April 03, 2026

#national: MILEAGE HIKE DISMISSED AS “A JOKE” BY SUPPORT WORKERS

Matthew Tukaki Posted On April 3, 2026

The Government’s latest move to increase mileage payments for home support workers is being slammed as inadequate, with unions warning it fails to keep pace with soaring fuel costs.

Health Minister Simeon Brown has announced a 30 percent increase to the mileage reimbursement rate, lifting it from 63.5 cents to 82.5 cents per kilometre, the first adjustment since 2022.

But worker advocates say the increase falls well short of what is needed, describing it as out of touch with the real cost of doing the job.

Home support workers, many of whom are low-paid and rely on their own vehicles, travel between clients daily to provide care for elderly, disabled and injured people. Rising petrol prices have significantly increased the cost of that work, leaving many workers effectively subsidising the system out of their own pockets.

Union representatives say the new rate still lags behind the Inland Revenue benchmark for vehicle use, which sits at over a dollar per kilometre, highlighting a persistent gap between reimbursement and actual expenses.

The issue has become more urgent amid the ongoing fuel crisis, which has pushed petrol prices above three dollars a litre and placed additional pressure on workers already struggling with low wages.

There are warnings that without meaningful change, the sector could face workforce shortages, as workers weigh up whether they can afford to remain in their roles.

Advocates say the current system is outdated, with mileage often averaged across short distances that do not reflect the reality of travel, particularly in rural and regional areas.

Calls are continuing for a full review of the funding model, with unions arguing a simple and immediate fix would be to lift the mileage rate to better reflect actual costs.

The growing frustration comes as thousands of home support workers across Aotearoa continue to shoulder the burden of rising fuel prices while delivering essential care services in communities nationwide.