ACT proposes $653 million cut to disability benefits, drawing sharp criticism
ACT's fiscal plan includes a $653 million reduction in disability benefits over four years, prompting accusations from the Green Party and Labour that the cuts favor the wealthy.
ACT unveiled a fiscal blueprint that would cut disability benefits by $653 million over a four-year period, contingent on the party forming government. Leader David Seymour argued the policy would introduce independent medical certification and eliminate the need for yearly proof of disability for those truly unable to work. Critics, including Green Party co-leader Chlöe Swarbrick, accused ACT of diverting resources to the affluent by also proposing to remove KiwiSaver government contributions and tax gains.
Labour’s finance spokesperson Barbara Edmonds described the package as a series of cuts that disproportionately affect the poorest, adding that the public deserves clarity on who will lose support. Seymour dismissed fears of backlash, saying disabled individuals are weary of constantly proving their status and would benefit from stable, long-term assistance. The debate highlights broader tensions over New Zealand’s social spending and tax policy.
Why it matters
The proposal could significantly reduce support for disabled New Zealanders while reshaping the country's tax and welfare system.
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