Budgeting Service funding cuts
On 5 May 2014 the then Prime Minister, John Key announced Budget Service funding increases to the tune of an extra $22m.
Paula Bennett followed this up on August 21, 2014 with the media reporting Ms Bennett with comments such as: ‘‘Budgeting services work alongside some of the most vulnerable people in the community’’ and ‘‘The government is committed to supporting this work’’, ‘‘Nongovernment organisations understand communities and the challenges they face like no one else, and budgeting services do an incredible job helping people managing on low incomes get the tools and support they need’’.
These were certainly great sentiments and the funding welcomed but where has it gone because it’s not reaching most Budget Services?
In 2016 most budget services around New Zealand have taken heavy funding cuts in budget funding from Ministry of Social Development (MSD). MSD say they have kept some money to develop training and a data collection tool but they have initiated cuts before they have provided the infrastructure.
MSD decisions have put many budget service providers in jeopardy of being unable to continue for more than a year. Budget service providers have new contracts that started on November 1, 2016, with new criteria to achieve but to date there has been no training nor any dates put forward for training, yet the first reporting is in April.
Budget service providers generally deal with beneficiaries and low income earners. Their role is to help those financially atrisk to get their finances in order and get them back on track.
The provider tries to equip the client with skills to take back into their lives that they can continue to employ for ever. Why has Hauraki and the Coromandel been hit so hard with funding cuts? Why have rural areas in particular been cut so much?
Coromandel has lost 61 per cent of its budget funding and Hauraki 58 per cent.
The Te Aroha Service received less than a quarter of its funding received in the past but under the new, revamped systems is seeing a massive increase in Work and Income referrals.