CLCA chief executive Sue Moroney said this delay can be years and in the meantime, some people will receive supplementary assistance from MSD. Supplementary assistance includes payments like the accommodation supplement, disability allowance and winter energy payment.
MSD has been requiring people to repay any supplementary assistance received during the period the ACC back payment related to, Moroney said.
“These debts were often very large, and beneficiaries were often not in a position to repay MSD these amounts, having spent the supplementary assistance in good faith at the time on essential costs such as accommodation, heating and food.”
The court ruling would have meant those with such debts after receiving ACC back pay could have had those debts wiped.
Prime Minister Christopher Luxon and Minister for Social Development and Employment Louise Upston during a Jobseeker announcement in October last year. Photo / Dean Purcell
However, Social Development and Employment Minister Louise Upston said the court’s interpretation would mean these people were “in effect receiving two forms of income support to address one need”.
There were two main cohorts of ACC compensation recipients in the welfare system:
People who receive ACC and welfare assistance at the same timePeople who receive welfare assistance while they wait for ACC to decide on their entitlement
“Under the current situation, as interpreted by the courts, the latter group, who receive lump sum payments, are treated more generously than the former,” she said.
“This would not result in fair treatment between these groups and isn’t in line with the policy intent.
“The Government has a duty to fix this situation and clarify the law, so it aligns with the longstanding intent of policy.”
The legislation will go before a parliamentary select committee for public submissions for one week.
Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.