If you’ve been keeping up with recent funding figures released by the NDIS, you may be surprised to hear not all participants are spending their funding budget. In fact, the Commonwealth Department of Social Services was so concerned about the lack of spending they commissioned researchers from the University of Melbourne to conduct a project to look into plan utilisation rates in the NDIS.
But let’s be clear, under-spending participants are generally not doing this by choice. The NDIS grants funding based on a participant’s genuine needs. Some underlying issues are making spending difficult for specific groups of NDIS participants and highlight a much-hidden inequality.
The stand-out groups are people living in remote and very remote areas of Australia and Aboriginal and Torres Strait Islander participants. These groups are particularly challenged to find appropriate supports.
The Complexity of The NDIS
The average Joe finds the NDIS a maze to navigate. Becoming an NDIS participant or provider can be confusing, hard work and tiring. Some participants find their plans hard to understand or struggle to find providers that meet their needs close to home. For example, the culturally and linguistically diverse group face language barriers that hinder their ability to use appropriate supports.
It is little wonder there are multitudes of people with a disability who cannot utilise their NDIS funding, and not many realise spending their funding is a requirement.
Who Isn’t Spending?
The latest NDIS data reveals that 32% of participants in the NDIS only spend 50% of their allocated budget.
Participants from culturally and linguistically diverse backgrounds and Aboriginal and Torre Strait Islanders often receive more extensive NDIS plans than participants from other groups. However, according to The Conversation, these participants often spend equal amounts to their counterparts on smaller plans. This could explain the lack of utilisation in these groups to a degree, but we should keep in mind the NDIS sees a need for these people to access further supports. They just lack the services or the ability to find the services they require.
There is no surprise that people with disability living in remote and very remote areas of Australia are often underspending compared to city dwellers. When the University of Melbourne studied Victoria’s NDIS Data, they found participants were receiving smaller plans. Access to disability supports is a challenge for those participants living in regional areas, something current providers should seriously consider.
It could be assumed the NDIS are aware of the lack of registered providers in these areas handing out smaller plans as a result. Remote locations need NDIS provider services, and participants are funded and ready to be supported. Despite their plan sizes, they are still underspending.
Similarly, a lack of utilisation can be identified in some disability groups. This includes those living with psychosocial disability, which includes long-term mental health disorders like bipolar, schizophrenia and social anxiety.
In an article addressing NDIS plan utilisation, The Conversation recently pointed out:
“While the national average utilisation rate for core supports is 81%, capacity building stands at 59% and capital at 56%. Many people have reported challenges in getting home modifications, and high-cost equipment approved even when these are in their plans.”
What Happens if an NDIS Participant Doesn’t Use All Their Funding?
Most NDIS plans run for 12 months before they are reassessed. The NDIS does not like unused funding unless there is an excellent reason. Funding criteria will be re-evaluated for participants that consistently fail to spend on supports and services.
Understandably, the NDIS needs to consider whether supports are “effective and beneficial” for participants if they are not actually being used.
Are you ready to help these groups gain access to provider supports? If you are considering changing your registration group click the link below.
