• MSD doesn't say if it's checking Lake Alice torture survivors' benefit decisions after compensation botch up
• The agency wrongly denied accommodation supplement to a Lake Alice survivor, but the decision was overturned
• Former human rights commissioner criticises MSD's stance.

Officials are not saying if they've checked to make sure survivors of torture at the notorious Lake Alice child and adolescent unit haven't wrongly had benefits cut because of compensation they've received.

RNZ reported last month that Paul Zentveld, who has a King's Service Medal for services to survivors of abuse in care, was unable to pay his rent and was living in his house bus in a public car park after his accommodation supplement was cancelled when it shouldn't have been.

Zentveld is one of more than 100 Lake Alice survivors who opted for a $150,000 compensation payment for torture suffered during the 1970s at the unit, overseen by Dr Selwyn Leeks. Others have negotiated settlements through arbitration.

Ministry of Social Development rules say compensation for Lake Alice survivors or assets they've bought with compensation money should not be considered when they're assessed for benefit entitlements.

Yet a boat worth about $23,000 Zentveld bought with his money was wrongly ruled to mean he was ineligible for receiving accommodation supplement payments, a decision reversed when he successfully appealed to the MSD's benefits review committee.

MSD doesn't say if it has reviewed other decisions

Zentveld is concerned other Lake Alice survivors in his situation would also be affected.

RNZ has spoken with another survivor who was also denied their accommodation supplement due to an asset they'd bought using their compensation money, only for the decision to be reversed after Zentveld's story was reported.

MSD's group manager for client service delivery Graham Allpress said he couldn't comment on individual cases without a privacy waiver, but said it regularly reviewed decisions.

"If we get something wrong, we want to make it right as quickly as possible.

"Many of our staff have been working with survivors of abuse for a long time. They work hard to provide people with the support they're entitled to."

RNZ asked if MSD would check with all Lake Alice survivors who had received compensation to make sure their benefit entitlements weren't wrongly affected.

Allpress said MSD had "specific operational guidance which applies to Lake Alice survivors and their compensation payments".

"We also provide more detailed guidance to MSD staff about how to support survivors who come to us for assistance. This includes both survivors of abuse in general, and Lake Alice survivors specifically.

"We've sent updates to every MSD staff member nationwide about our work on historic claims, including Lake Alice compensation payments and how they interact with other types of MSD assistance."

MSD historic claims staff received an overview of the Royal Commission into abuse in state and faith care, and updates on progress against its redress implementation plan.

Allpress referred RNZ to its guidance for assessing Lake Alice survivors who had received compensation, which is published online.

The section dealing with survivors' "cash asset levels" doesn't specifically say assets are excluded from calculations when benefits are assessed, saying: "Note for this exemption, cash means physical cash and money in the bank (including savings and term deposit accounts). It does not include anything purchased with the payment, such as shares."

RNZ sought further clarification.

Allpress said this was the current guidance for staff.

"As previously advised, decisions of the benefits review committee only apply to a client's individual case. They do not set a precedent. The [committee] decision is being considered as part of ongoing work around redress payments and the welfare system," he said.

"We encourage anyone has concerns about decisions we have made to contact us. They can challenge it and it can be reviewed."

No apology amid reversal

Zentveld has since received a letter saying his accommodation supplement will be restored and arrears paid. It did not include an apology.

He was concerned that MSD did not say if it would check to make sure other survivors weren't affected as he was, and said decisions about their entitlements should be reviewed to ensure they complied with the rules exempting Lake Alice compensation money and purchases from that.

"Why should they have to individually fight it? This is what the Royal Commission is worried about."

Zentveld said there seemed to be a lack of accountability.

Former chief human rights commissioner David Rutherford, who has supported Zentveld's fight for recognition for abuse survivors for years, including to the United Nations Committee against Torture, was also concerned, saying MSD should check to make sure others weren't affected.

"The social agencies are behaving as if they just want to be left alone to get on with business as usual."

The latest Lake Alice compensation payments are part of a government compensation package that followed an apology from Prime Minister Christopher Luxon in late 2024 for abuse in state and faith-based care, and promises from government departments to do better.