Rising power prices and living costs are leaving more households struggling to afford the basics, according to an Otago University researcher.
Government figures show more than one million people received the Winter Energy Payment in 2025, about 15% more than five years earlier.
At the same time, hardship grants for essentials such as electricity, gas and water have remained relatively steady in number but the average payment has increased by about 33%.
Some charities expected this winter to be worse, as many were unable to keep up with demand. Variety alone looked after 7500 families, and had another 2000 on its waitlist.
“Seventy-seven percent of the families that we support don't have the basics and they're struggling," said Variety’s interim chief executive Wayne Howett.
“Twenty-five percent of the kids that we look after don't even have their own bed, they share a bed with mum and dad or their siblings, and the energy costs right now means that a lot of those kids, you know, more than 70% of them put up with being cold."
Christchurch City Missioner Corinne Haines said the mission gave away $4m worth of food a year but it could “only give a person a food parcel once every seven weeks”.
Otago University Senior Research Fellow Kimberly O’Sullivan said the data showed the problem was not improving, with electricity costs rising 20% over the past two years alone.
“What we’re seeing is that things aren’t getting any better. In fact, it’s getting harder for people experiencing energy hardship,” she said.
O’Sullivan said incomes and Government support have not kept pace with cost increases, and that’s putting pressure on low-income households.
“Alongside rising food and fuel costs, families are really struggling sometimes just choosing between keeping the lights on or keeping warm,” she said.
More people were eligible for support such as the Winter Energy Payment but O’Sullivan said uptake of other assistance was limited.
She said hardship grants could be a deterrent because they often have to be repaid from future benefit payments.
“People don’t like taking advances because they know they’ll have to pay them back, which makes things even harder later,” O’Sullivan said.
Social Development Minister Louise Upston said the total number of hardship grants has remained relatively steady in recent years but the cost of those grants has increased.
“The number of hardship grants is static but the overall value has increased, which is what we would expect.”
She acknowledged the pressure many households are under and is urging people to seek help through the welfare system.
“I appreciate for some families it’s particularly challenging out there at the moment.
“For anyone who is finding it difficult, I'd encourage them to go into MSD and see if they are eligible for assistance.”
But she said there were clear limits to how far government spending could go.
“We can’t spend our way through a crisis … we have to ensure that support is targeted, timely and temporary.”
A central plank of the Government’s response was moving people off benefits and into work and Upston said that was giving households financial security.
“What we have seen is really strong exits from benefit into work … 83,000 to 84,000, which is an increase on the year before.
“We improve people’s lives when they get into work, and that’s what we’ll continue to focus on.”
Upston said the Government needed to balance supporting households with keeping broader economic pressures, such as inflation, under control.
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