{"id":250012,"date":"2026-01-24T19:46:12","date_gmt":"2026-01-24T19:46:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/250012\/"},"modified":"2026-01-24T19:46:12","modified_gmt":"2026-01-24T19:46:12","slug":"acc-deficit-plan-may-be-more-costly-for-taxpayers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/250012\/","title":{"rendered":"ACC deficit plan may be more costly for taxpayers"},"content":{"rendered":"<p>A lawyer who helps people with ACC claims says the agency&#8217;s plan to get its finances in order appears to be a social licence to remove people from the long-term claims pool.<\/p>\n<p>The Accident Compensation Corporation\u00a0 is\u00a0trying to avoid a $26 billion deficit\u00a0by 2030.<\/p>\n<p>The government agency said it would hire nearly 300 more claims management staff, with a focus on getting non-serious injury clients back to work or independence.<\/p>\n<p>Lawyer and advocate Warren Forster said data for the last five years shows only 10% of people taken off long-term claims returned to work.<\/p>\n<p>&#8220;It&#8217;s not only going to cost ACC more, it&#8217;s going to cost taxpayers more and it&#8217;s going to transfer the long term cost of injury to society and the whole purpose of ACC is to reduce that cost.&#8221;<\/p>\n<p>He said people who could not return to work who were removed from the long-term claims pool instead sought benefits or support from family.<\/p>\n<p>&#8220;Once someone&#8217;s been off work for two years it&#8217;s very difficult to get that person back to work for a while variety of reasons.&#8221;<\/p>\n<p>Forster said the agency had made hundreds of people redundant over the years.<\/p>\n<p>&#8220;ACC spent 20 years training and developing fantastic people who were really good at rehabilitation. Then they invented this new computer system, they spent $1 billion on it and fired nearly all of them.<\/p>\n<p>&#8220;Now they&#8217;re saying they&#8217;re going to bring in 300 and it&#8217;s going to solve it &#8211; absolutely not.&#8221;<\/p>\n<p>ACC exited more than 8000 long-term clients in the year to June 2025 and planned to exit 11,000 more by June 2026, using AI to help decide which long-term claimants should go back to work.<\/p>\n<p>The cull came as ACC&#8217;s rehabilitation performance was in decline, with more people getting injured and taking longer to recover.<\/p>\n<p>With looming debts and liabilities on its books, ACC Minister Scott Simpson instructed his agency to\u00a0reduce the number of people receiving compensation\u00a0for more than a year, which was about 25,000 &#8211; the highest it had ever been.<\/p>\n","protected":false},"excerpt":{"rendered":"A lawyer who helps people with ACC claims says the agency&#8217;s plan to get its finances in order&hellip;\n","protected":false},"author":2,"featured_media":250013,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[42,43,40,38,41,39],"class_list":{"0":"post-250012","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-headlines","9":"tag-news","10":"tag-top-news","11":"tag-top-stories","12":"tag-topnews","13":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/250012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=250012"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/250012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/250013"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=250012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=250012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=250012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}