The Government has announced an independent review of the disability support system following the public uproar over new funding rules.
It said the review is in response to financial risks the Ministry of Disabled People Whaikaha took on when it was set up by the previous Labour Government.
The new Disability Issues Minister, Louise Upston, who took over from Penny Simmonds after she was dropped from the role last week, said the review will look at what can be done to strengthen the long-term sustainability of Disability Support Services to provide disabled people and carers with certainty around what they can access.
"We all want to see the best outcomes for the disabled community, their families, and those who care for them, and the coalition Government is focused on maximising this support," Upston said.
She said since coming into office, the Government has received "worrying" advice about the risks inherited by the Ministry when it was set up two years ago, and whether it was adequately equipped to manage them.
Upston said the Crown expenditure on Disability Support Services, adjusted for inflation, has roughly doubled since 2005-06. The Ministry now funds services for approximately 50,000 disabled people and equipment modification for approximately 100,000 people, administering an annual appropriation of $2.3 billion.
"A three-person review panel will be appointed within the next few weeks and will be expected to make recommendations within four months of that date," Upston said.
"I will then consider those recommendations and report back to Cabinet on next steps. The community will be consulted on the review's findings."
The work will be funded through the Ministry's existing budget.
Earlier this year the Ministry was under the spotlight after new funding rules around the purchasing of services were uploaded to its website, causing some community members to feel "blind-sided" since they said there had been no consultation.
The funding included new limits on what disabled people can buy with their funding and impacted the purchasing rules for equipment, respite care and out-of-town accommodation.
The Ministry then later updated the rules acknowledging "the changes have been distressing and caused confusion for the community, and for the service providers who support disabled people".
The clarifications include details about when items for respite such as tablet devices, noise-cancelling headphones, sensory items (such as fidget spinners), and weighted blankets can be funded.
The same day Penny Simmonds was sacked from her role as Minister for Disabled People.
Prime Minister Christopher Luxon said he was removing her from the role to allow a more senior Cabinet Minister to take over after "major financial issues" were discovered with programmes run by the Ministry.
