The Government’s decision to not raise funding for disability support providers to account for the increase in the minimum wage means providers will have to cut the hours that care and support workers spend with disabled people, says New Zealand Disability Support Network CEO Peter Reynolds.

Many care and support workers are paid at or near the minimum wage. Usually, government agencies increase funding to providers to pay for the annual minimum wage rise on April 1. However, this year, the Ministry of Social Development has confirmed that there will be no more funding, even though the cost of providing care will increase.

“This funding freeze will mean real cuts to the care and support that disabled people receive. Disability support providers are nearly entirely government funded. When the Government increases costs by raising the minimum wage but refuses to give disability support providers extra funding to meet that cost, something has to give. Providers will be forced to make cuts. It will be disabled people and their families who suffer.

"Disability support providers are in favour of the minimum wage increase and pay equity for our workers, but you can’t get blood from a stone. The Government’s decision not to give the sector a funding adjustment for the minimum wage increase is the latest in a series of cuts and freezes that are diminishing our ability to provide care and support to disabled New Zealanders.

"On April 1, the Government is planning to increase its landlord tax cuts from 80% interest deductibility to 100%, at a cost of $160m a year. That would fund the minimum wage increase for care and support workers several times over. The Government needs to explain why it is prioritising yet more tax cuts for landlords over care and support for disabled New Zealanders,” says Mr Reynolds.

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