Budget 2024 is a ‘mixture’ for people with disabilities

By Chris Ford*

Opinion – Disabled people across the country are feeling a mixture of disappointment and relief following the new coalition government’s first budget.

We were relieved to hear of an increase in funding for Whaikaha to ensure continued funding for support for people with disabilities. It is also deeply disappointing that much-needed flexibility has not been restored in terms of individualized financing and alternative care.

The $1.1 billion in new financing is spread over five years, representing an average increase of $220 million per year. This additional money will enable the disability support system to continue to operate, but without much of the flexibility previously available.

The fact that there has been an increase in funding but no restoration of flexibility tells us that the government has not listened to disabled people, their families, whānau and carers throughout the motu who have spoken out at rallies, in the media and in letters to ministers.

Our main call was to bring back flexibility because having it gives disabled people and whānau the power to determine what supports work for us as individuals. We know from many years of research that flexibility leads to improved safety and well-being of people with disabilities.

We are also anxiously awaiting the outcome of Disability Support Minister Louise Upston’s review of disability support. The review panel must listen to the disability community in Aotearoa and communicate our views to government, including our need for flexible support.

Equally important, changes to disability support are not the only government policy that affects the disability community in this country.

As explained in a report published this week by the Disabled People’s Assembly (DPA) and Fairer Futures, titled A thousand cutsand in an open letter to the Minister for Finance, Nicola Willis and Upston (now signed by over 60 organizations), the cumulative effects of the Coalition Government’s policies – announced both before and within the Budget – will make life harder for many disabled people.

The cumulative impact includes various government policies in employment, health, housing, and social care

Te Tiriti, among others.

Based on DPA’s analysis of the budget and previously announced measures, we identified the following impacts:

• The minimum wage exemption remains: We are very disappointed that the new coalition government will not implement the previous government’s commitment to get rid of this unfair, discriminatory policy by 2025. Its continuation will mean that disabled people can earn as little as $2 an hour (gross) while working mostly in separate, sheltered workshops. As a country, we do not tolerate differential pay based on gender or immigration status; nor should we accept exploitative wages awarded to people with disabilities. The United Nations advised the government to put an end to this policy. The government’s decision not to do this will mean that the country will be in breach of its human rights obligations towards people with disabilities in doing so.
• Tangata whaikaha Māori: We are very concerned about violations of Te Tiriti and tino rangatiratanga rights for disabled Māori across Aotearoa. It is impossible to maintain the self-determination and leadership of all disabled people without honoring Te Tiriti. The increase in Māori mental distress due to the current political situation also causes us serious concerns. There is no clear path to address the differences experienced by Māori disabled people compared to their non-Māori disabled peers when it comes to this Budget.
• Health: The well-signaled withdrawal of universal free prescriptions and the refund of the $5 per unit surcharge will impact many people with disabilities, especially those who do not qualify for a Community Services Card (CSC) or have children over the age of 14. While the DPA welcomes maintaining free scenarios for CSC holders, over-65s and children, the relatively low income threshold to qualify for CSC means that many working disabled people (on disproportionately high minimum wages) will continue to have to pay more. for prescription products (before the prescription cap is applied) as many people with disabilities require medications to keep their impairment/condition stable.
• Flats: This year’s budget saw a significant reduction in spending on emergency and transitional housing, which is used by many people with disabilities (as was the case for this author in 2020-2021). While the emergency/transitional housing system is imperfect, the government’s cuts will result in even more people becoming homeless while the motu is in place. If the government wants to reduce the housing waiting list, which includes many disabled people, it should invest significantly in Kāinga Ora to build more homes (as the previous government did) and not just leave the non-government social housing sector to bear the burden .
• Benefit: The Government has announced moves to introduce a traffic light-based sanctions regime which will impact many disabled people on Jobseekers’ Allowance (medically deferred) – formerly sick pay. Many disabled people receiving this benefit are in employment because they have a health condition or disability that prevents them from working full time, and in an increasing number of cases they are unable to claim Maintenance Allowance (formerly Invalidity Allowance) due to its much more stringent criteria qualifying. Penalizing people with disabilities who have difficulty finding work due to discrimination by employers or their inability to work a conventional 9-to-5 job is unjust, inequitable and immoral. Previous government moves to decouple benefits from increases in consumer prices or average wages (whichever was the highest) will also leave disabled people and other beneficiaries much worse off in the coming years. thousands of dollars.

While our worst fears were not realized in Budget 2024, we recognize that the impact of many of the policy changes made to support people with disabilities will only become apparent as the year progresses.

The Disabled People’s Assembly will continue to observe this space and advocate for the rights of people with disabilities.

*Chris Ford is Policy Advisor (South and Central) at DPA New Zealand. This article presents the DPA’s views on the 2024 budget.