Government clarifies welfare and ACC payments

The Government has passed legislation clarifying the law on the impact of ACC payments on welfare entitlement to make sure the process is fair for everyone.

Social Development and Employment Minister Louise Upston says the Social Security (Accident Compensation and Calculation of Weekly Income) Amendment Act fixes an anomaly which saw one group of people being treated differently to another.

"This involves one group of people who receive ACC and welfare assistance at the same time, and others who receive welfare assistance while their ACC claim is being considered.

"Until now, as interpreted by the courts, the latter group, who receive lump sum payments, have been treated more generously than the former.

"This hasn't resulted in equal treatment and isn't in line with the policy intent. Put simply - it hasn't been fair. The Government had a duty to fix this situation and clarify the law and that's what we've done.

"We have worked carefully to overcome the anomaly which arises if there is an overpayment with MSD benefit and supplementary allowance payments while their ACC claim is being considered.

"As a result of the Select Committee process, Cabinet agreed that all individuals who were actively seeking a review of the decision by MSD prior to the introduction of this Bill will be treated in accordance with the decisions of the Appeal Authority and High Court.

"I accept that there will be a range of reasons why people are claiming ACC, and some of those are incredibly challenging and traumatic, but ultimately there should be no difference in MSD support between someone who is paid weekly ACC versus someone who gets a backdated payment.

"We want the process to be fair and equitable and not treat two separate groups of ACC recipients differently."