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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