A pensioner in frail health was left distressed and out of pocket after both his Winter Energy Payment and Disability Allowance were stopped due to government botch-ups.

Tom Evison, 84, was a victim of two separate but related problems that saw thousands of people's Work and Income payments wrongly suspended.

"This was very distressing for a pensioner," he told RNZ.

The Ministry of Social Development (MSD) has launched a review into the two problems following a law change last year, which required many beneficiaries to confirm their circumstances annually to ensure they remained eligible for their payments.

The Winter Energy Payment should have been exempt from that process, but it was not, which meant thousands of pensioners missed out on payments they should have received.

Secondly, processing delays caused by a high volume of people confirming their circumstances meant some paperwork was not checked in time, so their benefit payments stopped.

Evison was affected by both.

He receives his Superannuation, Winter Energy Payment and Disability Allowance in one payment each fortnight.

He said he was distressed to receive a letter on July 25, dated July 21, telling him his Winter Energy Payment and Disability Allowance would stop because he had not confirmed his circumstances by the deadline of July 28.

"To penalise me a week earlier than the deadline was ridiculous," he said.

MSD said it automatically sends a reminder letter seven days before someone's paperwork is due, reminding them of what they need to do to prevent their payments stopping.

Evison had already visited his local Work and Income service centre on July 21 - the date of the letter - to drop off the required documents.

But: "They had carried out their threat to reduce the pension, which is a worry for an old fella," he said.

"I live on the pension, I have no other source of income."

Evison's fortnightly payment was about $200 short, which he said made a big difference.

"It's a week's groceries," he said.

"I'm an old man, I'm not making a political statement, I'm simply pointing out a defect in a government agency threatening old people."

 

MSD's Nelson, Marlborough and West Coast regional commissioner Craig Churchill confirmed Evison had submitted his documents on time and his payments should not have been stopped.

"We apologise again for the distress this caused," he said.

"His Disability Allowance was stopped on 28 July, due to the CYC [confirming your circumstances] processing delays, and his Winter Energy Payment was stopped as well, due to the omission of the WEP from legislation."

Churchill said Evison was backpaid the following week, and his full payments resumed.

"We sent a message on the same day apologising to him for what he'd experienced," he said.

MSD and Social Development Minister Louise Upston had previously apologised to everyone affected by the bungled payments, and confirmed they had been backpaid.

MSD's review is due on Thursday.