An evaluation of the effectiveness, cost, funding, and design elements of a grants program supporting refugees, humanitarian entrants and other vulnerable migrants and communities. The aim of the program is to equip and empower eligible clients and communities to address their identified settlement needs to improve social participation, economic wellbeing, independence, personal wellbeing and community connectedness. The program is intended to operate as an early intervention model that enables these cohorts, via service providers and community bodies, to achieve full participation in society as soon as possible.

The evaluation focuses on the outcomes achieved through the allocation of program funding, but recognises that functions and funding across the settlement sector more broadly are relevant factors and isolating the impact of the program itself can be challenging. The evaluation included formative and summative elements, and drew on administrative data and input from nearly two-thirds of all the funded program providers across Australia. 

The evaluation found:

• SETS is meeting its objectives as an effective early intervention program which helps to reduce longer-term economic and social costs by supporting the early attainment of settlement outcomes. SETS also bridges gaps in the capability of mainstream services that are not delivered in a way that is culturally appropriate and accessible to migrant communities
• at the time of evaluation insufficient funding had been an ongoing challenge, with inflationary cost and wage pressures acting as a barrier to effective service delivery. This has been exacerbated for certain providers. This is due to changes to the settlement profiles of their local communities, such as increases in client intakes and/or new cohorts with complex needs, and
• insufficient funding is also driven by provider behaviour. This includes servicing ineligible clients, and delivering services that are outside the scope of SETS and offered by other settlement and mainstream services.

The report makes a range of recommendations for improving the grants program across the following areas.

• Enabling more effective service delivery through a provider market characterised by diversity, encouraging choice for clients.
• Enabling more effective practice through a consortium model, while recognising that there is limited evidence it promotes more efficient service delivery.
• Complying with client eligibility criteria to minimise duplication and avoid the inadequate service provision which may result from a universal approach.