The 1 April minimum wage increase should mean more money in the pockets of the lowest paid workers, who like everyone, are coping with severe cost of living increases.

Unfortunately, it will also pile more financial pressure on Disability Support Providers.

Historically, the government has had to increase disability providers’ funding when the minimum wage increases. That’s because this sector is wholly reliant on government, who provide the funding to operate, as well as setting wage rates for support workers, some of whom are paid at the minimum wage rate.

So when wages go up but funding stays the same, that creates an alarming problem. The difference has to come from somewhere, whether that’s deferring maintenance and training, going into debt or not paying the increased rate – which is entirely illegal.

No employer begrudges a wage increase for their workers, but to make ends meet, many will have to consider steps like reducing the number of people they employ or the hours they operate, if they haven’t already.

This situation affects all disability support providers, and in turn the people they support and their families. Many in the support sector feel like the rug has been pulled out from under them.

Our sector has been underfunded for too long, and this situation is yet another step backwards when we were hoping for progress. Let’s not forget disability support providers are working through four separate Pay Equity claims, all of which suck up resource with none delivering increased pay to disability support workers so far.

Disability workers perform mentally and physically taxing jobs, doing their utmost to preserve the health, wellbeing and dignity of the people and families they support. It’s an Indictment on our broken system that some are forced to work for the minimum wage in the first place – that's what the Pay Equity claims are meant to address, whenever they are settled.

Times are tough for everyone, but when you’re operating a disability support organisation on what’s effectively a fixed income, your job just got a whole lot harder.

What’s the solution? The government must to listen to our sector, and deliver additional funding to cover the increased minimum wage, as they have in previous years. Broader funding issues remain, but this immediate situation must be resolved so this pay rise doesn’t put pressure on providers when they can least afford it.

– Peter Reynolds, NZDSN CEO

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