April 3, 2026

Mileage rates for care workers rise as fuel costs soar

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Photo source: Local Government New Zealand

The government has moved to expand state support, announcing a 30% increase in mileage rates for home and community support workers as fuel costs continue to climb.

From today, fuel subsidies for support workers travelling between clients will rise from 63.5 cents to 82.5 cents per kilometre, marking an increase in taxpayer-funded assistance. 

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Photo source: Unsplash

Health Minister Simeon Brown said the increase would remain in place for 12 months, or until the price of 91 octane petrol falls below $3 per litre for four consecutive weeks – mirroring the timeframe set under the government’s broader fuel cost relief package.

The change means home and community support workers will receive an extra $19.05 per 100km of travel.

The decision follows calls from some workers in the sector, who argued that rising fuel costs were making it increasingly difficult to carry out their duties.

Brown described the new mileage rates as “timely, targeted, and temporary support to address the immediate cost pressures facing frontline workers and the services they deliver.”

“We can’t control global fuel prices, but we can make sure workers delivering essential care are supported to keep services running.”

Brown said that temporarily raising the mileage rate for these workers acknowledges the crucial role they play in New Zealand’s health system and provides practical support to ensure they can continue delivering essential, high-quality care to those who rely on it most.

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