Demand for the Whanganui service has increased by 15 per cent since August 2023.
“It doesn’t make sense to reduce funding and do the calculations back then, and not consider that we are now in a stronger economic cost of living crisis and demand is increasing,” Fage said.
“We’ve got more work to do and yet you’re expecting us to survive on this?“
The reduction in funding would take away opportunities for the service to provide financial literacy education to the community, or to be open for longer hours and see clients on one evening per fortnight.
Henderson said MSD was working to finalise new contracts with providers.
“After July 1 we will be able to confirm the providers we’ve funded, and for how much.
“People will also still be able to access MoneyTalks, a phone service available seven days a week, nationwide, which provides budgeting and financial advice to anyone who needs it.“
The funding available for Building Financial Capability core services from July 1, 2024, is $19.5 million per year, which is a reduction of $2.8m compared to this financial year.
Fage said the budget service would have to find other avenues to fundraise.
“We haven’t been here for 60 years just to close the doors and say ‘Oh we haven’t got enough money’.
“It makes me sad and worried.“
There were more and more people accessing the service to dip into their KiwiSaver hardship funds.
Fage said although people who were accessing their KiwiSaver hardship “definitely needed the money”, it did not sit right with her that they were diminishing their investments.
“I don’t feel it’s what we want to be doing, but we do it.”
One client Fage recently helped was paying off 14 buy now, pay later contracts.
“The buy now, pay later schemes are becoming more common - but it’s because of hardship.”
Fage said the financial future New Zealanders were facing was “bleak” and could be further exacerbated by more job losses as economic forecasters predicted another 26,000 people may find themselves unemployed.
Financial mentors provide free services focused on supporting people to get control of their money and explore all their financially relevant options.
For many of the clients Fage sees, there is no quick fix to remedy their financial situations.
“I’ve seen two elderly ladies whose husbands died and they’ve got no understanding of the financial role - their hubbies did everything.
“I walked alongside them for the last 12 months, going and finding out all their providers and setting up bank account payments.”
Finding other funding streams would be difficult and their team of staff were concerned about the long-term security of their jobs, she said.
Henderson said the funding levels would support about three fulltime staff positions to work with people in need.
Eva de Jong is a reporter for the Whanganui Chronicle covering health stories and general news. She began as a reporter in 2023.
