Government boosts funding for aged care

District health boards will receive an extra $18 million for residential care for the elderly.

"Today's injection of a further $18 million will help address immediate costs pressures on residential services," said Associate Health Minister Ruth Dyson.

The Government had increased its funding of aged-care facilities by $52 million since 2001 but more work needed to be done, she said.

"A number of issues are outstanding, including the impact of the Holidays Act and the effect of the recent nurses' settlement on nurses' and care workers' remuneration outside district health boards."

The Health Ministry had set up a working party to develop long-term solutions, Ms Dyson said. It will report back to the Government early in the New Year.

Parliament's health select committee expressed concern this month about "chronic under-funding" of the aged-care sector, which it said affected the ability of employers to pay caregivers adequately and provide training.

Act's health spokeswoman, Heather Roy, said $18 million was just a drop in the bucket.

"I had a resthome owner ring me to say they have just done their figures as a result of the announcement and for them it will result in a $2.70 to a $3.90 increase for each of their beds per year," she said.

"But to break even they actually need $16 per bed."

- NZPA, staff reporter