April 01, 2026

#national: support workers have taken legal action against Health New Zealand

Matthew Tukaki Posted On April 1, 2026

Unions representing thousands of home support workers have taken legal action against Health New Zealand, alleging workers are being forced to cover the cost of doing their jobs out of their own wages.

E tū and the Public Service Association have filed proceedings with the Employment Relations Authority, arguing the current funding model breaches the Wages Protection Act. They say Health New Zealand, as the funder of home support services, is effectively requiring workers to subsidise a public health service.

Around 23,000 home support workers travel to clients’ homes each day, caring for older people and those living with illness, injury or disability. Most rely on their own vehicles to get from one client to another.

Unions say the mileage allowance paid to workers has not kept pace with the real cost of running a vehicle. The current rate has remained unchanged since 2022, despite a legal requirement for it to be reviewed annually, and falls well below actual expenses such as fuel, maintenance, insurance and wear and tear.

Workers say the financial pressure is intensifying, with many having to carefully plan trips to reduce driving costs, while also dealing with low wages and the loss of expected pay equity increases.

Union leaders argue the situation is unsustainable and risks driving workers out of the sector, at a time when demand for home-based care continues to grow.

They say the case is about holding the Government accountable for a system that shifts operational costs onto some of the lowest-paid workers in the country.

The unions are calling for an immediate increase to the mileage rate and broader changes to ensure workers are not forced to fund essential public services themselves.