A New Zealand woman battling a chronic illness has seen her benefit slashed to $55 a week after spending more than 13 weeks in hospital, sparking concerns about the adequacy of support for long-term patients. The case highlights an automatic reduction in benefits triggered by extended hospital stays, a policy advocates say disproportionately impacts those already struggling with their health and ability to navigate bureaucratic processes.
Benefits can be cut during long hospital stays
Rhiannon Purves, 34, has been bedridden in a Wellington Hospital for months, suffering from Myalgic encephalomyelitis/chronic fatigue syndrome (ME/CFS). Unable to walk or speak easily, her days are marked by chronic pain and exhaustion. She recently learned her supported living payment of $480 would be reduced to $55 a week, a change she was unaware of until receiving an email notification.
According to Gagau Annandale-Stone, Regional Commissioner for Social Development, the Ministry of Social Development reduces benefits to a “hospital rate” of $55.35 a week after 13 weeks of hospitalization, unless the individual is a veteran or has a partner and child. This rate is “intended to cover the costs of personal items,” with other health-related expenses the responsibility of the healthcare provider.
Purves attempted to appeal the decision, submitting documentation of her ongoing costs – including medications not covered by the hospital, appointments with specialists, and essential supplements – but received no response before the benefit cut took effect. She reports being unable to communicate by phone due to her illness, further complicating the process.
‘There needs to be a conversation first’
Beneficiary advocate Kay Brereton criticized the automated nature of the benefit reduction, arguing that a case manager should thoroughly assess each individual’s circumstances before implementing such a significant change. “A computer can’t just be an expiry date,” she stated, emphasizing the need to consider factors like ongoing housing costs and other essential expenses.
Brereton explained that the system operates under the assumption that all needs are met within the hospital setting, which she disputes. She highlighted the additional costs patients face – podiatry, hygiene products, phone bills – that must be covered by the minimal $55 weekly allowance.
Annandale-Stone acknowledged that the Ministry of Social Development received Purves’ application for a higher rate of payment on February 14, 2025, but admitted a delayed response and a need to clarify what additional documentation was required.
ME Support general manager Vanessa Atkinson noted that more than 45,000 New Zealanders are affected by ME/CFS – a number rapidly increasing with the rise of Long Covid – and that support for these individuals within the public health system remains “very little.”
Frequently Asked Questions
What triggers the benefit reduction?
A person’s benefit is automatically reduced to $55.35 a week if they spend more than 13 weeks in hospital, unless they are a veteran or have a partner and child.
What is the stated purpose of the “hospital rate”?
The “hospital rate” is intended to cover the costs of personal items while a person is hospitalized, according to the Ministry of Social Development.
What concerns have been raised about the process?
Advocates argue the automatic reduction is insufficient to cover essential expenses and that the process lacks individualized assessment and accessible communication, particularly for those with disabilities.
If this pattern continues, it is likely that more individuals with chronic illnesses will face similar financial hardship while receiving necessary medical care. Further scrutiny of this policy and its impact on vulnerable populations may be warranted. What changes could be made to ensure a more equitable and supportive system for long-term patients?
