Government increasing mileage rates for home and community support workers amid surging fuel prices

PM Christopher Luxon acknowledged the workers were critical, and Health Minister Simeon Brown said the Government recognised the vital role they play in the health system. Photo / Mark Mitchell

Home and community support workers are getting a temporary 30% boost to their mileage rates as fuel prices surge amid conflict in Iran.

It comes after an industry association boss warned the Government that fuel costs could prevent some workers from accessing clients, leading to potentially more hospital admissions and avoidable deaths.

Prime Minister Christopher Luxon acknowledged these workers were critical, and when their work was done well, it led to people getting support in their homes rather than in hospitals.

“Their roles require frequent daily travel to provide care to homes. These workers are skilled, they are hard-working, and they are passionate. They do work that makes a real difference.”

The changes would increase mileage rates for workers from 63.5 cents to 82.5 cents per kilometre.

Responses to the mileage increase are mixed. The Public Service Association (PSA) has ongoing litigation arguing that Health NZ is breaching the law by requiring home workers to provide their own vehicles.

The PSA said the 30% increase was a positive step, but did not go far enough.

“A temporary fix does not cut it. It must be higher, it must be made permanent.”

But the chief executive of the Home Care and Health Association, Lisa Foster, who had petitioned the Government for a support package via two letters sent last month, described the increase as “the best Easter present we could ask for.”

“It is fantastic. Our message is thank you. It means [the workers] can take a breath ... it means that they can deal with the cost-of-living crisis.”

Last month, Foster wrote to Government ministers to say providers were gravely concerned some staff were choosing not to visit certain rural clients because they could not fill up their car with gas.

“Without immediate intervention, we anticipate vulnerable people will experience preventable deterioration at home, leading to increased hospital admissions, and potentially avoidable deaths.”

Foster told the Herald today she felt the support package would mitigate these challenges.

In her letters, which were sent before the Government’s support package announcement, Foster said there was an “untenable” gap between fuel costs and what workers were reimbursed.

“Concerningly, the combination of above means that it is very likely that many support worker will be remunerated at effectively less than the minimum wage after this increase in travel costs.”

The support package was announced today by Health Minister Simeon Brown, who said the Government was acting quickly to ease the pressure of rising fuel costs for these workers.

Brown said the solution was sensible and pragmatic. It was expected to affect around 17,000 workers.

The increase would remain in place for up to a year or until the price of 91 petrol had fallen below $3 a litre for four consecutive weeks, he said.

“I think on average they drive around 6500km per year for their jobs. It is an immediate change to contracts, and it comes into effect today.”

The increase was expected to cost Health NZ around $20 million if it were in place for a year, he said.

“We deeply value the meaningful work they carry out in communities across the country,” he said.

It would apply to home and community support workers who work for providers contracted to Health New Zealand, the Ministry of Social Development, and ACC.

“We can’t control global fuel prices, but we can make sure workers delivering essential care are supported to keep services running,” Brown said.

“Temporarily increasing the mileage rate for these workers recognises the vital role they play in our health system and helps ensure they can continue delivering quality care to those who need it most.”

Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.