’m very open to it.”

Stuff has done a stock take of the MPs who are claiming the accommodation allowance, and also own property in Wellington.

Luxon famously vowed to pay back the $13,000 he claimed for an accommodation entitlement while living in his Wellington apartment, instead of Premier House. He had initially claimed $1000 a week to live in the apartment he owned mortgage free, saying he was “entitled to the entitlements that everyone else has,” but quickly walked it back when he realised the perception of that.

According to a comparison of the pecuniary interests register of MP and Minister expense claims, 28 MPs claiming the allowance own apartments or homes in Wellington, and collectively taxpayers gave them over a million dollars in 2025.

Of the 28, Andy Foster, Paulo Garcia, David McLeod, Stuart Smith and Louise Upston, did not list any debts owed by them – indicating they do not have a mortgage on the property.

Foster was previously the mayor of Wellington. He also has a family home listed in South Wairarapa.

Last week Social Development Minister Louise Upston proposed a Bill changing the thresholds for receiving the accommodation supplement.

The maximum a household can claim, if they meet certain income tests, is $305 a week. But they have to contribute at least 30% of their income to housing costs before they are eligible.

If Upston’s Bill passes, that threshold will increase to 40% for households that own their home.

Upston declined to comment to Stuff about claiming $1000 a week for the apartment she owns with no mortgage last week.

However, in response to parliamentary questions about the Government shifting the eligibility rules for the accommodation supplement, Upston said the people who need government support most are renters – not those who own their home.

“We want to target support for the accommodation supplement to those who need it most, and they are renters; they are not people who are using taxpayer support to increase their own asset.”

“Well, there’s two very different issues. What we were talking about is the accommodation supplement changes that we announced in budget last year. In terms of MPs and ministers, those are matters for the remuneration authority. And if you’ve got questions, I suggest you ask them,” she said.

We also asked MPs whether their accommodation allowances were fair.

“MPs’ terms and conditions for remuneration set by an independent body. There are many countries around the world where MPs are involved or 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,” Prime Minister Christopher Luxon said.

“Obviously if you have to come from … a different part of the country, and be based in Wellington for part of the week, and then for a long time there’s been some kind of accommodation support, but how that’s managed is decided by the independent authority,” Justice Minister Paul Goldsmith – who owns an apartment in Wellington, and claims the allowance, said.

Housing Minister Chris Bishop is based in Wellington so ineligible for accommodation allowances, but said the rules were in line with business travel policies.

“The rules are basically, as I understand it, there’s a sum of money that MPs can access because they’ve got to travel to Wellington for work, that’s actually standard practice for the business world – where if you have to travel for work on your own, you know that gets covered. So, you know, it’s essentially a form of that,” Housing Minister Chris Bishop said.

“I disagree with the change that John Key made many years ago, which was to bulk fund accommodation allowances for MPs. Before that time, MPs had to produce evidence of actual and reasonable expenses in order to claim those allowances. That’s no longer the case. They basically get that as a cash allowance, regardless of how much they’re spending on their Wellington accommodation.“

Kieran McAnulty – who claims the allowance for a house he owns with his wife in Petone – says it’s an ongoing question as to whether MPs should be able to claim the allowance on a property they own.

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

Willie Jackson who also owns an apartment in Wellington wants the entitlements left alone.

“There’s quite a sacrifice for members of parliament, for people who come here,” he said.

“I think that, you know, people don’t understand sometimes the hours, the commitment, the sacrifice, so you’re not going to get any complaints from me.”