The Salvation Army says housing support payments need to be urgently increased, saying the most vulnerable families are being left behind.
It's calling on the Government to boost its housing support for hundreds of thousands of lower-income households in this year's upcoming Budget.
Finance Minister Grant Robertson has said this year's Budget will be focused on health and climate change but has left plenty of unanswered on the cost of living crisis.
However, The Salvation Army said it's looking to the Government to provide relief for what they are calling a housing "catastrophe" hitting those already on the margins of the housing market hardest.
"High rental costs and the surging increase in the cost of living are leaving the most vulnerable
individuals and families behind when it comes to securing safe and affordable accommodation," senior social policy analyst Paul Barber said.
The Salvation Army said there needs to be an urgent increase in housing support payments and longer-term reforms as rent levels rise 40 percent higher than in 2016, which the current Accommodation Supplement is based on.
"Housing payments, such as the Accommodation Supplement, need to be urgently increased just to catch up with the current high cost of accommodation, while longer-term reforms will make them more fit for purpose," Barber said.
"In the midst of this extended housing crisis, The Salvation Army is looking to this week’s Budget to deliver genuine relief to the high housing and living costs being faced by lower-income households."