The Government is abandoning homeowners when they need it the most.

That's what Labour MP, Megan Woods, says following EQC's shock announcement of laying off staff.

EQC will slash hundreds of jobs by January, around 40 from Canterbury alone, while only half of the thousands of second time repairs will wrap up by the end of the year.

As of 2017 the organisation is proposing the reduce staff numbers from 868 to 383.

Ms Woods said the slash of staff on the ground in Christchurch is a huge mistake.

"To think that you can move it all up to Wellington and to do it from here shows just how out of touch the Government is.

"This is a job that is not done, and that the Government thinks is time to cut and run on the people of Canterbury is beyond belief from me."

EQC Chief Executive Ian Simpson said the job cuts are because the face-to-face work in Canterbury is expected to be complete by the end of the year, with the focus being on more administrative work next year.

However, he said well over half the staff will work on activities related to Canterbury, but this will drop off during next year.

Lawyer for some claimants, Duncan Webb, said the move to cut jobs is bound to add time on the clock for claimants.

"My experience with EQC is that they take months, and months and months to do simple tasks and I can't see how laying off staff is going to assist with that."

Mr Webb said there are still hundreds of unresolved EQC claims being processed.

"And that's the tip of the iceberg. There are still thousands of people in Christchurch who have unresolved claims with EQC or who have issues with the standard of work that EQC has delivered."