NZ Commits $774M to Reform Redress and Care Systems Following Abuse Inquiry

The New Zealand Government has unveiled a $774 million investment in Budget 2025 aimed at overhauling the redress and care systems, in direct response to the findings and recommendations of the Royal Commission of Inquiry into Abuse in Care. The landmark Commission, which ran over six years, exposed harrowing accounts of systemic abuse and neglect across both state and faith-based institutions. Its final report laid out 138 recommendations, pushing the government toward comprehensive reforms.

Addressing the Past: A Stronger Redress System for Survivors

In her statement, Minister Stanford acknowledged the deep trauma endured by thousands of survivors. While nothing can undo the suffering, she emphasized that the government's priority is to offer meaningful redress now, rather than delaying support by developing a new entity from scratch.

Key redress reforms include:

• Increased Redress Payments: The average redress payment for new claims will rise significantly, from $19,180 to $30,000. Survivors who endured the most severe abuse will be eligible for higher payments.

• Top-Up Payments: Survivors who have already settled claims will receive additional “top-up” payments of 50% to align past settlements with the revised scheme.

• Consistency in Compensation: A common payments framework will ensure survivors receive equitable financial redress for similar abuse experiences, irrespective of the agency or institution involved.

• Boost in Claims Processing Capacity: By 2027, the capacity to process redress claims will grow from 1,350 to 2,150 annually, helping reduce backlog and waiting times.

• Simplified Access: A single-entry point will be introduced for survivors to register claims, accompanied by a seamless system allowing one point of contact for those with claims spanning multiple agencies.

• Independent Review Mechanism: Survivors unhappy with their redress offer will have access to an independent review, bolstering transparency and trust.

• Expanded Survivor Support Services: Redress agencies will receive funding to improve survivors' access to counseling, legal aid, and other support services.

These measures prioritize expediency and impact, focusing on delivering justice to survivors within the existing system. However, the government has signaled openness to future changes, including revisiting the idea of an independent redress entity.

Investing in Prevention: A Safer and More Capable Care System

Alongside redress enhancements, Budget 2025 commits substantial funding toward improving New Zealand’s care ecosystem to prevent future abuse. Over the next four years, investments include:

• $71.5 million to strengthen and professionalize the care workforce supporting vulnerable children and adults.

• $50 million+ for improving safety, privacy, and dignity in mental health inpatient units.

• $25 million for evidence-based initiatives aimed at preventing children and vulnerable adults from entering state care.

• $16 million for Oranga Tamariki to improve safeguarding protocols in remand homes and individual caregiving situations.

• $9.4 million to expand oversight of compulsory mental health and addiction services by enhancing statutory roles like District Inspectors and Review Tribunals.

• $9 million for Disability Support Services to enhance quality audits, complaint management, and incident response systems.

Survivor-Centered Services and Accountability

Funding will continue for the Survivor Experiences Service, a survivor-led initiative offering support and advocacy. The government will also improve recordkeeping and access to records—a key concern raised by many survivors during the Commission’s inquiry. In 2027, an independent review will evaluate the effectiveness of the revamped redress system.

A Careful Balance: Handling Complex Cases

In a sensitive yet necessary development, Cabinet has agreed to introduce a new process for handling redress claims made by survivors who are also serious violent or sexual offenders sentenced to five years or more in prison. Drawing on models from Australia and Scotland, an independent decision-maker will assess such claims to ensure that payments do not bring the scheme into disrepute. Enabling legislation is expected later in 2025.

Survivor Voices to Guide Implementation

To maintain survivor engagement and oversight, a Ministerial Advisory Group composed of survivors and their advocates will soon be formed. This group will provide advice on implementing reforms and guide the next phase of the government’s response.

Notably, redress decisions currently exclude claims involving school boards, churches, and other non-state providers. The government will consider further advice on these areas later this year.

Looking Ahead: A Full Response Plan Coming Soon

While Budget 2025 represents a major step forward, Minister Stanford affirmed that the government’s work is far from over. “The wider work on the Crown response to the Royal Commission’s recommendations continues to be a priority. I expect to release our full response plan in the coming weeks,” she said.

This comprehensive response represents a crucial turning point in acknowledging the failures of the past and laying the groundwork for a more just and protective care system. It reflects a growing commitment to ensure that abuse in care is never repeated—and that those who suffered are heard, respected, and compensated with dignity.