Rising disability benefits don’t prove welfare abuse

Media Release: Long Covid Support Aotearoa, 30 October

Long Covid Support Aotearoa (LCSA) is challenging recent political claims about health-related benefits, saying rising numbers do not prove welfare abuse. 

Before cutting support, politicians need to understand why more people are unable to work, including the possible contribution of Long Covid. Proposed cuts risk penalising people who can’t work because of illness.

The call comes as ACT proposes significant cuts to disability benefits, while National has flagged future cuts to Jobseeker Support that would affect some people receiving the benefit on health or disability grounds.

The number of people receiving Jobseeker Support for health or disability rose by 22% between September 2021 and September 2026, according to Ministry of Social Development (MSD) figures.

At last week’s Powerbrokers’ Debate, ACT leader David Seymour said some New Zealanders were “absolutely” receiving benefits when they shouldn’t be.

LCSA says such claims risk undermining trust in people with health conditions and the health professionals who support them.

“Before politicians decide that rising benefit numbers are evidence of a system being abused, they need to understand what’s driving those numbers,” says Larisa Hockey, Chair of Long Covid Support Aotearoa.

“People with Long Covid and other disabling conditions want to work, but many can’t sustain employment because of their health. They deserve support and policies backed by evidence, not suspicion or sweeping assumptions,” Hockey said.

Those receiving Jobseeker Support on health and disability grounds must provide medical certification about how their condition affects their ability to work. Their continuing eligibility is also regularly reviewed.

Dr Buzz Burrell, a GP leader who has worked as an MSD-designated doctor, told the media in 2025 that the “overwhelming majority” of health-related beneficiaries were genuine. “By far the majority of people want to be working,” he said.

Covid infections continue to cause long-term health problems in a subset of New Zealanders, with experts warning that Long Covid can potentially increase the risk of death and trigger “silent” damage to cells and organs.

The 2024/25 New Zealand Health Survey estimated that around 185,000 adults reported currently experiencing Long Covid symptoms when surveyed. Women and Māori were more likely to report ever having Long Covid symptoms.

But Long Covid remains largely absent from the political debate, despite its prevalence and impact on people’s ability to work. New Zealand still lacks proper national monitoring of Long Covid’s scale, resulting work impacts or support needs. 

The pandemic may be one factor behind the recent five-year rise in health-related benefit numbers. MSD warned in 2022 that the pandemic’s psychosocial impacts could lead to further growth in benefit numbers, and other countries have reported similar increases.

Long Covid is one possible contributor, alongside other health, economic and demographic factors, but its contribution has not been quantified. Without better data, politicians risk making major policy decisions based on assumptions rather than evidence.

When announcing ACT’s disability cuts policy, Seymour questioned whether the rise in people unable to work reflected a genuine increase in sickness. The Mental Health Foundation said health statistics showed there has been a substantial rise in mental distress.

LCSA is calling on all political parties to protect access to essential health and disability financial support, collect comprehensive data on Long Covid and other post-infectious conditions such as ME/CFS, and ensure welfare policies are based on robust evidence.

“New Zealand needs to understand why more people are unable to work, including how Long Covid contributes,” Hockey said.

“Cutting support before properly investigating the causes risks deepening hardship without fixing the underlying problem.”

ENDS