5 September, 2024

Oranga Tamariki still owes millions to care providers

Care providers face uncertainty with $5 million in delayed funding from OT causing disruptions.
David Hanna, Director of Wesley Community Action in front of a patterned wall

This article from The Post by Anna Whyte on September 5th features NZCCSS Executive Officer Nikki Hurst and Director of Wesley Community Action David Hanna.

Since March, many care providers have been struggling due to delays in funding from Oranga Tamariki, with a total of $5 million still owed as of September.

The funding, meant for services in 2024, was due nearly two months ago. Despite reassurances, 12 payments remain outstanding, causing stress and uncertainty for organisations trying to support vulnerable families and individuals.

Nikki Hurst, Executive Officer of the New Zealand Council of Christian Social Services, highlighted the tough decisions providers are now facing due to the prolonged uncertainty.

“Where there is clarity – certainty is still a stretch – people now understand whether they will or won’t be able to provide a service ”

Hurst explained

Many organisations are considering restructures and potential redundancies because of the funding cuts. Providers are also having “really, really hard conversations” with long-term clients about the potential end of services.

“They’re even harder to have because there’s still no clarity about whether or not there’s somewhere else to go”

Nikki Hurts adds

Oranga Tamariki has also been attempting to claw back funding from providers before final reports are due, adding further strain. Some providers have been informed that their expected payments won’t arrive, making it difficult to cover essential costs like staff wages and rent.

As of last week, none of the providers whose contracts ended on 30 June had new services in place for their clients, and uncertainty persists around future funding and transitions. The situation is leaving care providers with challenging decisions and little clarity on the way forward.