Budget Analysis 2024
Phoebe Eden-Mann, National Policy Analyst, CCS Disability Action
Below is our 2024 Budget breakdown by National Policy Analyst Phoebe Eden-Mann, covering social development, Whaikaha funding, and education. New to the Budget? You can read our Budget Day Basics guide here. We will also be releasing a summary and highlighting key information on our social media, so stay tuned.
Click here for our analysis of Budget 2023/24 or click here for previous years’ Budget analyses.
Quick links:
Social Development Budget (covers Disability Allowances, Early Intervention Support Services, Supported Living Payment, Accommodation Supplement, Jobseeker Support and Emergency Benefit, Winter Energy Payment, Community-based Support Services, Connecting and Strengthening Disability Communities, Community Participation Services, Supporting Equitable Pay for Care and Support Workers, Wage Supplement to Replace Minimum Wage Exemption Scheme)
Education Budget (covers Special Needs Interventions, Learning Support and Alternative Education, Increasing Ongoing Resourcing Scheme Teacher Aide Hours, Learning Supports and Wait Times)
Social Development
Please note that due to the recently announced review into Disability Support Funding, some funding has not been allocated or released yet. Much of the $1.1B investment over five years will be included in funding that has yet to be released. As a result of this this budget has been particularly difficult to analyse given the review and reappropriation of some funding, I will update this once we know more.
Information has been taken from the Social Development Vote.
Disability Allowance and Child Disability Allowances
For the year been (2023/24) the Government estimates it spent $466.7M on the combined total for both the Child Disability and Disability Allowance.
For the year ahead (2024/25) they are planning on spending $495.9M on the combined disability allowances, which is $29.2M more than last year. Note that the increases are not an increase in the disability allowance entitlement rates, simply an increase in the funding largely due to our increasing disability population. We know that from international data, that raising the child disability allowance does make a meaningful difference in the lives of disabled children. The fact that there has been no meaningful increase to the disability allowances is extremely disappointing.
Disability Allowance
For the year been (2023/24), the Government estimates it spent $312.6 million on the Disability Allowance (the Government had planned to spend $312.6 million). So, the Government spent the same amount as they planned.
For 2024/25, the Government plans to spend $316.7 million on the Disability Allowance. This is $4.1 million more than they spent last year. Again, increases in funding do not mean an increase in the allowance rate.
Child Disability Allowance
For the year been (2023/24), the Government estimates it spent $154 million on the Child Disability Allowance (the Government had planned to spend $154 million). So, the Government spent the same amount as planned.
For 2024/2025, the Government plans to spend $179.2 million on the Child Disability Allowance. This is $25.1 million more than they spent last year. This increase in spending does not increase the disability allowance rates, so there has been no change in entitlements.
Early Intervention Support Services
For the year been, (2023/24) the Government estimates that it spent $55.6 million on Early Intervention Support Services (support services for disabled people who are early in life, in life transitions, or in vulnerable situations). The Government spent the same amount that they planned to.
For 2024/25, the Government plans to spend $58.3 million. This is $25.9 million more than they spent last year.
Supported Living Payment
For the year been (2023/24), the Government estimates it spent $2528.1 million on the Supported Living Payment (the Government had planned to spend $2546.1 million). So, the Government spent $18 million less than they planned to.
For 2024/25, the Government plans to spend $2661.1 million on the Supported Living Payment. This $133 million more than they spent last year. Note that the increases are not an increase in SLP entitlement rates, simply an increase in the funding largely due to our increasing disability population and historic underfunding.
Accommodation Supplement
The Accommodation Supplement is not a disability specific supplement, but many disabled people are eligible for and receive it.
For the year been (2023/24) the Government estimates that it spent $2101.6 million on the Accommodation Supplement (which is the same amount that they had planned to spend).
For 2024/25 the Government plans to spend $2190.7 million on the Accommodation Supplement. This is $89.1 million more than they spent last year.
Jobseeker Support and Emergency Benefit
For the year been (2023/24), the Government estimates it spent $4048.2 million on the Jobseeker Support and Emergency Benefit (which includes Jobseekers with Medical Exemption). The Government had planned to spend $4102.7 million). So, the Government spent $544 million less than they planned.
For 2024/2025, the Government plans to spend $4435 million on Jobseeker Support and Emergency Benefit. This is $386.8 million more than they spent last year. This increase in spending does not increase the benefit rates, so there has been no change in entitlements.
We do have concerns regarding the recently announced sanctions for people on Jobseeker Support including those with medical exemptions, and although there has been an increase to this funding, it does not raise entitlements, and disabled people and people with health conditions on Jobseeker Support will still face sanctions under the recently announced policies.
Winter Energy Payment
The Winter Energy Payment is an extra payment from 1 May to 1 October to help with the cost of heating your home over the winter months. You must be getting a main benefit, pension or Jobseeker Support Student Hardship. Many disabled people qualify for the Winter Energy Payment.
For the year been (2023/24), the Government estimates it spent $535.5 million on the Winter Energy Payment (the Government had planned to spend $553.5 million). So, the Government spent $18 million less than they planned to.
For 2024/25, the Government plans to spend $554.9 million on the Supported Living Payment. This $19.3 million more than they spent last year.
Community-based Support Services
For the year been (2023/24), the Government estimates it spent $824.7 million on community-based support services (the provision and support of services for disabled people living in a community based setting). The Government had planned to spend $824.7 million. So, the Government spent the same amount as planned
For 2024/25, the Government plans to spend $934.2 million on community-based support services. This is $109 million more than they spent last year.
Connecting and Strengthening Disability Communities
For the year been (2023/24) the Government estimates that it spent $72.5 million on Connecting and Strengthening disability communities, this is the same amount that the Government had planned to spend.
For 2024/25 the Government plans to spend $75.2 million on Connecting and Strengthening Disability communities, which is $2.7 million more than last year.
Community Participation Services
For the year been (2023/24), the Government estimates it spent $123.1 million on community participation and vocational services (the Government had planned to spend $123.1 million). So, the Government spent the same amount as planned.
For 2024/2025, the Government plans to spend $116.2 million on community participation and vocational services. This is $6.9 million less than they spent last year.
Supporting Equitable Pay for Care and Support Workers
For the year been (2023/24), the Government estimates it spent $19.9 million on Supporting Equitable Pay for Care and Support Workers. So, the Government spent the same amount they planned to.
For 2024/25, the Government plans to spend $17.4 million on the Supporting Equitable Pay for Care and Support Workers. This $2.5 million less than they spent last year.
Wage Supplement to Replace Minimum Wage Exemption Scheme
Updated 4 June 2024
The Minimum Wage Exemption Scheme (MWES) is a scheme that allows employers to employ disabled people at a significantly decreased rate, usually much lower than the minimum wage; in 2021 the average hourly rate for disabled people employed via the MWES was $5.02 (from an OIA submitted by CCS Disability Action).
It was announced in the last Budget that the MWES would be abolished, and replaced by a Wage Supplement. For the year been (2023/24), the Government estimates it spent $608,000 on the Wage Supplement to replace the MWES.
On Budget Day, it appeared that the Wage Supplement was continuing because it had been costed out until 2028, leading me to report that the Wage Supplement was fully funded and the work would continue. However, upon further investigation it became apparent that the Wage Supplement has been scrapped, and the MWES will continue.
This is an incredibly disappointing decision from the Government, and we are firmly opposed to the Minimum Wage Exemption Scheme. It is fundamentally exploitative of disabled people, and the Wage Supplement was a step towards addressing that issue. By scrapping the Wage Supplement, that exploitation will only continue, and we urge the Government to rethink this decision.
Whaikaha - Ministry of Disabled People
For the year been (2023/24), the Government estimates that it spent $2,361.1 million on Supporting Tāngata Whaikaha Māori and Disabled People. The Government spent the same amount that they planned to.
For 2024/25, the Government plans to spend $2,594.4 million. This is $233.2 million more than they spent last year.
As mentioned, the Government has recently announced an Independent review into disability support services funded by Whaikaha - Ministry of Disabled People, along with an additional $1.1 billion investment in disability services over five years. However, much of that $1.1 billion is subject to the results of an independent review which, so it is tricky to get a clear and accurate picture of the current state of disability funding.
Education
All information has been taken from the Education Vote.
Special Needs Interventions
In the year been (2023/24), the Government estimates it spent $426.2 million on Special Needs Interventions, which was the same amount as they planned to spend.
For the year ahead (2024/25), the Government plans to spend $384.9 million. This is $41.2 million less than they planned to spend last year.
Note: Although there has been a large cut in Special Needs Intervention funding, a significant amount of this is due to staff redundancies and one-off funding for targeted support for Pacific Learners and Families not being renewed. The remaining difference is an approximately $11 million cut. It’s possible that the funding has been reappropriated to Learning Support and Alternative Education, which has seen a $43.8 million increase for the year ahead. I will reach out to the MoE for clarification on this and update this page when I get a response.
Learning Support and Alternative Education
For the year 2023/24 the Government estimates that it spent $740.1 million on the Ministry of Education’s Learning Support and Alternative Education (which is the same amount that they had planned to spend). This includes supports like the Ongoing Resourcing Scheme (ORS), the Early Intervention Service, Resource Teachers, and more.
For 2024/25 the Government plans to spend $783.9 million on Learning Support and Alternative Education. This is $43.8 million more than they planned to spend last year.
Note: It is unclear just yet exactly how much of this funding is going specifically to disability related learning supports and how much of it is going to Alternative Education. Alternative Education is a pathway for learning where young people receive additional learning support that is individually targeted and can support students transition back into school, training, or employment. Disabled students could benefit from this, but it is not a disability specific programme.
It is possible that much of the funding boost has been reappropriated from the Special Needs Intervention funding, as there has been a $41.2 million decrease in funding and a $43.8 million increase in Learning Support funding. I will reach out to MoE for clarification if this is the case, and will update this once they respond.
Increasing Ongoing Resourcing Scheme Teacher Aide Hours
In the year been (2023/24), the Government estimates it spent $25.4 million, which was the same amount as they planned to spend.
For the year ahead (2024/25), the Government plans to spend $25.4 million, with no estimated increase in funding predicted for the next five years.
Learning Supports and Wait Times
Ongoing Resourcing Scheme: In the year been (2023/24), the Government estimates that children waited 13 calendar days on average to access ORS support. This is less time than the target of 22 calendar days. For the year ahead, the Government has kept the target at 22 calendar days.
Early Invention Service: In the year been (2023/24), the Government estimates that children waited 99 calendar days on average to access the Early Intervention Service. This is 10 calendar days longer than their target of 90 days, and very similar in wait times compared with the previous year. They have kept the target at 90 calendar days.
Behaviour Service: In the year been (2023/24), the Government estimates that children waited 52 calendar days on average to access the Behaviour Service. This is 2 calendar days longer than their target of 50 days. For the year ahead they have kept the target at 50 calendar days.
Communication Service: In the year been (2023/24), the Government estimates that children waited 77 calendar days on average to access the Behaviour Service. This is 2 calendar days longer than their target of 75 days. For the year ahead they have kept the target at 75 calendar days.
Ngā mihi
That concludes this year’s Budget analysis – if you made it all the way to the end, thank you for reading! It can be overwhelming to interpret the huge amount of information released, so we hope this has helped you (and if it has, why not share this article with your friends?). We will continue to release key messages on our social media: Facebook, Instagram, and LinkedIn.