April 05, 2026

#national: Fuel Relief at Last: Government Lifts Mileage Rates for Home Support Workers

Matthew Tukaki Posted On April 5, 2026

Home and community support workers across Aotearoa are set to receive a boost to their mileage payments, as the Government responds to mounting pressure from rising fuel costs and growing concerns about workforce sustainability.

The latest decision introduces a temporary 30 percent increase in mileage rates, aimed at helping offset the escalating cost of petrol for workers who rely on their own vehicles to deliver essential care services.

The move comes after weeks of advocacy, protests, and warnings from unions and sector leaders that workers were effectively subsidising the health system out of their own pockets. Many support workers travel significant distances each day to assist elderly, disabled, and vulnerable people, often covering the cost of fuel, maintenance, and vehicle upkeep themselves.

Until now, reimbursement rates had failed to keep pace with real-world costs. Workers were being paid well below standard vehicle usage rates, with payments often averaged across short distances regardless of the actual kilometres travelled.

The growing gap between reimbursement and actual expenses has placed increasing strain on a workforce already facing low wages and high workloads. Rising fuel prices – driven by global pressures – have only intensified that burden, with some workers reporting having to choose between basic household needs and the cost of getting to their clients.

The increase in mileage rates is being seen as a short-term measure to ease immediate pressure, but questions remain about long-term solutions. Sector advocates have consistently called for a full review of the funding model, arguing that current arrangements are outdated and structurally flawed.

There are also concerns about workforce retention. Home support workers play a critical role in enabling people to remain in their own homes, reducing demand on hospitals and residential care. However, ongoing financial pressure risks driving workers out of the sector, potentially creating gaps in essential services.

The decision signals recognition from the Government that the issue has reached a critical point. However, it also highlights broader challenges within the health and community care system, where funding, workforce conditions, and rising costs continue to intersect.

For many workers, the increase offers some relief, but it does not fully resolve the underlying issues. The focus is now likely to shift toward whether further changes will follow, particularly as fuel prices remain volatile and the demand for home-based care continues to grow.

As Aotearoa grapples with the wider cost-of-living crisis, the situation facing home support workers is a clear example of how frontline services are being impacted – and how urgently sustainable solutions are needed.