A directive that called into question the parenting of families who needed emergency housing is still affecting people six months after it was retracted.

Minister for Social Development Carmel Sepuloni has slammed the directive and ordered an investigation.

Last year in August, the Ministry of Social Development sent out an email instructing staff to alert the, then, Ministry for Vulnerable Children of any new clients with dependent children who were granted a Special Needs Grant for emergency housing assistance.

The Ministry quickly recognised its advice to staff was wrong and retracted the statement two days later.

However there are still accounts of women being threatened with a notification to child protection services if they seek emergency accommodation.

Manurewa mum-of-six Athena was told she would be notified to child protection services if she moved into a motel due to an eviction notice. Athena, who the Herald agreed to name only by her first name, labelled the threat as punitive, insulting and unfair.

"I pretty much want to sleep in my car instead of going to them for accommodation

"It's degrading to us as parents. It's like our choice that we wanted to go into a motel. That's the last place we want to live... I want to be stable for my children."

Athena was sent a 90 day eviction notice on February 13 for her private rental that is paid for through Work and Income as the landlord wanted the house back.

She went to Work and Income the next day to discuss her options. She has bad credit so finding her own rental is difficult, she has been on the Housing NZ waitlist since mid-last year.

A manager explained that if she couldn't find accommodation by May 20 she could get a motel room for her and her children but Work and Income would have to notify the Ministry for Children - Oranga Tamariki.

Athena asked why they would have to notify the ministry and the manager replied that motels are an unsafe environment for children to be brought up in.

It was unfair that Work and Income provide emergency housing yet can't ensure their safety and enforce a notification against the parents, Athena said.

Athena has never had a ministry notification before. She said she was meant to be high priority on the Housing NZ list but hasn't had a house since she joined the waiting list.

Currently, Athena is trying to find a private rental.

 Auckland Against Poverty advocacy co-ordinator Alastair Russell. (Photo / Dean Purcell)

Auckland Action Against Poverty spokesman Alastair Russell said the notification issue appeared to be widespread and was of great concern.

"It is a further form of harassment dressed up as support.

"They [Government agencies] invest money in harassing parents who are unfortunate enough to be homeless. And homelessness is not an indicator of child abuse, it is an indicator of poverty and social failing by the state."

MSD deputy chief executive Ruth Bound said they regretted the error of providing the wrong advice to their staff and they would assist in the investigation the Minister has requested.

Bound said it was not their policy to automatically refer anyone to child protection services if they have children and are living in emergency accommodation.

"But we do alert Oranga Tamariki if we believe a child is at risk in any way."

When contacted by the Herald regarding Athena's situation Sepuloni said she was completely unaware of the issue and urgently requested the Ministry look into the matter.

She said even though the statement was retracted it was likely some people were impacted, "and that is disappointing". She believe it could have wide-reaching influence on people in vulnerable situations and their ability to reach out for essential services.

"While there will always be a chance of human error, that such a potentially harmful direction could go to staff without being detected earlier is concerning.

"I have ordered a timely investigation into this matter to ascertain how this occurred and to ensure the appropriate checks and balances are in place to prevent instances like this from happening again. 

"This Government is committed to a fair and accessible welfare system that upholds the respect and dignity of those that need to access it. I expect the outcome of the investigation should allow us to move more confidently in that direction."