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flag Labour opposes welfare clawback bill, seeks exemptions for vulnerable groups amid legal and ethical concerns.

flag Labour has reversed its stance on legislation allowing the Ministry of Social Development to reclaim welfare payments from people who later receive ACC lump sums, citing concerns that it would unfairly penalize vulnerable individuals who relied on benefits while awaiting claims. flag The party now demands exemptions for abuse in care survivors and those in financial hardship, warning the policy could worsen trauma and criminalize those in need. flag Although the bill passed second reading with coalition support, Labour insists on amendments before continuing its backing. flag The High Court previously ruled the existing clawback practice illegal, and critics argue the new law risks harming already disadvantaged groups.

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