ACC Delivers Best Rehab Results in Over a Decade

ACC Minister Scott Simpson says the early results from the organisation’s Turnaround Plan signal a decisive shift toward faster recovery outcomes and a renewed focus on performance.

New Zealand’s Accident Compensation Corporation (ACC) is recording its strongest rehabilitation performance in more than ten years, with new data showing fewer people are remaining long-term on the scheme and more injured Kiwis returning to work sooner.

ACC Minister Scott Simpson says the early results from the organisation’s Turnaround Plan signal a decisive shift toward faster recovery outcomes and a renewed focus on performance.

“For too long, too many New Zealanders were languishing on ACC without the timely rehabilitation support they need. These are teachers, nurses, tradies, farmers and small business owners who want to get back to work and regain their independence,” Mr Simpson says.

Long-Term Claims Growth Slows to 10-Year Low

ACC’s first public monthly turnaround report reveals that growth in the Long-Term Claims Pool has dropped to 1.8 percent — the first time since 2014 that annual growth has fallen below 2 percent.

The Long-Term Claims Pool represents people who have been receiving support for more than 12 months. Slowing growth in this category is widely regarded as a key indicator of rehabilitation system performance.

When National left office in 2017, growth in the long-term claims pool was 3 percent and trending downward. In subsequent years, that growth climbed to more than 14 percent, equating to nearly 200 additional people each month spending over a year on the scheme.

“That level of growth was unacceptable. It signalled a system drifting away from rehabilitation and toward long-term dependency,” Mr Simpson says.

The new 1.8 percent growth rate suggests a significant structural correction is underway.

Return-to-Work Rates Climb Across All Timeframes

The January Turnaround Plan report shows measurable improvements in return-to-work rates across short-, medium-, and long-term recovery timeframes.

More claimants are now:

• Returning to employment within the first three months of injury

• Transitioning off weekly compensation sooner

• Achieving sustainable independence rather than cycling back onto support

Faster rehabilitation not only improves individual wellbeing but reduces financial strain on households and communities.

“Every week shaved off recovery time matters,” Mr Simpson says. “It means families regain income stability sooner, businesses retain skilled staff, and communities benefit from people resuming active participation.”

Turnaround Plan: Back to Basics with Measurable Targets

The performance lift follows a formal Letter of Expectations issued to ACC, directing the organisation to restore rehabilitation as its core purpose.

In response, ACC’s Board developed a Turnaround Plan built around three priorities:

1. Putting clients first with care that supports lasting recovery

2. Improving return-to-work outcomes and reducing long-term dependency

3. Resetting ACC’s operational discipline and strengthening performance accountability

A key innovation is the introduction of public-facing monthly reporting — a transparency measure designed to track progress in real time rather than relying solely on annual reporting cycles.

“This is about accountability and measurable delivery,” Mr Simpson says. “We want New Zealanders to see clear evidence that the scheme is performing.”

Why Rehabilitation Performance Matters

ACC supports hundreds of thousands of claims each year. Even small percentage shifts in long-term claim growth can translate into thousands of people either remaining dependent on weekly compensation or returning to work.

Improved rehabilitation outcomes:

• Reduce long-term fiscal pressure on the scheme

• Help stabilise levy costs over time

• Strengthen workforce participation

• Improve physical and mental recovery outcomes

Policy analysts note that long-term claims growth is one of the most sensitive indicators of whether a no-fault insurance scheme is functioning effectively.

Early Gains — But More Work Ahead

While describing the results as encouraging, the Minister cautioned that sustained performance improvement will require continued operational focus.

“There’s plenty more work ahead. But these early indicators show the system is moving in the right direction.”

The Government says the turnaround reflects its broader focus on restoring core public service delivery and improving measurable outcomes.

“For injured New Zealanders, this is about getting the support they expect when they need it most — and getting back to the lives they value,” Mr Simpson says.