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Petition Launched To Stop Government's Clawbacks From Weekly Compensation

Acclaim Otago is calling on Members of Parliament to urgently amend the Social Security (Accident Compensation and Calculation of Weekly Income) Amendment Act 2026, following the submission of a public petition highlighting serious concerns about its impact on injured New Zealanders.

The petition requests that the House of Representatives introduce key safeguards into the legislation to ensure fairness and prevent undue hardship. Specifically, it calls for limits on the recovery of supplementary benefit payments received in good faith or where delays in ACC claim recognition were not caused by the claimant. It also seeks to exclude Disability Allowance and rehabilitation-related supplementary assistance from recovery provisions, introduce a hardship and proportionality safeguard, enable decision-making discretion, and remove the retrospective application of the law.

Dr Powell, President of Acclaim Otago says the current framework creates significant inequities between claimants, particularly those who experience delays in having their ACC claims approved.

“People whose claims are accepted early receive timely treatment and rehabilitation funded by ACC. However, those facing delays—often through no fault of their own—are forced to rely on Ministry of Social Development support, including supplementary assistance, to cover the same essential costs,” said Dr Powell.

“Under the current amendment, once ACC cover is granted, these individuals are required to repay that support from their weekly compensation. This effectively penalises people for administrative delays and places an unfair burden on those already in vulnerable circumstances.”

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The petition also raises concern about the retrospective nature of the amendment, which applies recovery rules to payments already made, further compounding financial stress for affected individuals.

“We have explained to the Minister that these changes impact people in ways that are not adequately acknowledged. They disproportionately affect some of the most vulnerable members of our society and risk undermining trust in the system,” Dr Powell said.

Acclaim Otago is urging Parliament to consider the real-world consequences of the legislation and to adopt a more balanced approach that upholds fairness, compassion, and proportionality.

“This is about ensuring that injured people are not pushed further into hardship due to systemic delays beyond their control. We need a system that supports recovery—not one that creates additional barriers.”

The petition can be accessed here

https://petitions.parliament.nz/1377fbdb-77f9-40fc-ea68-08de79d1545f?lang=en

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