COVID-19 and the Homeless Community: an Inequality Crisis?
BY RENEE WELLS
COVID-19 has forced many new challenges and restrictions upon the world. On Tuesday 23 March, New Zealand Prime Minister Jacinda Ardern announced that New Zealand would be entering Alert Level 4, meaning a nation-wide lockdown was to be implemented just 48 hours later. This lockdown entailed the closure of all non-essential businesses, ranging from fast food restaurants to schools.[1]
The impact of this lockdown has left many people in New Zealand wondering how they will stay isolated without a home. There are over 14,000 people on New Zealand’s waitlist for social housing.[2] These people are without access to safe homes and will struggle to adhere to the lockdown regulations. The Government must consider the homeless community in order to prevent the progressive spread of COVID-19. Some are calling this an inequality crisis.[3]
Definition of homelessness
Statistics New Zealand defines homelessness as “living situations where people with no other options to acquire safe and secure housing: are without shelter, in temporary accommodation, sharing accommodation with a household or living in uninhabitable housing.”[4] These people may find it impossible to adhere to the Government’s rules of self-isolation.
Further, people living on the street and in overcrowded or transitional housing are more likely to have pre-existing health conditions in addition to a higher risk of being exposed to the virus.[5] Both of these factors indicate an increased chance of catching the COVID-19 and transmitting it to others around them.
Statistics on homelessness in New Zealand
It is estimated that 1% of New Zealand’s population is homeless. A 2013 census concluded that around 41,000 New Zealanders are homeless, with 70 per cent of the homeless population living in overcrowded conditions.[6]
Image source: https://www.housingfirst.co.nz/homelessness/
According to Housing First, there are three main categories of homelessness. These include transitional, episodical and chronic homelessness. All of these categories need to be taken into account by the Government during lockdown. Housing First estimates that, of the homeless people in New Zealand, 80% are transitionally homeless and 15% episodically homeless, leaving only 5% chronically homeless.[7]
Transitional homelessness may only be for short period of time and is usually caused by employment, family and health issues. With this type of homelessness being at such a high rate among the homeless community, the Government will need to utilise emergency housing to cater for these people, such as motels and ghost homes.
Motels and ghost homes
Motels are a vital source of immediate housing that could potentially help thousands of people in New Zealand with nowhere to isolate. The New Zealand Government has been utilising these facilities during the level 4 lockdown. On Thursday 9 April, 962 motel units in 15 towns and cities across New Zealand were made available for those who needed them, with 496 units already housing homeless and vulnerable people. [8]
Section 15 of the COVID-19 Response (Urgent Management Measures) Legislation Act 2020 inserted a new Schedule 5 into the Residential Tenancies Act 1986. The relevant sections are as follows: [9]
(s 6) Taking steps to terminate tenancy without grounds an unlawful act
This section makes a landlord’s termination/application for the termination of a tenant unlawful if the landlord knows that they are not entitled to give the notice or to make an application for termination.
(s 13) Increasing rent an unlawful act
This section states that it is an unlawful act for a landlord to increase or intend to increase rent knowing that they are not allowed to do so under the Act.
The question is whether sections 6 and 13 apply to the Government with respect to evicting the street homeless from motels. Even if applicable here, what happens to these people following the lockdown?
Auckland City Mission CEO Chris Farrelly stated that a large amount of Auckland’s street homeless are now living in temporary homes. Farrelly added that the important issue here is that “once you have housed people temporarily you cannot put them back on the streets again in three months’ time”.[10]
Evicting the street homeless from motels following the lockdown could be categorised as a human rights issue under s 53 Human Rights Act 1993.[11] This section sets out that it is unlawful to discriminate against any person in provision of land, housing and other accommodation. The question remains: how does the New Zealand Government continue to provide housing and support for these people in a permanent way?
There are an estimated 40,000 ghost homes in Auckland alone.[12] Ghost homes are empty houses that do not contain tenants. They will play a key part in addressing chronic homelessness and could potentially be an immediate source of housing for the homeless during the level 4 lockdown.
Panic-buying
Panic-buying will have had an impact on a large proportion of New Zealand’s financially vulnerable population, including the homeless community.
The lockdown that New Zealand is currently facing has led to the closure of all non-essential businesses.[13] The announcement of the lockdown resulted in ‘panic-buying’ by a vast number of the population who believed that supermarkets would close.[14]
The negative implications of panic-buying on the homeless and financially vulnerable are significant, as many families do not have the option to go to the supermarket every day. A South Auckland mother of three has revealed that she is homeless and is struggling to feed her children on a day-to-day basis due to panic-buying.[15]
Supermarkets have remained open in alert level 4 but it has become increasingly difficult to find essential items in supermarkets, such as hand sanitiser, eggs or toilet paper.[16] Although limits per customer have been placed on various essential items in-stores, there is no limit to how often you can purchase such items.
According to the 2013 census, 7.9% of New Zealand households do not own a motor vehicle. This makes supermarket shopping for approximately 110,000 households much less frequent than those households who own a car. [17] With panic buyers in the midst, those who have less opportunities to go to the supermarket may not have the option to purchase some essential items that others have bought in bulk.
Food poverty
With schools closing during Alert Level 4, pressure is being put on families to provide three meals a day for their children. Many families rely on the Government’s free school lunch programme to feed their children during the week.[18] The closure of schools has put a strain on parents/caregivers to provide nutritious food for the whole family, seven days a week.
Auckland City Mission has stated that they will continue to provide food parcels for families in need. These food parcels will be available from a distribution centre in order to adhere to the lockdown rules of social distancing. With the reduction of hot meals provided by the community centres, there is an increase in demand for these emergency food parcels.[19]
According to Auckland City Mission CEO Chris Farrelly, the majority of bulk food donations during the lockdown have been provided by manufacturers and growers. Farrelly acknowledged the outstanding generosity of the donors but stated that the long term answer is not donations, but addressing what causes food poverty in the first instance.[20]
Farrelly revealed that “New Zealand produces enough food calories for 20 million people, yet we cannot properly feed our 5 million”. This is another key human rights issue that has emerged through COVID-19. With “roughly 10% of our population being food insecure and that figure probably doubling as a result of COVID-19”, the question for the Government is whether a change is necessary to our benefit levels and wages.[21]
The UN sustainability goals state that by 2030 the aim is to end hunger and poverty everywhere.[22] Increase in hunger is directly correlated with countries where growth in the economy is falling behind and where there is income inequality.[23] COVID-19 is damaging the economy,[24] and as a result these goals may be harder to reach than before.
Benefits and subsidies available
Social Security (Rates of Benefits and Allowances)(COVID-19 Recovery Package) Order 2020
This order has enforced increases to the following benefits and allowances to address economic impacts of COVID-19: [25]
Jobseeker support
Sole parent support
Supported living payment
Youth payment and young parent payment
Former widows’ benefit
Former domestic purposes benefit.
Social Security Act 2018
Sections 64 and 443 of the Social Security Act 2018 outline emergency benefits and payments during an epidemic in New Zealand.[26]
(s 64) Emergency benefit: grant during epidemic in New Zealand
Section 64(2) states that the Ministry of Social Development (MSD) may grant emergency benefits to people who would ordinarily not be entitles to an emergency benefit. Discretion lies with the minister on who may be granted this benefit and for how long after the epidemic notice expires.
(s 443) Regulations: payments during epidemic in New Zealand
Under this section, the Governor-General may authorise benefits to be paid to people otherwise disnentitled to them; reinstate cancelled benefits; grant or reinstate benefits for people in non-entitlement periods and; pay benefits at a higher rate (not exceeding the maximum) than a person may otherwise be entitled to.
The Wage Subsidy Scheme
Many employees working for non-essential businesses have experienced an income loss, and in some cases have been made redundant. The Government has set up the Wage Subsidy Scheme to accommodate for such loss caused by the lockdown.
The Wage Subsidy Scheme: [27]
Supports employers adversely affected by COVID-19, so that they can continue to pay their employees, and
Supports workers to ensure they continue to receive an income, and stay connected to their employer, even if they are unable to work.
Implementing various benefits during lockdown may be a short-term solution to a long-term problem. The Government is temporarily allocating money to employers to pay their employees. This means that after the lockdown finishes, whilst New Zealand may still be in an economic crisis, the Government will end these payments. It is estimated that approximately 200,000 New Zealand workers could be made redundant following the pandemic, as it will no longer be a financially viable option to maintain high levels of staff.[28]
“The general view from bank forecasters is that GDP will contract by around 15% in the June quarter, with unemployment rising to around 9% in September.”[29] According to this data, the unemployment rate is forecasted to more than double over the coming months, rising from 4% to 9% by September.
Lower income families in New Zealand will be suffering disproportionately from the effects of COVID-19. As New Zealand faces a potential “$100 billion debt”, increases in tax and levels of poverty can be expected following the pandemic.[30]
Foreign nationals
As borders worldwide continue to close, foreign nationals stuck in New Zealand may be unable to get back to their own countries.[31] Although these people may not be homeless in their day-to-day life, they have been made homeless due to the pandemic.
The New Zealand Government has made temporary accommodation available to any individual in this situation who has nowhere else to stay, in addition to allowing domestic flights to Auckland or Christchurch for anyone who has booked an international flight out of the country.[32]
Although foreign nationals have been allowed access out of New Zealand back to their home countries, hundreds of Indian nationals are stranded here due to India’s ban on international flights. Many of these international flights to India will remain closed indefinitely. In the meantime, these people are running out of money. [33] NZ Herald reported that free food parcels were being handed out to struggling Indian nationals in Auckland on April 6.[34]
Conclusion
COVID-19 has clearly been devastating in more ways than one, as the world faces ongoing uncertainty of how our lives will look in the next few months. There is also the prospect that this pandemic is shedding light on significant issues that need to be addressed such as food poverty, homelessness and unemployment rates in New Zealand.
Chris Farrelly believes that “there are many opportunities that COVID-19 is throwing up for the better and it is giving us an opportunity to see the problems in a starker way and address them.”[35]
The views expressed in the posts and comments of this blog do not necessarily reflect those of the Equal Justice Project. They should be understood as the personal opinions of the author. No information on this blog will be understood as official. The Equal Justice Project makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The Equal Justice Project will not be liable for any errors or omissions in this information nor for the availability of this information.
Featured image source: unsplash.com
[1] “All of New Zealand must prepare to go in self-isolation now - Prime Minister” (23 March 2020) RNZ <www.rnz.co.nz>.
[2] Auckland Action Against Poverty “Homeless need to be included in response to COVID-19” (media statement, 23 March 2020).
[3] The Equality Network (media release, 31 March 2020).
[4] New Zealand definition of homelessness (Statistics New Zealand, 2009) at 6.
[5] James Fyfe “Coronavirus and social inequality: How poorer Kiwis are set to bear the brunt of COVID-19” (2 April 2020) Newshub <www.newshub.co.nz>.
[6] Natalia Sutherland “Who are NZ's homeless? Thousands of Kiwi kids and it could be getting worse, expert warns” (18 September 2018) One News <www.tvnz.co.nz/one-news>.
[7] “Homelessness” (2019) Housing First Auckland <www.housingfirst.co.nz>.
[8] New Zealand Government “Homeless And Vulnerable Getting Housed” (press release, 12 April 2020).
[9] Residential Tenancies Act 1986, ss 6, 13.
[10] Interview with Chris Farrelly, CEO Auckland City Mission (the author, Auckland, 22 April 2020).
[11] Human Rights Act 1993, s 53.
[12] Unite Union “Lockdown was necessary and now guaranteed income support and protections are vital” (media statement, 23 March 2020).
[13] RNZ, above n 1.
[14] Matt Burrows “Coronavirus: New Zealand in panic-buying bedlam as police vow crackdown on rowdy supermarket shoppers” (23 March 2020) Newshub <www.newshub.co.nz>.
[15] “Homeless mum reveals how panic-buying is starving her family” (23 March 2020) NewstalkZB <www.newstalkzb.co.nz>.
[16] Hamish MacLean “Panic-buying even with no shortages” (9 March 2020) Otago Daily Times <www.odt.co.nz>.
[17] “Transport and communications in New Zealand” (3 February 2015) Stats NZ <stats.govt.nz>.
[18] “Free school lunches served up to thousands” (20 February 2020) Beehive <www.beehive.govt.nz>.
[19] Auckland City Mission “Auckland City Mission’s Response to Covid-19” (media statement, 25 March 2020).
[20] Interview with Chris Farrelly, above n 10.
[21] Interview with Chris Farrelly, above n 10.
[22] 2030 Agenda for Sustainable Development GA Res 70/1 (2015), pp 15, 35.
[23] Sarah Boseley “World hunger on the rise as 820m at risk, UN report finds” (15 July 2019) The Guardian <www.theguardian.com>.
[24] Jane Patterson “Assessing the economic impact of Covid-19 and preparing for alert level 3” (14 April 2020) RNZ <www.rnz.co.nz>.
[25] Social Security (Rates of Benefits and Allowances)(COVID-19 Recovery Package) Order 2020, cls 5, 7(4).
[26] Social Security Act 2018, ss 64, 443.
[27] “Wage Subsidy Scheme” (6 April 2020) Employment New Zealand <www.employment.govt.nz>.
[28] Madison Reidy “Coronavirus: 200,000 Kiwi could be laid off as a result of COVID-19” (27 March 2020) Newshub <www.newshub.co.nz>.
[29] “Weekly Economic Update - 17 April 2020” (17 April 2020) The Treasury <www.treasury.govt.nz>.
[30] Susan Edmunds “'Curve flattening' and lockdown must succeed to make economic price worthwhile: ASB” (6 April 2020) Stuff <www.stuff.co.nz>.
[31] “Coronavirus: Travel restrictions, border shutdowns by country” (22 April 2020) Aljazeera <www.aljazeera.com>.
[32] New Zealand Government “Domestic Travel” (9 April 2020) Unite Against COVID-19 <www.covid19.govt.nz>.
[33] Lincoln Tan “Covid 19 coronavirus: Indian nationals stuck in NZ 'in desperate state' for food and money” (6 April 2020) NZ Herald <www.nzherald.co.nz>.
[34] Lincoln Tan, above n 33.
[35] Interview with Chris Farrelly, above n 10.