Position Paper: Opposition to DES Funding Cuts
Since 2015, DPO Australia and Inclusion Australia have represented the collective voice of people with disability within the Department of Social Services’ (DSS) Disability Employment Service (DES) reform process.
Background
Disability Employment Services (DES) is the key national program designed to help people with disability find or keep a job and plays an important role in improving the social and economic participation of people with disability. Some people with disability choose to enter DES, however most DES participants are required to be in the program (mutual obligation) to receive Centrelink social security entitlements.
Evidence shows that the DES program, which costs $800 million dollars a year, has repeatedly been unable to deliver a level of employment outcomes that people with disability need and have a right to expect.
A little more than 1 out of 10 people entering the DES program get a job, and stay in that job, for at least twelve months. Forcing people with disability to engage with DES to receive social security entitlements when it is known that they have a high chance of experiencing failure (or other poor outcomes) is unfair.
In 2016 the Commonwealth Government released their discussion paper announcing they were undertaking reforms to the DES program: creating competition by opening the DES market, and by providing greater choice and control to participants within the program.
Our support for these reforms were contingent on a substantial investment by the Commonwealth for people with disability to get the information and support they need to make an informed choice within the new DES marketplace.
Disappointingly, we are now unable to support fundamental features of the DES reforms that come into effect on 1 July 2018. Key aspects of these reforms fail to respond to the known needs of people with disability and are unlikely to increase their chances of finding or keeping a job.
Funding Cuts
Commonwealth reforms to Disability Employment Services will impose substantial funding cuts to participants with higher support needs due to the implementation of a new risk-adjusted funding model. As representatives of people with disability and within the DES reform process, we do not support this reform.
Our analysis of the impact of Risk Adjusted Funding finds that there is a significant average cut of funding for DES participants with higher support needs, particularly people with intellectual disability and autism.
The funding model has ignored research evidence that people with higher support needs require more support hours to achieve sustainableemployment outcomes when compared to other people with disability. Providing lessfunding for these cohorts of people with disability puts the current participation and outcome rates for these groups at risk.
From 1 July 2018, funding for achieving employment outcomes will be cut on average by:
•30.5% for participants with intellectual disability
•21% for participants with autism
This cut is on top of an estimated 23% loss in funding value since 2010 due to the lack of indexation.
Funding for achieving employment outcomes for other participant groups will increase from 27.6% to 78.2%.
We understand that the Commonwealth wishes to incentivise employment outcomes by increasing funding to groups that have performed relatively poorly. This incentive should not be achieved by cutting funds to people with higher support needs.
As of 1 July, employment providers who predominately provide services to people with disability who have high support needs will be put at financial risk.
The funding cut will also make this group of participants less attractive to DES as they require relatively higher support hours to achieve employment outcomes.
Funding from 1 July 2018 should include at least a 23% increase to address the lack of indexation since 2010 so that providers have adequate funding to improve the employment outcomes of all people with disability, particularly those who have higher support needs.
DPOA/IA Joint Position Paper: Opposition to DES Funding Cuts (May 2018)