Budget fails to support costs of social service delivery

Presbyterian Support Northern (PSN) welcomes some of the new investment announcements in today’s Budget 2025, but is concerned about rising costs for social service providers.

“PSN is pleased to see updates to the Accommodation Supplement boundaries, Working for Families abatement threshold increases, and continued food bank funding,” says PSN CEO Shaun Greaves.

“However, we would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts.

“In the case of PSN,  we have seen a consistent year on year reduction in Government funding in real terms, and each year this reduction in support impacts the level of services we can undertake for our clients.

“While we acknowledge that the Government needs to reduce costs, spending restraint should not be at a cost to social service organisations who take up the responsibility of caring for vulnerable New Zealanders  hardest hit by a faltering economy.”

Greaves says the Government’s launch of the Social Investment Fund last week was an encouraging sign, but it’s equally important to invest in ensuring organisations are able to continue delivering on existing social service contracts.

“One of our concerns from Budget 2025  is the lack of support for community providers in delivering the increases in Kiwisaver employer contributions.

“This is an extra cost, which although is good for our employees, will take money away from our frontline service delivery.”

While Greaves acknowledges the Budget 2025 investment in overhauling the way emergency services respond to 111 mental health call outs,  he says it falls short of supporting critical services like Lifeline, a major mental health helpline.

“Lifeline is an important national suicide and mental health helpline delivered by PSN,” he says. We receive nearly 90,000 calls and 240,000 texts a year, but receive no Government funding. We would have liked to see more in the budget to support Lifeline as we’re often the first point of call for people in mental distress.”

Greaves says that while the increase in the abatement threshold for Working for Families will help more families, the downside is that the first year of the Best Start payment will be income tested.

“This is a concern for us as it’s critical for first time parents to have that extra payment to help them give their child the best possible start in life.

“At PSN, we deliver many Government contracts across a wide range of social services, as well as disability support and aged care services.

“Budget 2025 is a missed opportunity to truly support children and families doing it tough, and invest in a better future for our country. 

“As a valued partner (with 140 years of service), PSN will continue to work constructively with government and communities to deliver impactful, value-for-money solutions to the issues our country is grappling with.”