The Government has announced a $774 million investment in Budget 2025 to improve the redress process for survivors of abuse in state care and strengthen protections for vulnerable children and adults.
It won’t, however, set up a new independent redress entity, as recommended by a Royal Commission and Redress design group.
The Royal Commission, which conducted a six-year investigation into abuse across state and faith-based institutions, revealed widespread systemic failures and made 138 recommendations.
Erica Stanford, the Minister in charge Government’s Response to the Royal Commission’s Report into Historical Abuse in State Care, made the pre-Budget announcement on Friday.
“We know there is nothing we can do to take away the pain of survivors, but the Government has committed a significant investment of $774 million in Budget 2025 to improve the redress system and strengthen the care system to prevent, identify, and respond to abuse in the future,” she said.
The package included a boost to redress payments, with average payments for new claims rising from $19,180 to $30,000.
Those who suffered the most severe abuse will receive higher payments, and previously settled claims will receive a 50% “top up” to ensure parity.
The Government would increase the system’s capacity to process claims from 1350 to 2150 per year by 2027, reducing wait times for current claimants.
A single point of entry would be created for survivors registering new claims, and those dealing with multiple agencies would have their claims managed through a single point of contact.
For those unhappy with their compensation offer, an independent review process would be available.
Redress agencies would also be funded to ensure survivors can access necessary support services throughout the process.
No new compensation scheme
A key recommendation of both the Royal Commission and the Redress Design Group was for a new independent redress entity.
Stanford said the Government faced a “difficult choice” between setting up a new system or providing more to survivors now through the current process.
“For Budget 25 we have prioritised improving the current system as quickly as possible for survivors and investing in changes that have a direct impact for them.”
Beyond redress, the Government announced investments in the wider care system to be implemented over the next four years, including:
- Up to $71.5 million to build a “capable and safe” care workforce for children and vulnerable adults.
- Over $50 million to improve safety at mental health inpatient units and improving privacy and dignity for patients
- $25 million for funding initiatives with evidence of an ability to prevent entry of children and vulnerable adults into care
- $16 million to Oranga Tamariki for safeguarding improvements to reduce abuse and harm to children and young people in remand homes and in the care of individual caregivers
- $9.4 million to bolster oversight of compulsory mental health and addiction care by increasing the capacity, expertise, and availability of independent statutory roles including District Inspectors and Review Tribunals; and
- Almost $9 million for Disability Support Services to strengthen processes that recognise and respond to instances of abuse in care, by introducing additional audits on the quality of services delivered by contracted care providers and improving the systems that support the management of critical incidents and complaints.
Stanford said there would also be funding for the “continuation of the survivor experiences service who provide an important survivor-led service, better record keeping and access to records, and for an independent review of the changes to the redress system in 2027”.
“Cabinet has also decided that for new claims from survivors who are also serious sexual and/or violent offenders who have been sentenced to five years or more in prison a new process will apply.
“Modelled on similar approaches in Australia and Scotland, this will involve an independent decision maker who will need to assure themselves that a redress payment would not bring the scheme into disrepute,” she said.
Legislation establishing this will be introduced later this year, and a ministerial advisory group of survivors and advocates will be set up in the coming months to provide advice to ministers on the government’s response.
“Redress decisions, at this point, do not include claims that currently sit with school boards, faith-based organisations, or other non-state providers. The Government will be receiving further advice on this later this year,” Stanford said.
‘Misses the mark’, ‘falls severely short’: Opposition parties react
Labour leader Chris Hipkins said the Government had ignored the voices of survivors by not following the key recommendation of the Royal Inquiry.
“Putting more money into an existing redress system, that so many of the survivors have already said they have no confidence in, just isn’t good enough.”
Hipkins said the Labour Party had offered to work with the Government to ensure the words in last November’s formal apologies were lived up to but it had not been involved in the announcement today.
“We think it misses the mark and fails to live up to the Prime Minister’s lofty talk in the formal apology he delivered last year. Today’s announcement shows those were hollow words.”
Greens co-leader Marama Davidson said the party was appalled by what it described as severe underfunding of financial compensation.
“This falls severely short of real redress — our survivors deserve so much better.”
She said the Government’s apology was “empty air” without action and it had failed survivors by “repeating the mistakes of old”.
“The Government is not only failing to heal the wounds of our past but is risking opening up new ones without real redress and a repeat of old mistakes.”
