UPDATED 1.01pm: The Prime Minister refuses to accept there is a housing crisis.

John Key argues people living in cars and garages should seek help from Work and Income.

Mr Key says a lot's being done to relieve the shortage of housing and says there's little point in using terms like crisis which won't solve the supply problem.

"The opposition parties always use emotive terms like that. I think what's much more helpful is to say what are the steps that need to be taken, and are being taken."

However, New Zealand First leader Winston Peters has placed the blame for what he insists is a housing crisis squarely on the shoulders of the government.

Winston Peters told Mike Hosking the current government has also created strains on infrastructure, education and health.

"It's been of the National Party's making, with a record 21 months in a row immigration and offshore buying - of course you've got a crisis."

In state housing alone, 900 houses are being built across the country.

But Labour leader Andrew Little said not enough is being done.

"Let's have a comprehensive, state-led house building programme that deals with all those issues. If it means better quality inspections, they better find a way to do it. If it means building the workforce, and we will have to do that, then there are means to do that because we've done it before."

Labour said Housing Minister Nick Smith's not the man to solve what they also say is a housing crisis in this country.

Mr Little said Mr Smith has failed at every turn and a plan should have been put in place a long time ago to tackle the problem.

"We have a major problem. We have to start somewhere. It starts with a Government accepting there's a problem, getting it's act together, and getting a plan together. Part of a plan will be building the workforce that goes with developing the houses."

Social Housing Minister Paula Bennett said it's a very real issue for people who find themselves without a roof over their heads but work is being done.

"This isn't a brand new problem. I've been working on it since early last year. I had a task force put together. It is something that we as the government take seriously."

The Finance Minister is hinting at social housing announcements in Thursday's Budget, but specifics remain off the table for now.

Bill English has spoken in broad terms about this week's Budget at a printing press photo-op today.

While speaking in generalities about the possibility of social housing announcements, he isn't going into detail.

"Look you'll just have to wait and see about the detail, but we're continuing with our changes in social housing."

English says when it comes to housing money isn't the problem, it's actually getting more houses.

"But our challenge is the same as everyone else's, and that is actually just finding enough houses that meet our needs."