Minister's Press Release

Immediate action will be taken to stabilise the disability support system after an independent review found the Ministry of Disabled People – Whaikaha was ‘ill-prepared’ to deliver these services when it was established in 2022.

“This Government is committed to supporting disabled people, which is why we provided a record $1.1 billion funding boost to disability support services in this year’s Budget,” Disability Issues Minister Louise Upston says.

“We must now take urgent action after an independent review found the delivery of these services is in a dire state, with unsustainable spending and a lack of fairness and transparency around what support disabled people can access.

“The review found much of the problem stems from the previous government’s ‘rushed’ six-month establishment of the Ministry of Disabled People – Whaikaha.

“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.

“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 is likely this year unless we act 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.”

Cabinet has therefore decided to take the following actions:

• The Ministry of Social Development (MSD) will become responsible for delivering disability support services by October 2024.
• The Ministry of Disabled People – Whaikaha will 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 will lead implementation of the recommendations and help facilitate the transfer of disability support services to MSD.
• Indicative budgets and monitoring of Needs Assessment and Service Coordination organisations (NASCs) will be reinstated.
• Funding for residential care and service providers will be maintained at 2023/24 levels while a rapid review of pricing is conducted.
• Expanding the Enabling Good Lives approach will be paused 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 will be made later in the year after consulting the disability community,” Louise Upston says.

“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.

“I would like to thank Sir Maarten Weevers, Leanne Spice and Reverend Murray Edridge for their work on the review.”

Notes for editors

• Cabinet has approved that the Ministry of Disabled People - Whaikaha will become a stand-alone government department, with the intention to enact this by Order in Council in October 2024.