Welfare payments paused for thousands as MSD admits processing backlog, details remain scarce
The Ministry of Social Development says over 30,000 welfare payments were mistakenly stopped, but it has not disclosed how many other claimants were affected.
An internal review by the Ministry of Social Development revealed that a legislative mistake and subsequent processing delays led to over 30,000 welfare payments being wrongly paused. The problem stemmed from a law requiring beneficiaries to confirm their circumstances each year, overwhelming staff and causing some payments to be halted. While more than 2,400 Supported Living Payment recipients were confirmed to have suffered losses, the ministry now says that Jobseeker and Sole Parent Support claimants could also be impacted, but it refused to give exact figures or the total amount owed.
Service delivery general manager Shannon Soughtton attributed the issue to seasonal demand spikes, complex cases, and difficulty contacting clients. The minister’s office said workloads were monitored and resources reallocated, yet opposition spokesperson Willow-Jean Prime demanded full disclosure, blaming recent policy changes for the fallout.
Why it matters
Thousands of New Zealanders may have missed essential welfare payments due to administrative failures.
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