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Posted on:  
March 24, 2026
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Time to raise mileage allowance for first time in four years

The Government’s decision to increase income support for low paid workers will not go far enough for 23,000 home support workers hit hardest by sharply rising petrol prices, and that a faster, simpler fix remains available right now.

Today’s announcement on increases to income support for working families fall well short of what home support workers need given many are filling up their own cars at least twice a week and many do not have dependent children.

"This is a really disappointing decision and completely ignores the financial pressure on these essential workers," said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi. "These workers have already had their pay equity claim cancelled by this government.

"Nicola Willis promised to help workers ‘acutely impacted’, but she has ignored home support workers. They are low paid, predominantly female workers who provide critical care to elderly and disabled New Zealanders every day. They are the only publicly funded workers required to use their own vehicles in this way. Rising petrol prices hit them directly in the pocket with every shift.

"If the Government is serious about protecting working people from this fuel crisis, it needs to do better and it still can. The Government has a fast, ready fix available by raising the mileage allowance."

The Home and Community Support (Payment for Travel Between Clients) Settlement Act 2016 requires Health NZ Te Whatu Ora to pay home support workers a mileage rate. The allowance was last adjusted four years ago and is due for review (see explainer below).

"The Health Minister could direct that rate to be lifted immediately, no complicated fiddling with the tax and transfer system, no delay, just fast, real help for the people who need it most."

Palmerston North home support worker Susan Miers is very disappointed. "It’s not very much really - it’s not going to make a difference to us," In a typical day, Susan drives between clients across the city and the wider Manawatū region.

"I’m paying $40, $50 more a week than I was just a couple of weeks ago. It’s coming out of my food budget, because it’s the only thing I can change. I’ve already had to borrow money off of people to make things work."

Fleur Fitzsimons: "The Government has ignored these workers in their time of need, rubbing more salt into their wounds. It’s disgraceful.

"The PSA will continue to fight for workers doing essential mahi in this crisis, workers who have no choice, but to drive to the people they care for every day. They deserve help now more than ever."

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