The government has opted against setting up a new compensation scheme for survivors of abuse in state care - in favour of putting more money into the current system.
That's despite it being the key recommendation of both the Royal Commission and the Redress Design Group.
During November's apology to survivors Prime Minister Christopher Luxon committed to a new system that would be more responsive to survivors' needs.
"But I want to assure you it is our intention to have a new single redress system operating next year," Luxon said.
The Minister-in-charge, Erica Stanford, has announced this month's Budget will commit $774 million to improve the current redress system and make changes that will endeavour to "prevent, identify, and respond to abuse in the future".
On the decision to not set up a new entity, Stanford said the government was faced with a "difficult choice".
"Do we spend more time and money on setting up a new scheme, or do we provide more to survivors now through the current redress process?" Stanford said.
"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."
The Abuse in Care Royal Commission of Inquiry found at least 200,000 people had been abused, and even more neglected, by the state and faith-based institutions since 1950.
Its final report, released last July, outlined 138 recommendations to right the wrongs of the past and to ensure the safety of every child, young person and adult in care today.
In 2021, the inquiry made 95 recommendations for establishing an independent, fair and effective redress scheme for all survivors of abuse in state and faith-based care with existing schemes to be phased out.
During November's apology to survivors, Luxon announced $32 million to support existing schemes while the coalition ironed out details of the new redress system.
Today Stanford confirmed a number of additions to the redress system over the next year:
- Increasing the average redress payments for new claims from $19,180 to $30,000;
- Providing for higher payments for the survivors who experienced the most egregious abuse;
- Providing "top up" payments of 50% to survivors who have already settled claims to ensure consistency with increased payments for new claims;
- Introducing a common payments framework so that survivors receive the same financial redress for similar experiences of abuse, regardless of where in state care that abuse occurred;
- Increase system capacity to process claims from 1350 to 2150 per year from 2027 to reduce wait times for current claimants;
- Implementing a seamless service so that survivors with claims with multiple agencies have those claims managed by one point of contact;
- Introducing a single-entry point for survivors wanting to register new claims;
- Introducing an independent review for people who are unhappy with their redress offer; and
- Funding for redress agencies to provide survivors with access to supports and services.
The $774m set aside in the Budget will also put investment into the wider care system over the next four year, including:
- Up to $71.5 million to build a capable and safe care workforce for children and vulnerable adults;
- Over $50 million to make mental health inpatient units safer and improve privacy and dignity for patients;
- $25 million towards funding initiatives with evidence of an ability to prevent the entry of children and vulnerable adults into care;
- $16 million for Oranga Tamariki for improvements to safeguarding 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," Stanford 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.
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