Budget 2023: Funding boost a welcome relief for disability service providers

The disability sector is breathing a sigh of relief after the significant boost to funding in this year’s Budget, says New Zealand Disability Support Network CEO Peter Reynolds.

Funding to the sector will be increased by 8.2% from $2.074b in 2022/23 to $2.245b in 2023/24, with a total of $863.6m in additional funding over the next four years.

“The disability sector has been crying out for more funding as inflation has chipped away at our ability to provide services and retain staff. Disability providers want to pay staff fairly, but we have needed government funding to do so,” says Reynolds.

“This money will help to address the staffing crisis the sector has been facing due to the combined pressure of the need to pay staff more and to increase staffing levels to meet rising demand for disability services.

“The sector is currently working through pay equity negotiations to boost the incomes of disability support workers. Providers have been clear with the government that we need more money to enable a fair outcome.

“While this extra funding will help with the immediate cost pressures disability service providers are facing, that is not the end of the story. There is still a huge amount of unmet need in the disability community and that is going to require ongoing funding increases above the rate of inflation for years to come. On top of that, costs will continue to ratchet up. NZDSN will continue to engage with the government on these issues”, says Reynolds.