Social service provider Family Start losing $14m in funding

Family Start, the national flagship programme that provides support for families of children under two is set to lose $14m in funding and 107 full-time positions as Oranga Tamaraki adjusts its budgets.

This week numerous organisations have been told of either a reduction in budget, or a complete cut of their contract. It comes after Oranga Tamaraki faced its own cuts of $30m in its annual budgets.

One of the behalf of the Family Start National Collective Dr Nicole Coupe confirmed with 1News that it was told on Wednesday of the budget cuts. "This equates to 107 FTE," she says. "1600 children under the age of two that won't be seen by our workers nationwide."

The rationale, she understood, was "a component of the budget cuts across all ministries".

It's news that's been met with significant concern across the sector, as they collectively struggle with a loss in funding. Social Service Providers chief executive Belinda Himiona said it would see families lose out.

"Family Start is focused on under two-year-olds and vulnerable families, it is an established and valued service."

Despite the Government and agency's assurances budget cuts would not result in front-line cuts, she says the reality is the complete opposite. "These are front-line staff."

She says many of the other organisations are still waiting to hear about their fate.

"There's a high level of distress right now amongst the community-based social service sector, there's a lot of unknown for some," she says. "The scale is not clear, but what we can say is the range is very broad and includes teen and parent services, intensive wrap around services, caregiver support, family violence and counselling services.

"We'd really welcome information about the scale of that nationally, but that has not been forthcoming so far."

Auckland-based E Tipu E Rea Whānau, a service that provides support to young parents, is another that's facing significant cuts. Its CEO Zoe Hawke said it's set to lose three of its social workers, and that will see them struggle to continue their mahi.

"The core of our mahi, the core of our work is prevention, preventing uplift," she said. "Young parents in particular tend to struggle in a time that's really hard for them. We have prevented so many uplfits, unfortunately we may not be able to do that any longer."

Another social service provider, North Shore Women's Centre, is looking at stopping all its services. Chief executive Tracey Swanberg said the loss of its contract means it has no funding for it to continue.

"We will be stopping all services so that will involve social work, counselling, assessment services, free legal service and our crisis support line."

In an OIA obtained by Q+A and 1News Oranga Tamariki (OT) provided a list of more than 1000 providers whose contracts were due to expire in June. The agency told Q+A last week it expected to tell all those still waiting on their fate by Wednesday, or within a few days of that.

In an updated statement yesterday, OT deputy chief executive Darrin Haimona said it was still in negotiations regarding the contracts, but that he expected less than half of the 1000 would be cut.

"We have communicated with providers since March and kept them updated as we progressed through the process. We continue to contact all providers to give them certainty.

"These decisions were made in line with our priorities and the need to provide children in our care with the services they need the most."

In relation to Family Start he said there is no discontinuation of service, but that budget reductions would be based around the number of families in the area each service is working in.

"Overview of alternative whanau support services in each region were also factored into proposed changes to Family Start."

The Minister for Children is pushing back at the suggestion the Government's budget cuts are responsible for the loss of any front-line staff responsible for the care of vulnerable children.

Karen Chhour says she's made it clear to Oranga Tamariki her expectation that "the child" must be kept at the centre of all its funding decisions. "Ultimately, it must put the security and safety of children in its care ahead of the safety and security of the businesses run by its providers."

She also clarified that the reported $30m reduction in Oranga Tamariki's budgets is less of a cost cut and more of a cost saving as the agency looks to recover unspent funding.

Chhour says the $30m is "the amount in total OT assumes it will be able to recover from providers after the term of all contracts has concluded, because of under-delivery of services".

For example where a service is funded to support 10 children a year, and it only ends up supporting six, then the remainder of the funding would be returned to Oranga Tamariki.

She says there was also a change in the types of contracts Oranga Tamariki was using which meant that services would be funded for "outcomes" rather than a "fee for service".

"Oranga Tamariki is constantly assessing and reviewing the demands for its care and protection support around the country. The demand is not static. So therefore, the efficient funding of these services, ensuring all New Zealand taxpayers get the best services for their money, cannot be static."

Family Start Collective's Dr Nicole Coupe responded to the minister's statement, saying it was "politic speak to meet the current political demands".

And while she said "kai pai" to the minister urging OT to keep the child at the centre of all its funding decisions, she can't help but question if that is what's happening.

"Is the child safe, with the decisions OT have made in the past and present?"

Kahurangi Carter, Green Party child spokesperson, said: "The Minister is making a semantic argument, like she did repeatedly with her answers in Parliament yesterday."

"She should take accountability and give assurances that children will not be harmed.

"Making cuts and taking savings from child and family services at this time is unacceptable when the level of need in this sector is so high.

“It’s implausible that taking $30m a year won’t make a difference to the level of provision. And even if this was available, the level of need, as demonstrated again yesterday by the tragic report into the actions of agencies following the death of Malachi Soubecz shows that this funding is desperately needed in the sector, and not to be repurposed for tax cuts."

Labour children’s spokesperson Willow-Jean Prime also pushing back at the minister's comments today that frontline services would not be affected.

“When we’re talking about services like teen parenting support, family and sexual violence counselling, and early intervention programmes for children and their families, these are most certainly frontline.

“These are essential services for children and whānau that keep children safe in their homes and support nurturing families. In some regions, there’s only one of these services available."

“...This puts children in danger and could lead to more uplifts," she says. "These services are vital to keep children safe. They must not be cut."