#economy: Fuel crisis deepens for home support workers as mileage rates fall behind costs

Home support workers across Aotearoa are facing growing financial strain as fuel prices surge, with new concerns that current mileage reimbursements are no longer keeping pace with the true cost of doing the job.

Union representatives and sector advocates say the gap between what workers are paid for travel and what they actually spend on fuel and vehicle costs is widening, leaving many effectively subsidising the health system.

At present, workers are reimbursed at around 63.5 cents per kilometre, with travel often averaged to short distances per visit regardless of the actual kilometres travelled. This system is being criticised as outdated and unrealistic, particularly for workers covering large geographic areas or making multiple visits each day.

The issue is being compounded by rapidly rising petrol prices, which have increased significantly in recent weeks, placing additional pressure on a workforce already dealing with low wages and high workloads.

Home support workers play a critical role in delivering in-home care to elderly, disabled, and vulnerable people, enabling many to remain in their homes rather than entering residential care. However, the cost of travelling between clients is becoming a major barrier to sustaining that work.

Advocates say the current reimbursement model fails to reflect real-world conditions, including longer travel distances, traffic delays, and the increasing cost of maintaining vehicles. They argue that the mileage rate has not kept up with inflation or the Inland Revenue’s recommended rates for using personal vehicles for work.

There are warnings that without urgent adjustments, the sector could face increased staff shortages as workers struggle to absorb rising costs. Many are already among the lowest-paid in the country and rely on their own vehicles to carry out their duties, making them particularly vulnerable to fuel price increases.

Unions are calling for an immediate review of the mileage rate and broader changes to how travel is funded, including aligning payments more closely with actual costs and ensuring workers are not left out of pocket.

The growing pressure highlights wider challenges within the health and community care system, where workforce sustainability remains a key concern as demand for services continues to rise.

With winter approaching and fuel prices expected to remain volatile, the issue is likely to intensify, adding urgency to calls for Government action to support one of the country’s most essential, yet under-resourced, workforces.