Local Labour List MP Dan Rosewarne says the Government's proposed retirement village repayment changes leave existing residents behind and still make seniors wait too long for money that already belongs to them.

Mr Rosewarne said the detail missing from the Government's announcement on retirement village repayment policy was that the new protections would only apply to contracts signed after the legislation comes into force. "People already living in retirement villages would miss out on these protections," he said.

"If you've already invested your life savings in a village, you deserve the same protections as someone who signs a contract tomorrow."

Mr Rosewarne said Labour's alternative policy would apply to both current and future residents, require full repayment within three months, and provide an automatic payment of 10 per cent of capital within five working days.

"People shouldn't have to wait months to access their own money. Labour's policy gets money back into residents' hands sooner, whether they are moving into care, relocating, or whether families are dealing with an estate after the loss of a loved one."

Mr Rosewarne said timely repayment mattered when residents needed to move into care or another home, and when grieving families were facing funeral and estate costs.

"The Government's proposal would still allow operators to hold on to most of a resident's money for up to nine months.

"Families face immediate costs after losing a loved one, but the Government's automatic 10 per cent payment would not be available to estates."

"Seniors should not be providing interest-free finance while they are trying to fund their next move, or while families wait for estate funds to be released."

Mr Rosewarne said Labour recognised that some small, rural and charitable villages faced genuine financial constraints.

Rather than exempting all villages with fewer than 50 units, Labour's proposal would allow targeted relief where an operator can demonstrate financial hardship.

"We can protect genuinely vulnerable villages while still expecting operators with greater resources to meet fair repayment standards."