The New Zealand Minister for Social Development and Employment, Louise Upston, has declined to apologise following the rejection of more than 8,000 Special Needs Grant applications for food assistance over the past six years due to a categorisation error. The Ministry of Social Development (MSD) recorded these applications as requesting a "non-essential" item, which prompted the refusals.

Speaking to Katie Bradford on the program Ryan Bridge TODAY, Upston acknowledged that food is "clearly an essential item" but maintained that the reason cited for the refusals was incorrectly entered in the MSD’s system. She emphasized that the error was administrative and did not alter the decisions to decline the grants themselves. “No, look, I think there’s two things here… first food clearly is an essential item,” Upston said. “Hardship grants will be declined for a range of reasons. What’s happened here is the reason has been incorrectly recorded in this system. It doesn’t change the decision that a hardship grant was declined.”

In contrast, Blair McKenzie, MSD’s Canterbury regional commissioner, offered an apology to those affected by the mishandling of the food grant applications. McKenzie described the issue as a record-keeping fault that caused confusion and distress among applicants. “We’re really, really clear that food grants should not be coded as non-essential,” he said. “I do want to sit here today and apologise to anyone who finds themselves in that situation, it’s not a nice situation to be in.”

According to MSD, the 8,000 declined applications represent approximately 0.1 percent of the total grants issued over the last six years. Food-related requests account for 96 percent of all applications made under the Special Needs Grant scheme. MSD utilises about 50 different coding categories to assess entitlements, and the misclassification affected only a small subset of applicants.

Upston reiterated that MSD distributes roughly 1.3 million payments weekly to New Zealanders. She said the ministry has corrected the recording issue and reiterated the importance of food as an essential grant item. “In this instance they got it wrong, Blair’s apologised for that and we have made it absolutely clear that food is an essential item,” she stated.

The revelation has sparked concerns about the administrative processes within MSD and the impact on individuals seeking urgent support for food during periods of hardship.