Key points
- Disability support services will come under the Ministry of Social Development, with Whaikaha the Ministry of Disabled People to focus on advocacy and policy.
- Disability Issues Minister Louise Upston announced the changes today, following an independent review into the fledgling ministry.
- Labour's acting disability issues spokesperson Carmel Sepuloni hit out at the changes.
Responsibility for disability support services will be taken off Whaikaha the Ministry of Disabled People by October this year, leaving it to focus on advocacy and policy advice, while the Ministry itself will be upgraded to a stand-alone government department.
Disability support services will come under the Ministry of Social Development (MSD) instead.
Disability Issues Minister Louise Upston announced the changes today, following an independent review into the fledgling ministry, saying the review found the delivery of disability support services was in a "dire state" with "unsustainable spending" and a lack of fairness and transparency around what support disabled people can access.
It currently funds services for around 50,000 disabled New Zealanders and equipment modification for 100,000.
Labour's acting disability issues spokesperson Carmel Sepuloni said some of the changes were "nothing short of shameful".
“The review found much of the problem stems from the previous government’s ‘rushed’ six-month establishment of the Ministry of Disabled People – Whaikaha," Upston said.
“The Ministry’s financial controls were ‘poor’, its monitoring of expenditure ‘inadequate’, and it lacked the public sector disciplines and operational practices seen in other government agencies."
She said numerous risks identified during the Ministry’s planning, including ongoing budget overruns, were not adequately addressed, and a breach of the $2.6 billion Budget appropriation for disability support was likely this year unless the Government acted quickly.
“The previous government left the Ministry ill-prepared from day one to deliver on promises that were made to the disability community.
“The review also found a lack of criteria for access to flexible funding and guidelines for its use was contributing to increasing costs and the ‘inequitable and unfair’ postcode lottery that exists for disabled people in this country.
“Rather than proceed with phase two of the review, we have accepted its advice to prioritise immediate action to stabilise the disability support system.”
That had prompted the changes announced, she said.
Whaikaha would be "upgraded" from an agency hosted by MSD to a stand-alone government department with responsibility for leading work to improve the lives of disabled people through strategic policy advice, monitoring the effectiveness of services, education, and advocating for positive change.
A taskforce would lead implementation of the review's recommendations and help facilitate the transfer of disability support services to MSD.
Meanwhile, indicative budgets and monitoring of Needs Assessment and Service Coordination organisations would be reinstated, and funding for residential care and service providers would be maintained at 2023/24 levels while a rapid review of pricing was conducted.
The Government would also pause expanding the Enabling Good Lives approach to "make sure access to support is fair and based on need, not location".
Decisions about how to proceed with the recommendations on eligibility criteria for flexible funding would be made later in the year after consulting the disability community, Upston said.
“Moving disability support services to MSD is significant but necessary. MSD has the controls and capability already in place to better manage this funding.
“This will also solve the conflict of the Ministry of Disabled People – Whaikaha having both advocacy and service provision roles, making it a representative and powerful voice in government for disabled New Zealanders.
“Our Government is determined to build a fair, sustainable, high-quality disability support system that delivers better outcomes for disabled people based on their needs. We must do better."
Whaikaha Ministry of Disabled People Paula Tesoriero said the Ministry had a challenging two years and had a "huge task" to turn around "decades of issues".
"I didn't get as far as I wanted, but I am proud of what we achieved.
"The opportunity now is for disability support services to have the backing of a larger, more established organisation."
She said it was important there was a "solid sustainable system" that users could have confidence in.
"I welcome the announcement to establish a powered-up, stand-alone agency, where we have an opportunity to really drive change for the more than one million disabled people in New Zealand."
Upston's announcement follows her appointment as Disability Issues Minister, which she took over from Penny Simmonds when the Prime Minister sacked Simmonds from the role.
That followed a botched announcement around funding for carers, where Simmonds revealed the Ministry was within "days" of running out of funding, and claimed carers had been taking advantage of a "broad" funding criteria to use public money "for massages, overseas travel, pedicures, haircuts" for themselves.
The comments were met with outrage and hurt from the carer community.
Upon Simmonds' sacking from the portfolio - in tandem with Melissa Lee from the broadcasting portfolio - Luxon said the roles required senior, experienced ministers.
'Nothing short of shameful' - Labour
Labour's acting disability spokesperson Carmel Sepuloni said the changes meant the Government would leave the Disability Ministry with "minimal staff and will remove financial control".
"Support services worth $2 billion are also being taken from Whaikaha."
“It’s beyond disgraceful how this Government is treating our disability communities."
Sepuloni said halting the Enabling Good Lives programme was also "cruel", saying it was a programme disabled people had been "greatly worried and vocal about being tampered with".
“This programme gives choice and control to disabled people to lead better, meaningful, and dignified lives. To halt the rollout in its tracks, is nothing short of shameful.
“Ironically, it was a National-led Government that started the programme. Labour honoured this commitment and made record investment into it.
“Given the Government is unable to reveal the savings of their devastating move to restrict disability funding in March, any claims of savings here cannot be believed. The only thing we can be sure of is disability communities will be missing out.
“Disabled people, their carers, whānau, and disability organisations across the country deserve so much more.
“They are tired of losing out on support and cannot reconcile the callous treatment they are receiving under this Government. It all serves to take disabled people back decades."
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