The Social Security (Modernisation) Amendment Bill, which enables a broader use of automated decision-making to modernise New Zealand’s welfare system, has passed its third reading in Parliament.
The Bill implements a change announced as part of Budget 2025 and does not impact eligibility settings for welfare assistance, said Social Development and Employment Minister, Louise Upston.
Ms Upston said the Bill is about making sure the welfare system delivers support to New Zealanders efficiently, consistently, and sustainably – without undue drain on resources.
“Every year, the Ministry of Social Development (MSD) makes millions of decisions – many of them straightforward, but the legislation has not kept up with how services are delivered today,” she said.
“While MSD currently uses automated processes where they can, there is still unnecessary manual processing, duplication, and delays for clients.”
The Minister said the Bill introduces a set of practical, targeted changes to modernise how the system operates, improving the accuracy of the information MSD holds about people to make sure they get what they are entitled to, while ensuring the system remains fair and financially sustainable.
“Automated decision-making will be used where decisions are straightforward and do not require discretion. The system will not replace human judgement where it is appropriate, and in many cases will make it easier for people to confirm their circumstances.”
“This is about delegating straight-forward decision-making to an automated process, to free up time for case managers to engage better with clients so they can access assistance and move from welfare to work.”
The Bill also strengthens existing safeguards for the use of automated decision-making, including legislative requirements to manage bias, ensure transparency and maintain appropriate human oversight.
“New Zealanders can have confidence that decisions will remain fair, accountable, and open to challenge.”
“These changes will not only improve efficiency, but also improve consistency and clarity, help reduce errors and avoid unnecessary debt for clients,” the Minister said.
