Grants of up to $NZ5000 are now available to help those struggling to find a home in Auckland to move out of the city.

The grant, announced by the New Zealand government a day before last month's budget was handed down, is now available to those living in social housing, on the social housing waiting list or those eligible for social housing and won't have to be paid back.

Social Housing Minister Paula Bennett says the voluntary measure will help remove the cost barrier that may prevent people from moving.

"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," Ms Bennett said.

"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 grant can be used for moving costs, bonds, letting fees and other expenses and applies for moves into a social house or a private rental.

The amount of the grant will depend on factors such as the distance moved, household size and what belongings need to be moved.

But Labour Party leader Andrew Little is accusing the government of "simply kicking this problem down the road".

"Several agencies working with homeless have said this scheme will have little impact on Auckland's housing crisis," he said.

"Moving a few dozen families out of the city is simply not enough. This is knee-jerk policy at a time when the government should be laying out a credible plan to deal with homelessness and the wider housing crisis."