Woefully Underfunded Disability Allowances Failing Intellectually Disabled New Zealanders

IHC is calling for the government to triple the Child Disability Allowance and double the Disability Allowance to improve the quality of life and longevity for intellectually disabled people.

IHC Director of Advocacy Tania Thomas says that the allowances have been drastically underfunded for many years, causing severe financial strain and poor health outcomes.

“The Disability Allowance, which is to cover the ongoing costs of a disability, is capped at a mere $78.60 per week. This amount is woefully inadequate to meet the additional needs of intellectually disabled people.

“Similarly, the Child Disability Allowance (CDA), a fortnightly payment of $59.23 per week to the main carer of a child or young person with a serious ongoing health condition or disability, falls well short of providing adequate support for families.

“Despite being non-means tested and potentially available to many families, the CDA fails to recognise the additional care and attention required by these caregivers.”

The inadequacy of these allowances is further exacerbated by the limited living allowance for intellectually disabled people in residential care, which is only $80.67 per week.

IHC’s report From Data to Dignity: Health and Wellbeing Indicators for New Zealanders with Intellectual Disability has revealed the stark reality of life for intellectually disabled adults and children and their families and whānau.

These individuals and their families face severe financial strain and poor health outcomes, underscoring the urgent need for increased support and funding.

• Most intellectually disabled people live on around $30,000 a year for their entire lives.
• Households with intellectually disabled children earn approximately $6,000 less per year than other households.
• For intellectually disabled individuals aged 55-64, the income gap is significant, with their household income more than $20,000 below the average for the general population.
• A staggering 74% of families with an intellectually disabled child have only one parent working, compared to 63% of families in the general population creating more financial hardship and limiting the ability of these families to provide for their needs.
• 21% of intellectually disabled adults and 24% of intellectually disabled children live in the most deprived areas in New Zealand, compared to 11% and 15% of the general population, respectively.
• Intellectually disabled females have a life expectancy of 66 years compared to 84 years for the general population and intellectually disabled males have a life expectancy of 65 years compared to 80 years.

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