Report

Social service system: the funding gap and how to bridge it

Publisher
social services government funding New Zealand
Description

This research has found that the social service system in New Zealand is not working as well as it could be and that, as a result, providers delivering critical services to those in need are underfunded and over-reliant on the philanthropic sector. Results indicate that currently, the government funds providers for less than two-thirds of the actual cost of delivering the essential services they are contracted to provide and that the total underfunding is estimated to be at least $630 million annually.

Recommendations:

1. That government acknowledge the critical role and importance of the provider and philanthropic sectors in ensuring the wellbeing of New Zealanders and work in partnership to develop underlying principles as a basis for change across the social services system.

2. That government establish, as an underlying principle, that all essential services that would otherwise be delivered by government agencies should be funded at a minimum of 30% ‘overhead costs’ and 5% ‘reserve costs’ as a proportion of total income.

3. That government establish, as an underlying principle, that the wage disparity should be closed between government agencies and those providers delivering essential services that would otherwise be delivered by government.  

4. That government establish, as an underlying principle, that where providers’ contracts are for essential services that would otherwise be delivered by government, the contracts should cover the additional demand for those services that are currently being absorbed by providers.

5. That government establish, as an underlying principle, that there is no expectation that additional income generated by providers should be directed towards funding essential contracted services.

 

Publication Details
Publication Year:
2019