Disability Homes in Crisis: Workers Strike, Funding Gaps Threaten Services for Thousands

Workers at Scope, Victoria’s largest disability housing provider, have taken protected industrial action, walking off the job at 35 homes and rallying at their Hawthorn headquarters. This comes amid ongoing disputes over pay and conditions, and a wider funding crisis threatening the homes of nearly 2000 NDIS participants across the state.

The action highlights the serious financial pressures facing disability service providers. While some providers have reached new workplace agreements to address funding shortfalls, Scope is still in negotiations.

The Funding Squeeze: Why Disability Homes are at Risk

The current crisis stems from a complex funding situation. From 2016, the Victorian government transferred the operation of 549 state-owned disability homes to five private providers: Scope, Aruma, Melba, Life Without Barriers, and Possability.

These homes came with existing public service workplace agreements. These agreements included higher wages, staff ratios, and standards of care that exceeded what the National Disability Insurance Scheme (NDIS) typically funds.

To bridge this gap, the Victorian government initially provided $2.1 billion in subsidies over eight years. However, these crucial subsidies ended on January 1, leaving providers with a significant funding shortfall. The National Disability Insurance Agency (NDIA), which oversees the NDIS, has not stepped in to cover this gap.

Impact on Residents and Services

The cessation of subsidies has already led to the closure of over 80 homes. Many vulnerable residents have been forced to seek alternative accommodation, often facing disruption and uncertainty.

This situation directly impacts NDIS participants who rely on Supported Independent Living (SIL) services. SIL provides support for people with disability to live as independently as possible in their own homes, often with shared living arrangements and round-the-clock care.

Scope’s Challenges and Controversial Transport Changes

Scope, which operates a significant number of these transferred homes, has confirmed it is still negotiating with employees. The provider aims to align its government-owned homes with the workplace agreements in place across its other services, reflecting the current NDIS funding model.

In a further move, Scope has begun selling its fleet of specialist vehicles. The provider is asking its 1300 residents to fund transport services, like taxis, directly from their individual NDIS plans. Scope states this change brings them in line with the broader disability sector’s approach to transport.

A Scope statement highlighted the “broader challenge of delivering sustainable, high-quality disability services in a changing funding and NDIS environment.” The organisation continues to advocate for NDIS pricing arrangements that better reflect the complex needs of people with disability and the cost of delivering specialised services.

Union and Sector Response

Paul Healey, the Victorian branch secretary for the Health and Community Services Union (HACSU), has strongly criticised Scope’s actions. He called on both federal and state governments to intervene urgently to prevent further home closures and protect workers and residents.

“This is the same company that has shut approximately 45 houses and are proposing to remove all of the transport options for people with disability who live in their group homes… Workers aren’t stupid, and they’re not copping it,” Healey stated.

How Other Providers Are Responding

While Scope faces ongoing disputes, other providers have reached agreements with HACSU. Aruma, Melba, and Life Without Barriers recently negotiated new deals that eliminate the more generous conditions tied to the old government industrial agreements.

Melba CEO Melissa Webster explained that their new pay agreement helps keep many homes open, though some older state-owned buildings still present challenges. She stressed that many residents wish to remain in their long-term homes, despite their age.

Aruma CEO Dr. Martin Laverty confirmed a similar deal, which he said increased the viability of most of their transferred homes. However, he noted that 10 of Aruma’s government-owned homes have already closed, with residents moving into new, purpose-built accommodation.

Possability is another provider yet to reach a new workplace agreement and has not commented on its negotiations or the future viability of its services.

The Road Ahead: Potential Solutions and New Challenges

The federal government is currently evaluating a policy known as “Supported Independent Living (SIL) commissioning.” This would see the government take a more active role in how SIL services are planned, funded, delivered, and monitored for NDIS participants.

Melba CEO Melissa Webster believes SIL commissioning could offer a vital lifeline for these transferred homes, ensuring the necessary safeguards and supports for people with more complex needs. She indicated that discussions at both federal and state levels show a commitment to finding solutions for the former Department of Families, Fairness and Housing (DFFH) homes.

However, new challenges loom. Dr. Martin Laverty of Aruma warned that the current NDIS reforms will require every resident to undergo new NDIS eligibility and support needs assessments, with potential cuts to community access supports. He has urged the federal government to consider an exemption or a “light-touch approach” for residents in these transferred homes, sparing them from repeatedly proving their NDIS eligibility.

What This Means for NDIS Participants and Providers

The situation in Victoria highlights the ongoing tensions between NDIS funding realities, legacy agreements, and the commitment to high-quality disability support.

For NDIS Participants and Families: If you live in a transferred home, you may experience changes to your services, particularly transport, and potentially your support plan. Stay informed about any communications from your provider and be prepared for potential NDIS plan reassessments. Advocate for your needs and ensure your plan adequately covers essential supports.
For Disability Service Providers: The pressure to align costs with NDIS funding models is immense. Negotiating sustainable workplace agreements and advocating for appropriate NDIS pricing that reflects the complexity of support needs remain critical for the sector’s long-term viability.

This evolving situation underscores the need for clear communication and collaborative solutions between governments, providers, unions, and most importantly, NDIS participants and their families, to ensure stable and quality support services continue.

Hazel Chen

I work in marketing and communications for NDISLocal, helping connect NDIS participants, families, and providers with clear, useful information about the sector. I'm passionate about making the NDIS easier to understand and navigate, and about giving disability service providers a platform to reach the people who need them. If you'd like to know more about anything covered in this post, or you're a provider interested in being featured, feel free to get in touch.