The New Zealand government plans to claw back benefit payments from survivors of state abuse, a move advocates say will "financially cripple" people who have already suffered decades of trauma at the hands of the state.
The Ministry of Social Development's policy, reported by RNZ, would deduct compensation payments from future benefit entitlements for abuse survivors, effectively reducing the redress they receive.
Survivors of abuse in state care—including orphanages, foster homes, psychiatric institutions, and youth detention centers—have fought for decades for recognition and compensation. Many suffered horrific physical, sexual, and psychological abuse while under state guardianship.
The Royal Commission of Inquiry into Abuse in Care, which concluded in 2021, found that hundreds of thousands of children and vulnerable adults were abused in state and faith-based institutions between 1950 and 1999. The inquiry made sweeping recommendations for redress.
But now the government proposes to offset compensation payments against benefit entitlements, meaning survivors on welfare would see their benefits reduced or eliminated. Advocates describe it as "taking with one hand what they give with the other."
Mate, the state abused these people as children, failed to protect them, and now wants to claw back the pittance it's finally agreed to pay them. It's unconscionable.
Survivor advocate Fa'afete Taito told RNZ that many abuse survivors struggle with ongoing mental health issues, addiction, and inability to maintain employment—direct consequences of the trauma they experienced in state care. They rely on benefits to survive.
"The government is effectively saying: 'We're sorry we abused you, here's some compensation, but we're taking it back because you need welfare support due to the trauma we caused,'" one advocate said.
The policy has drawn comparisons to Australia's approach to redress for Indigenous Stolen Generations survivors, where compensation is treated as income and can affect benefit eligibility. Critics in both countries argue this undermines the concept of redress.
Opposition MPs have called for the policy to be scrapped, arguing it violates the spirit of the Royal Commission's recommendations. They've urged the government to treat abuse compensation separately from benefit calculations.
The government has defended the policy as consistent with existing benefit rules, but advocates say special provisions should apply given the extraordinary circumstances of state abuse survivors.
