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Recent changes to disability support services – 16 September 2024

September 2024

Below is the most up-to-date information on recent changes to Disability Support Services, provided by the Ministry of Social Development on 16 September 2024. Our Connections & Funding Service provides NASC services in Tairāwhiti, Taranaki, Whanganui, Hutt Valley and Otago and Southland.

The Government announced the following changes to the Disability Support System (DSS) following an Independent Review of DSS by an independent panel led by Sir Maarten Wevers.

What the review found

The Minister for Disability Issues, Hon Louise Upston, commissioned an Independent Review of the Disability Support System to strengthen its long-term sustainability.

As the Ministry of Disabled People – Whaikaha was facing cost pressures, the Minister wanted a full picture of the situation before considering any changes to the system.

The review made seven recommendations to improve the financial sustainability of the disability system, which have been accepted by Government and are being implemented by Whaikaha and the Taskforce.

The report highlighted six key findings:

  1. Delivery of DSS is inconsistent.
  2. The DSS 2024/25 appropriation will be breached if spending is not controlled.
  3. There is inadequate budgetary control and commercial rigour.
  4. The two areas of largest cost growth are flexible funding provisions and residential facilities-based care.
  5. The new departmental agency is not set up in a manner that enables it to manage effectively the nature and scale of its appropriation.
  6. Current policy settings and service design do not allow the Ministry to administer and deliver DSS effectively.

What’s happening currently

Recommendation 1 (Read more)

  • Indicative budgets for NASCs and fixed budgets for EGL sites and Equipment and Modification Service (EMS) providers have been reinstated.
  • Monitoring and reporting requirements for NASCs, EMS providers and EGL sites have been reinstated.

Recommendation 2 (Read more)

  • Residential support funding will be maintained at existing levels.

Recommendation 3 (Read more)

  • Providers will not receive any price increases in 2024/25.

Disability Support Services (DSS) will transfer from the Ministry of Disabled People – Whaikaha to the Ministry of Social Development (MSD) on 16 September 2024.

The national roll out of EGL sites will be paused.

A Taskforce has been set up within MSD to deliver the review’s recommendations.

Budgets

NASCs and EGL site budgets are greater than what was spent last year and, overall, there has been an increase in the level of funding for disability support for 2024/25.

$2.6b is available in 2024/25, as an additional $1.1b over five years was provided for Disability Support Services in Budget 2024.

What this means for NASCs and EGL sites

NASCs and EGL sites will need to work within the budgets they have been given for the 2024/25. They:

  • cannot spend more than their budget
  • may need to prioritise the services they fund, and their purchases from providers, to stay within their budget
  • will continue to review support packages regularly.

If a person’s residential support requirements change, the NASC or EGL site can agree a change in the rate paid to a provider, but this will need to be managed within their residential support budget.

In some cases, new rates for residential support and some high-cost community support allocations will need to be considered by a Review Panel, which has been established as part of recommendation 2.

What this means for disabled people

If you are a disabled person, family member, or carer of a disabled person, there is unlikely to be immediate change to the support you receive.

People will continue to get the funding, equipment, care, and the other disability support they are currently eligible for.

People do not need to go into MSD’s Work and Income offices for disability support services.

If people need additional support, or if their needs change, they should continue to talk to their NASC, EGL site or provider.

Residential support

The review recommended maintaining current funding levels for residential support to enable an urgent review of the contract and pricing models to be undertaken because while the number of people in residential support has remained constant costs have increased beyond inflation.

The review also found it was unclear how residential support costs were being monitored and controlled.

This means, NASCs will be managing within an indicative budget for supports and maintaining current funding levels while the review takes place. This will require careful funding decisions and ensuring those with the highest needs will have their needs met first.

Priority for entries to residential care are where the person:

  • is subject to a court order requiring care under the High and Complex framework (forensics)
  • is subject to an order under the Oranga Tamariki Act 2019
  • is exiting Mental Health care (including secure care), and there is no other appropriate option for the person to be discharged to
  • is exiting hospital care and there is no other appropriate option for the person to be discharged to and
  • has escalating needs with a medical or nursing component that can only be met through hospital-level care (usually in aged care).

The Operational Policy and Guidelines also set out priorities for residential transfers.

NASCs will work with disabled people and their families to understand and assess need, and the Ministry has a panel established that will provide assurance about residential support decisions to ensure disabled people with high needs continue to receive support.

DSS and NASCs are working closely and collaboratively, to support the implementation of NASC budgets, and prioritisation – in particular, where disabled people are in the process of transitioning into residential care or reviews of support are being undertaken currently. These are being managed by the relevant NASC with support from Whaikaha.

More information

Visit the Ministry of Disabled People – Whaikaha website for more information.

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