Recently, the High Court ruled MSD was wrong to do this, but the Government disagreed and has introduced legislation to reverse the court decision. Survivors left ‘worse off’Rupert O’Brien, law reform co-ordinator for Community Law Centres Aotearoa, said a portion of the 40,000 people expected to be impacted were survivors of abuse in state care. In 2024, a landmark Royal Commission inquiry revealed “unimaginable” and widespread abuse in state care and faith-based institutions between 1950 and 2019. “This would not result in fair treatment between these groups and isn’t in line with the policy intent.”Upston confirmed the compensation payments to abuse in care survivors were not affected by the debt law change. Green MP Ricardo Menéndez March urged the Government to honour the court case instead of imposing debt on a number of beneficiaries.

Source: New Zealand Herald February 19, 2026 01:35 UTC