Prime Minister Christopher Luxon appears to have ignored his own orders to the public service to find savings up up to 7.5 per cent from their budgets, quietly claiming an 11 per cent top up to his own $471,000 salary in the form of a $52,000 optional allowance.

The allowance is meant to pay for Luxon to find accommodation in Wellington. However, few prime ministers have claimed it - Luxon is the first in at least 34 years. Out-of-towners like Jacinda Ardern have opted to live in the prime minister’s official residence, Premier House, for free. Other prime ministers like Chris Hipkins and Bill English, were already based in Wellington.

English claimed an allowance but decided to pay it back after it was revealed he claimed nearly $1000 a week to live in his family home, which was officially deemed a ministerial residence.

A spokesperson for the Prime Minister said Luxon was “claiming an accommodation allowance on his Wellington apartment in accordance with the rules”.

Prime Minister Christopher Luxon bats in a game of backyard cricket during a reception for the New Zealand and Australian test cricket teams at Premier House in Wellington. Photo / Hagen Hopkins 

Luxon already owns an apartment in Wellington, where he lives when in the capital. It is one of seven properties owned by Luxon, all of which are held without mortgages according to Parliament’s pecuniary interests register. The $52,000 allowance will cover his costs while living in the apartment.

The news that Luxon, already one of New Zealand’s wealthiest prime ministers, will become the first in decades to claim the allowance comes at an awkward time for the Government, which is asking ministries to find savings of between 6.5 and 7.5 per cent - with some exclusions.

The Government is also trimming back on the welfare bill by strictly enforcing benefit sanctions and changing the way benefits are calculated, which will mean someone on a supported living payment, the modern disability benefit, would miss out on $2300 a year by 2028.

Prime ministers have frequently complained about the condition of Premier House. Deputy Prime Minister Grant Robertson described the upstairs living quarters as resembling a 1980s motel. Ardern nevertheless stayed at the residence with her family.

The former Government commissioned a report into the work needed on Premier House. This report has been received and the Government is currently considering its options.

Premier House in Wellington.

“As has been reported, the Premier House Board Report suggests Premier House requires a significant amount of work so the Prime Minister is considering that before making any decisions around residing there,” a spokesman for the Prime Minister said.

Luxon is not the only MP to claim an accommodation allowance while owning a place in Wellington. Figures released this week show Andrew Bayly, Gerry Brownlee, Judith Collins, Simon Court, Barbara Kuriger, Melissa Lee, Mark Mitchell, Deborah Russell, Jenny Salesa, Stuart Smith, Jan Tinetti, Louise Upston, Arena Williams and Duncan Webb all claimed the allowance last year despite owning property in the capital.

Those names exclude new MPs elected in the last election whose pecuniary interests will be published later this year.

Earlier this week, Luxon hosted the Australian cricket team at Premier House. Australian cricketer Usman Khawaja claimed Luxon told him Premier House was “condemned” - something Luxon denies.

“The Prime Minister said he couldn’t live in his place,” Khawaja said.

“He said it was condemned, the kitchen was condemned ... I said, ‘why don’t you live here?’ He said, ‘I’m actually not allowed, it was condemned’.”

“I said ‘what?!’ You’re the Prime Minister, fix it!’

Luxon said he had not described Premier House as “condemned” and it was not an accurate description of its state, but he said it did have maintenance issues which needed sorting before he would move into it.

“No, it hasn’t been [condemned]. That’s not the language I have used or I was reported as using,” Luxon said.

“I was asked do I live in Premier House, and the answer is ‘no, I don’t’. As you know, Premier House has long-standing maintenance issues. A report was given to the former prime minister [Hipkins]. That same report has been passed on to me and the Government will consider what options we have available to remedy all the maintenance issues that are there. Until then, I stay in my apartment.

“It’s important because the report that Chris Hipkins got and he passed on to me, it obviously needs investment. How we can manage that in the times we’ve got and the cost of living crisis is difficult.”

Asked if he thought Premier House was liveable, he said: “At the moment there are long-standing maintenance issues with the apartment there and the house in general.”