Disability Support Services Cost Pressures – Supporting Disabled People

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Disability Support Services Cost Pressures – Supporting Disabled People

Ministry of Social Development – Vote Disability Support Services (DSS).

The Government is investing $1 billion in new funding over the forecast period to support DSS demand and inflationary pressures. This funding of $250 million each year (and in outyears) is in addition to the Government’s more than $2.5 billion per annum investment in disability support services.

It will enable DSS to continue to deliver critical disability support services for disabled people by: 

• contributing towards the increasing costs of providing these services
• enabling more disabled people to access its services.

DSS will continue to progress the recommendations in the 2024 Independent Review to better manage DSS cost pressures and create a fair, sustainable, and transparent disability support system.

It includes $240 million ($60 million each year ongoing) additional funding for residential care over the forecast period. This funding will also enable DSS to implement the new pricing model for residential care in community group homes and develop new contracts with providers.

It also includes funding for:

• Community care – supporting disabled people to live in the community including accommodation, food and other general costs.
• Equipment and modification services – helping disabled people navigate their daily lives, for example: assistive communication technology, equipment such as wheelchairs, home and vehicle modifications, and hearing and vision services. 

Vote Disability Support Services Opex: Cost Pressures – Supporting Disabled People

What will the cost pressures funding be used for?

• This initiative provides funding for the continued delivery of support to disabled people and their families. The funding will address increases in volumes as well as inflationary pressures for disability support services.
• It will help meet the increasing costs of disability support services, and to support people to access those services.
• The Budget provides an increase of $60 million per year for residential care. 

How many people are supported by DSS?

• DSS commissions around 500 providers to supply a range of disability supports and services. 
• DSS provides funding to support more than 52,000 disabled people to access a range of disability services daily.
• DSS also funds a range of other services and supports including equipment, vehicle and housing modifications, and hearing and vision services for more than 100,000 people each year.

What services and supports will this fund?

The additional funding ensures the following ongoing support for disabled people:

• Community Residential care – supporting disabled people to have safe and satisfying lives with access to 24/7 support
• Home and Community Support Services – support with household management, personal care, respite care, and other similar supports for people living in their own home.
• Environmental Support Services – support disabled people to navigate their everyday lives, for example: assistive communication technology, wheelchairs, home and vehicle modifications, and hearing and vision services.
• High and Complex Framework – a forensic framework supporting people with an intellectual disability who have offended and are in secure or supervised care.
• Needs Assessment, Disability Information Advisory Services, and supports which connect disabled people to the services that they need.

Should DSS providers expect price uplifts this year?

• Decisions on how the new funding is spent will be made over the coming months.
• DSS will keep our providers and the disability community updated as we work through how any price uplifts will be applied.

What actions is DSS taking to manage the cost and growth of disability support services?

DSS has taken several actions to manage the cost and growth of disability support services, including:

• Completing a rapid review of residential contracts and developing a pricing model for residential care. This new model will provide simpler, credible pricing based on the current costs of care and enable DSS to sustainably forecast costs and needs into the future.
• Providing greater consistency across NASCs and Enabling Good Lives sites and ensuring they are prioritising those in highest need.
• Taking action to forecast expenditure and implement more fiscal discipline.
• Developing a monitoring function to support continuous quality improvements.
• Further urgent work underway following recent community consultation across the country will review needs assessment and allocations settings as well as flexible funding criteria and guidelines, which will further enable better management of costs.
• DSS is committed to continuing to make progress to stabilise and strengthen the disability support system so that it is fair, equitable, transparent, and sustainable.

High and Complex Framework Funding Pressure

The High and Complex Framework Funding Pressures initiatives provides $10 million over two years. The High and Complex Framework supports people with an intellectual disability who have committed imprisonable offences. This funding will support the continued safe operation of these facilities, and for critical workforce training initiatives and essential repairs and maintenance upgrades

Vote Disability Support Services Opex: High and Complex Framework Funding Pressures

What will the $10 million funding for the High and Complex Framework be used for?

• The High and Complex Framework (the Framework) supports people under the Intellectual Disability (Compulsory Care and Rehabilitation) Act (IDCCR Act).
• It provides a diversionary pathway for offenders with intellectual disabilities who are engaged with the criminal justice system towards more appropriate services with a strong rehabilitative focus.
• The Budget bid seeks to address some short-term critical needs while longer term investment planning is underway. It provides for critical workforce training initiatives and essential infrastructure, including repairs and maintenance upgrades.