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Disabled people and their carers were appalled when allowances were restricted in March without warning. Background documents show the surprise announcement was part of the ministry’s plan.
Whaikaha - Ministry of Disabled People deliberately decided against advanced warning of funding changes out of concern about alast-minute spend-up, newly released documents show.
The ministry was criticised by disability groups and advocates in March after it abruptly announced limits on what disabled people could buy and who would get access to equipment.
Documents released under the Official Information Act show former Disability Issues Minister Penny Simmonds was told by officials in February that the ministry would need to give “fair notice” about the changes while also “moving quickly” because “an extended notice period increases the risk of increased expenditure prior to the changes being implemented”.
Another memo provided to Whaikaha’s leadership team the following month warned that family and disability groups would expect “significant advance engagement” before any changes to funding were made - noting that engagement was a core part of the strategic plan agreed to with carers.
The memo went on to say advanced notice was not possible for this announcement but the ministry could allow input for disability groups on more permanent changes being planned for disability support.
The briefing outlined a plan for when various groups would be notified about the changes. Carers NZ were initially going to be told about the funding restrictions on March 1 but the organisation was eventually told on March 15, three days before they were publicly announced.
Government departments including Te Whatu Ora and the Ministry of Social Development found out when the public did on March 18.
Many disabled people, families and advocates were shocked at the sudden changes. Most of them found out by reading the announcement on Whaikaha’s website or Facebook page.
Whaikaha CEO Paula Tesoriero apologised for her ministry's handling of the flexible funding changes in March. Photo / Ben Fraser
Simmonds was first notified in early December that demand and costs were growing for some disability support services, especially allowances which gave disabled people some flexibility around how their money was spent - known as flexible funding.
The documents show that Simmonds planned to meet with Finance Minister Nicola Willis to discuss Whaikaha’s cost pressures, but this meeting never took place. After the funding changes were announced, Willis said she knew the ministry was under financial pressure but was not aware of how dire it was.
A memo from Whaikaha’s finance team to its leadership on December 20 proposed limiting “sensitive expenditure”, giving the example of overseas travel or accommodation for disabled people’s carers.
“It will become increasingly difficult to justify such expenditure publicly in the new fiscally constrained environment and the new Government direction signalled,” the memo said.
Officials then developed plans to limit spending on respite care and prioritise equipment such as wheelchairs and home modifications for those who most needed them.
The briefing to the minister in February spelled out the impact of those proposals: Up to 34,000 people would be affected.
It identified the greatest beneficiaries of the flexible funding model: Families who relied on respite care, people with autism and their families, and Māori and Pacific people, whose engagement with support services had increased.
“As a result, we expect these measures would impact most on the families of those with the most complex needs, the autism community, and potentially Māori and Pasifika,” the minister was told.
However, there were also risks in doing nothing.
“Not taking action … risks a loss of confidence in the flexible funding system, such that even greater restrictions on flexibility are required.
“The impact of this risk would be significant, and the probability increases the longer Whaikaha takes to introduce any mitigations.”
Spending on flexible funding had doubled from $230 million in 2019/20 to $520m in 2023/24.
Some of the funding changes made in March were reversed after the outcry from families and carers, while others remain in place. The Government also topped up the ministry’s funding at the time.
Minutes from the ministry’s meetings showed the temporary “pause” on flexible funding would last up to six months.
Isaac Davison is an Auckland-based reporter who covers health issues. He joined the Herald in 2008 and has previously covered the environment, politics, and social issues.
