Plenty On The Line While Disability Support Funding Is Decided In Private

If you want to know what someone values, follow the money.

We’re told disability support spending is out of control - Individualised Funding, equipment support and more areas of funding pressure are yet to be uncovered.

What we need to remember is that for every story of cost cutting, a disabled person risks losing the specialised care they need or the place they live.

Considering the low expectations thanks to Whaikaha’s financial strife, Budget 2024 held a remarkable level of investment of $1.1 billion over four years for disability support. $80 million of that would be advanced to Whaikaha to help them meet support needs up to 30 June.

So, how will the remaining $1.02 billion be spent? We’re told that spending in residential support is out of control. Why? Simply, it’s down to the increased complexity of disabled people seeking and being considered eligible for this level of support.

Secondly, and following multiple reviews of its funding model without any action, we know the base rate for residential support means it’s simply not viable for many providers. This leads to a perverse incentive to take advantage of the individual rates for higher needs clients. Is data available to demonstrate the increase in complexity? Apparently not.

There are three initiatives in play to work through the where the budget will go.

Whaikaha set up a CEO’s Forum of 17 sector leaders to get advice on controlling overspend areas, with this term’s second Minister of Disability Issues quickly going on record that Whaikaha must live within its means.

Minister Upston then set up an Independent Review, to be completed over six weeks, which again is focussed on better managing cost pressures.

Finally, Whaikaha commissioned EY (Earnst and Young to us oldies!) to develop a forecasting model to get a more accurate picture of future demand and its impact on support costs. One wonders why this wasn’t an evident risk when the Ministry was first established, and this critical work undertaken nearly two years ago?

The CEO’s Forum has met twice on what’s apparently an urgent piece of work, with neither focussed on where Whaikaha’s cost pressures are, or how they can be addressed. This is leading to increased tension within the Forum membership, who’re questioning what they’re there for, if not to discuss the number one issue in disability support?

The fear is that significant and hard-hitting changes are in store for the sector, and that the Ministry will point to the Forum saying that providers were consulted is a big concern to many Forum members, who rightly point out they’re not there to tick a consultation box.

Whaikaha confirmed with me just the other day they have no plan – no budget – on how the remaining $1.02 billion will be spent. Their own workplan for the year is likely on hold until the Independent Review recommendations are released, which will form the plan for the next year or two. Hence, we wait.

Given the Independent Review’s incredibly tight timeframe and limited consultation with the CEO’s forum (two dates were set and cancelled for these meetings with no future date set), there are concerns about the nature of the recommendations.

The Minister has explained that there will be two tranches of recommendations – urgent ones, to implemented immediately without sector consultation. The second tranche will involve a re-set of government policies, which we’re told will have consultation.

Signals have been sent that the Independent Review recommendations are likely to involve deep cuts that will be uncomfortable for many. The threshold for access to funded support is likely to lift, hopefully not so far as to prompt busloads of disabled people heading off to their local hospital Emergency Department, but close to it.

The alarm bells are starting to ring, for disabled people and their families, and the providers who care for them.

The next few weeks are likely to be tough for the disability support sector, as the various recommendations roll out and we can assess the impact on our clients, and the viability of the support services we deliver. All of this is in the context of the Health and Disability Commissioner report, work on complaints processes, the impact on a significant number of providers not being paid for services delivered in a timely manner, Pay Equity rumbling on and more.

Frustratingly, all we can do now is wait while disability support’s future, and the future of the $1.02 billion that has potential to do so much good, is decided behind closed doors.

Peter Reynolds, New Zealand Disability Support Network CEO

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