Age Concern New Zealand Media Release

25 November 2010

Axing inflation adjustments puts services at risk – Age Concern

Services to vulnerable older people risk being compromised by cuts expected to be made in the next Budget.  

"Any move by Government to axe adjustments for inflation from the services they purchase from community and voluntary organisations would effectively mean cuts," Age Concern chief executive Ann Martin says.

"That's critical in high-inflation times such as these.

"The CPI adjustment is a vital part of funding the delivery costs for these services throughout the country. If CPI increases are not included, older people in communities may not receive the support they need from our Age Concerns.

"Older people facing problems like elder abuse and neglect, chronic loneliness and social isolation and needing first port-of-call case management may be less able to get the full help they need.

"Age Concerns around the country are finding the demand for community support is continuing to rise as a result of the economic downturn.  At the same time, donations to our services are under pressure.  

“Age Concern New Zealand wants to continue to provide services to older people in our communities of the same standard and quality.  Removing the CPI adjustment, risks compromising our already stretched budget for service delivery by Age Concerns,” Ms Martin commented.  

Age Concern says it's vital that Government continues to compensate community service providers for cost increases in the 2011 Budget.  

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