A double-pronged mistake meant more more than 30,000 benefit payments were incorrectly suspended.
A review has found superannuitants were wrongly made to confirm their circumstances to get the Winter Energy Payment in legislation passed under urgency.
The high number of confirmations meant processing delays, and people’s benefits didn't continue when they should have.
The Ministry of Social Development's paid more than $2.5 million dollars in arrears, and is apologising to the thousands impacted.
Chief executive Debbie Power says people questioning it from April were told it was no mistake, and it wasn't raised with the Minister until August.
"The policy intent was never to impact these clients in this way, we got it wrong."
LISTEN ABOVE

David Seymour: ACT Party leader on the party's bid to scrap the Waitangi Tribunal if elected
03:26

Barry Soper: Newstalk ZB senior political correspondent on the report into the MSD payment errors
06:05

Oliver Peterson: Australian correspondent on the new reports revealing Australian cars are stolen for parts to send to Iran and Russia
03:35