Since Social Housing Minister Paula Bennett announced the grant last month, Work and Income has received around 130 inquiries about the grant, which will not have to be paid back.

From Monday, people in social housing, on the social housing register or eligible for social housing can go to Work and Income and make appointments to assess their suitability.

“For those people who may want to move to cheaper regions where they may have family and other support networks, this grant will remove the cost barrier that may be preventing them from making the move,” Mrs Bennett says.

“This is voluntary and may not be for everyone, but it is just one of the many initiatives in place or being rolled out to help people in a very tight housing market.”

The assistance, which can be used for moving costs, bonds, letting fees and other expenses, can be used to move into a social house or a private rental. It will also be in addition to existing housing support such as the accommodation supplement.

The amount of the relocation grant, up to a maximum of $5000, will depend on factors such as the distance moved, household size and amount of belongings to be moved. It is being made available under the existing Housing Support Assistance Programme.