Government Fee Change Hits NZ’s Poorest Citizens – IHC New Zealand

People with intellectual disability are facing yet another financial blow following changes to the Protection of Personal and Property Rights Act that remove a government subsidy for court-mandated financial examinations.

From 3 October 2024, the Public Trust began charging $247.27 per hour to review property managers’ annual financial statements – a process that ensures a person’s money is being properly managed. Previously, those with less than $20,000 in assets were protected from these costs by a government subsidy. That protection has now been taken away.

“Removing the subsidy is effectively charging people for being poor and disabled. It’s not right,” said Tania Thomas, IHC Director of Advocacy. “These are not people with savings or assets – many live week to week.”

The new fee applies to the person under protection in many cases, an intellectually disabled person living on a benefit. Public Trust has confirmed that fees cannot be waived.

“These fees are being charged to people who often have nothing to spare,” said Tania. “They are some of the most financially vulnerable people in New Zealand – yet they’re now being asked to pay for a safeguard that exists to protect them. It’s deeply unfair.”

People with intellectual disability already experience some of the highest rates of hardship in the country:

• They are twice as likely to live in hardship before age 40, and three times as likely between 40 and 64, compared to others.
• Nearly half would not be able to pay an unavoidable bill within a month without borrowing.
• They are four times more likely to go without a proper meal, and three times more likely to cut back on fruit and vegetables because of cost.
• Many go cold in winter because they cannot afford heating, and almost half can’t afford a holiday.

IHC is urging the Government to reinstate the subsidy or introduce a hardship exemption so that people with intellectual disability are not left paying for a process that was designed to keep them safe.