Govt Announces Major Reforms to Disability Support System

The review highlighted severe issues, including unsustainable spending practices and a lack of fairness and transparency in accessing support.

Immediate reforms are set to stabilize New Zealand's disability support system after an independent review revealed significant shortcomings in the Ministry of Disabled People – Whaikaha's (Whaikaha) ability to deliver services effectively since its establishment in 2022.

Disability Issues Minister Louise Upston emphasized the government's commitment to supporting disabled individuals, citing a record $1.1 billion funding boost for disability support services in this year's Budget. However, she acknowledged that urgent action is needed to address the problems identified in the review.

The review highlighted severe issues, including unsustainable spending practices and a lack of fairness and transparency in accessing support. It pointed to the previous government's "rushed" six-month setup of Whaikaha, which led to poor financial controls, inadequate expenditure monitoring, and a lack of public sector discipline.

The review warned of potential breaches of the $2.6 billion disability support budget this year unless immediate steps are taken. It also noted that the previous administration had left the Ministry ill-prepared to fulfill its commitments to the disability community.

Key issues include the lack of criteria for accessing flexible funding and inconsistent support across different regions, creating an "inequitable and unfair" system.

In response, the Cabinet has decided on several key actions:

Transition to MSD: The Ministry of Social Development (MSD) will assume responsibility for delivering disability support services by October 2024.

Upgrading Whaikaha: Whaikaha will be elevated from an MSD-hosted agency to a stand-alone government department. It will focus on strategic policy, monitoring service effectiveness, education, and advocacy for disabled people.

Taskforce Formation: A taskforce will oversee the implementation of the review's recommendations and manage the transition of disability support services to MSD.

Budget and Monitoring: Reinstating indicative budgets and monitoring for Needs Assessment and Service Coordination Organisations (NASCs) to ensure effective oversight.

Funding Stability: Residential care and service provider funding will remain at 2023/24 levels during a rapid pricing review.

Expansion Pause: The expansion of the Enabling Good Lives approach will be paused to ensure equitable access to support based on need rather than location.

Decisions on eligibility criteria for flexible funding will be made later this year following consultations with the disability community.

Upston underscored the importance of these changes, stating that moving disability support services to MSD is crucial for better management and resolving conflicts of interest within Whaikaha. "Our goal is to create a fair, sustainable, and high-quality disability support system that meets the needs of disabled people," she said.

Upston also expressed gratitude to Sir Maarten Wevers, Leanne Spice, and Reverend Murray Edridge for their contributions to the review.