Source: PSA
Time to raise mileage allowance for first time in four years
The Government’s decision to increase income support for low paid workers will not go far enough for 23,000 home support workers hit hardest by sharply rising petrol prices, and that a faster, simpler fix remains available right now.
Today’s announcement on increases to income support for working families fall well short of what home support workers need given many are filling up their own cars at least twice a week and many do not have dependent children.
“This is a really disappointing decision and completely ignores the financial pressure on these essential workers,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi. “These workers have already had their pay equity claim cancelled by this government.
“Nicola Willis promised to help workers ‘acutely impacted’, but she has ignored home support workers. They are low paid, predominantly female workers who provide critical care to elderly and disabled New Zealanders every day. They are the only publicly funded workers required to use their own vehicles in this way. Rising petrol prices hit them directly in the pocket with every shift.
“If the Government is serious about protecting working people from this fuel crisis, it needs to do better and it still can. The Government has a fast, ready fix available by raising the mileage allowance.”
The Home and Community Support (Payment for Travel Between Clients) Settlement Act 2016 requires Health NZ Te Whatu Ora to pay home support workers a mileage rate. The allowance was last adjusted four years ago and is due for review (see explainer below).
“The Health Minister could direct that rate to be lifted immediately, no complicated fiddling with the tax and transfer system, no delay, just fast, real help for the people who need it most.”
Palmerston North home support worker Susan Miers is very disappointed. “It’s not very much really – it’s not going to make a difference to us,” In a typical day, Susan drives between clients across the city and the wider Manawatū region.
“I’m paying $40, $50 more a week than I was just a couple of weeks ago. It’s coming out of my food budget, because it’s the only thing I can change. I’ve already had to borrow money off of people to make things work.”
Fleur Fitzsimons: “The Government has ignored these workers in their time of need, rubbing more salt into their wounds. It’s disgraceful.
“The PSA will continue to fight for workers doing essential mahi in this crisis, workers who have no choice, but to drive to the people they care for every day. They deserve help now more than ever.”
Explainer – In-Between Travel Allowance
What is it? The In-Between Travel (IBT) allowance compensates home and community support workers for the time and vehicle costs of travelling between clients. It is governed by the Home and Community Support (Payment for Travel Between Clients) Settlement Act 2016.
Who does it cover? Around 23,000 home and community support workers who visit the elderly, disabled and injured in their homes, funded by Health NZ, MSD or ACC.
How does it work?
– Workers are paid a flat travel time payment (at their ordinary wage rate) for all trips between clients up to 15km of $2.35.
– It is meant to be a contribution to both maintenance and petrol costs.
– For trips over 15km (“exceptional travel”), workers are paid actual time and distance for that leg based on Google Maps
– Travel to the first client of the day and from the last client is not covered unless it exceeds 15km.
The rate and the problem: The mileage rate is currently 63.5 cents per kilometre – unchanged since March 2022. There have been only two increases in the rate’s entire history (from 50c to 58.5c in August 2020, then to 63.5c in March 2022). The current IRD mileage rate is $1.17 per kilometre (petrol vehicles). Workers are being reimbursed at less than two-thirds of the IRD rate, and with the fuel price spike triggered by the Iran, they are now being reimbursed at well under half their actual costs.
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.
