Hon Scott Simpson
Minister for ACC

New Zealand’s Accident Compensation Corporation (ACC) is delivering its strongest rehabilitation performance in over a decade and getting New Zealanders back to work and independence faster, Minister for ACC Scott Simpson says.

“For too long, New Zealanders have been languishing on ACC and not getting the support they need. That is teachers, nurses and farmers that are stuck on the scheme and not able to get back to doing what they love.”

That is why ACC were asked to improve their performance in a recent Letter of Expectations, and put rehabilitation back at the heart of what they do.

In response, the board produced a Turnaround Plan to return the organisation to its best ever performance.

“I was pleased to see the Turnaround Plan built around the priorities set out in the Letter of Expectations: putting clients first with care that supports lasting recovery, helping New Zealanders return to work and independence, and resetting ACC by getting the organisation back to basics.”

Today, the first signs of progress were published in ACC’s first public-facing monthly turnaround report. The report shows the growth rate of the Long-Term Claims Pool has reduced to 1.8 percent - the first time since 2014 it has been less than 2%.

“When National left office in 2017, growth in the long-term claims pool was 3 percent and trending downward. Under Labour, this increased to more than 14 percent, equating to almost 200 additional people each month spending over a year on the scheme.

“That level of growth was unacceptable, which is why we have taken action to improve performance and support better outcomes for claimants.”

The January Turnaround Plan report also shows return-to-work rates lifted across all timeframes, with more clients regaining independence sooner.

“Faster rehabilitation means injured people are returning to work faster, supporting their families and being active in their communities,” Mr Simpson says.

The first report shows a huge performance improvement for ACC, but more importantly, better results for injured New Zealanders.

“There’s plenty more work ahead. But today’s results are a strong indication New Zealanders will get the support they’d expect from ACC when they need it most.

“It’s just one way this Government is fixing the basics and building the future.”

Notes:

ACC’s Long-Term Claims Pool measures the number of clients receiving weekly compensation for more than one year.

The Turnaround Plan responds to the recent independent review into ACC’s claims management approach and rehabilitation performance, and an updated Letter of Expectation by Minister for ACC Scott Simpson. It also addresses recommendations in a Board-commissioned review into ACC’s organisational culture and a Treasury-commissioned review of ACC’s investment function.

Alongside the release of the Turnaround Plan in January (attached), ACC also announced a new strategy, Statement of Intent and Service Agreement that will support its performance turnaround over the next four years.

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