Submissions

To: Finance and Expenditure Committee
Date: February 2025

Purpose

This submission’s primary purpose is to articulate the detrimental and disproportionate impact of past austerity measures and proposed fiscal policies on disabled people, their families, and carers. DPA aims to advocate for adequate and flexible funding across various social sectors—including disability support, welfare, housing, health, and education—and to ensure that disability perspectives and Te Tiriti o Waitangi principles are fundamentally embedded in any social investment approaches.

Summary of DPA submission

DPA expresses significant concern regarding the detrimental and disproportionate impact of government fiscal and tax policies on disabled people and their families. DPA highlights that the 6.5% to 7.5% public sector spending cuts implemented last year have already led to reduced social wellbeing, poorer health outcomes, and a loss of essential equipment and respite care for disabled individuals. DPA is particularly worried that continued pressure for cost savings and a lack of additional funding will further exacerbate the challenges faced by disabled people, their carers, and support networks.

Regarding Disability Support Services (DSS), DPA notes ongoing anxiety and pressure among disabled people and their families following the March 2024 announcements.

DPA understands and supports the potential benefits of a social investment approach when well-executed, particularly its focus on localised, flexible service delivery and outcomes-based measurement. However, DPA raises several significant concerns: the lack of embedded disability and other demographic perspectives, the omission of Te Tiriti o Waitangi, limited engagement with community organisations, and the expectation for these organisations to deliver outcomes without sufficient funding.

DPA recommends that the Social Investment Agency undertake impact analysis on underserved communities, adequately fund community organizations, and engage continuously with disabled people and DPOs in this process.

On employment and welfare, DPA is concerned about the impacts of changes to support and benefit systems, including "traffic light settings sanctions". DPA refutes the framing that disabled people are unwilling to work, instead highlighting labour market barriers, inaccessible workplaces, and employer discrimination. DPA advocates for a compassionate, supportive, and fair welfare system that provides a sufficient income for dignity and full community participation, regardless of work status. DPA also addresses the housing crisis, noting that disabled people face significant challenges due to the lack of accessible housing, high rents, and tightened emergency housing grants. They urge the government not to sell off social housing (as 70% of Kainga Ora tenants are disabled people) and to significantly increase investment in accessible social housing construction to eliminate homelessness.

Key Recommendation/Finding:

DPA recommends that Government properly resource disability support in line with the principles of Enabling Good Lives across the Health, Accident Compensation Corporation (ACC), Housing, Education and Social sectors to reduce the pressure on Disability Support Services that comes from cost cutting in other agencies.

Supporting Statement 1:

"Many disabled people, their whānau, and their carers have felt continually besieged by many of the changes that have been made over the last year including the reduction in the annual benefit adjustment formula, changes to Disability Support Services (DSS), the removal of subsidies for public transport, cuts to educational support and real terms reductions in the minimum wage to name just a few."

Supporting Statement 2:

"Ensuring a more sustainable approach to disability support funding is to ensure that a cross-agency approach is taken to support the disability support system so that the pressure for supporting disabled people does not fall on MSD’s Disability Support Services alone."