Pre-Budget 2024 announcements; impacts from budget cuts for government agencies

Fri 24 May 2024

In the lead up to releasing Budget 2024, the government has announced funding related to family violence and sexual violence. Media has also highlighted potential impacts from budget cuts to government agencies.

close up of a person's hands stacking coins

Pre-Budget 2024 Announcements

The Government will release Budget 2024 on 30 May 2024. In the lead up, the Government has made funding announcements.

Finance Minister Nicola Willis made announcements related to the Government's work on social investment and plans to establish:

Social Investment Agency - a standalone central agency effective from 1 July that will lead the development of social investment across Government
Social Investment Fund - managed by the Social Investment Agency to "...directly commission outcomes for vulnerable New Zealanders, and to work with community, non-government-organisations (NGOs) and iwi providers."
Social Investment Board - a ministerial advisory committee to provide guidance on social investment, and a group of Social Investment Ministers to support the Finance Minister on the social investment approach across the system.

In a pre-budget speech, Minister Willis also talked about the Government's Budget priorities, saying:

"Our Budget will prioritise targeted new spending for the essential frontline services you rely on. You can expect a significant funding boost for the health system and targeted new investment in other essential frontline services including education, disability services and Police."

In his pre-budget speech, Prime Minister Christopher Luxon said "New Zealanders voted for us last year to do three things – rebuild the economy, restore law and order, and deliver better public services."

Corrections Minister Mark Mitchell announced $1.9 billion support the Government's work on law and order. This funding will support increasing the number of beds at Waikeria prison, additional Corrections and Police officers and extension of rehabilitation programmes for people who are on remand. Minister Mitchell previously announced in March 2024 an amendment paper to the Corrections Amendment bill saying "This will strengthen the requirement for Corrections to provide all remand convicted prisoners with offence-based rehabilitation, including rehabilitation programmes targeted towards violent and sexual offenders." (emphasis added). See our related news story for more information about this legislative reform.

While not an official pre-Budget announcement, the 17 May 2024 Family Violence Sexual Violence Update from the Ministry of Social Development (MSD) announced that MSD contracts for family violence networks would be extended to June 2025. The current contracts were due to expire at the end of June 2024. The family violence networks were first formally funded by government in 2003 through the implementation of the 2001 Te Rito strategy.

Impacts to government agencies from budget cuts

After coming into office, the Government set up a programme to identify $1.5 billion of savings across government agencies. Central government agencies were asked to identify either 6.5% or 7.5% savings. In her pre-budget speech, Minister Willis said:

"I am confirming today that we have met that savings target.

It’s taken a lot of work to get there. We set every government agency its own target and tasked Chief Executives with putting forward proposals they thought made sense and that could be delivered without compromising quality public services. We then reviewed their proposals line by line."

Media, the PSA (Public Service Association Te Pūkenga Here Tikanga Mahi) and advocates have raised concerns about the potential impact to government programmes and services, based on the proposed changes to achieve the target savings. Many of the proposed cuts relate to the work of the family violence and sexual violence sector:

Oranga Tamariki: The proposed changes at Oranga Tamariki includes a total reduction of 447 roles. PSA has reported this includes 21 specialist Māori roles. One News reported proposed cuts also include disestablishing the Oranga Tamariki Safety of Children in Care team, the team that reports on children abused while in care, and reviews how the agency complies with care regulations. One News also reported the proposed cuts would include "...the ministry's international child protection team, which helped care for unaccompanied child refugees and investigate complex exploitation cases." The NZ Herald reported some of the overarching changes to the structure of Oranga Tamariki including potential changes to the leadership team, the residences and community homes team, and the tamariki and whānau service. The Post has reported that the proposed changes also include the legal division at Oranga Tamariki. RNZ reported that the hiring freeze while the restructure takes place means Oranga Tamariki is without lawyers in Gisborne and Southland, who often work with children in the youth and family courts. RNZ also reported the proposed cuts include the team that look after critical records for children in state care.

ACC: PSA has reported that potential cuts to ACC include the Injury Prevention teams, which includes people who work on sexual violence prevention, and specialist roles dedicated to helping Māori avoid injury and sexual violence. According to PSA, the specialist roles at risk are part of ACC's Oranga Whakapapa work which includes a healthy relationships programme that develops mana-enhancing programmes to address the causes of violence. Janice Panoho Te Kaihautū Māori for the Public Service Association Te Pūkenga Here Tikanga Mahi said "...eliminating sexual violence in Māori communities can only be achieved through a te ao Māori lens, applying our knowledge and working closely with iwi and whānau. This comes on top of ACC proposing to remove another specialist sexual violence role."

Ministry of Social Development (MSD): PSA reported that potential cuts to MSD could see a loss of 700 roles. This includes the Strategy and Insights team, who research and evaluate how MSD is performing and how MSD is delivering support to people. It also includes roles in the digital transformation project Te Pae Tawhiti, which is working to simplify processes and help people better access MSD services online. Earlier, PSA reported budget cuts at MSD would also affect the Māori Communities and Partnerships team, and human resources, policy, strategy and communications teams.

Te Tari Taiwhenua | Department of Internal Affairs: PSA reported that budget cuts to Te Tari Taiwhenua | Department of Internal Affairs include 41 roles proposed to go from teams dealing with digital harm, child exploitation, money laundering, counter terrorism and other regulatory roles.

Disability: In March 2024, Whaikaha the Ministry for Disabled People announced changes to purchasing rules for how people can use disability support funding. The changes were made to address shortfall in Whaikaha's current budget. Disability Issues Minister Louise Upston has since announced a review into disability support services. The Disabled Persons Assembly NZ has published an open letter signed by 52 organisations calling on the government to fully reverse the 18 March disability support restrictions and ensure disabled people have the resources and the flexibility needed to thrive.

Also see the PSA media releases for updates on budget cuts to other government agencies, including:

Many of the proposed changes are still being refined and are not yet finalised. See additional information in the related media below. Also see the related media below for responses from advocates and responses to the proposed cuts to Oranga Tamariki from Minister for Children Karen Chhour.

Uncertainty for non-government organisations(NGOs)

The New Zealand Council of Christian Social Services issued a media release highlighting "...that 400 providers with contracts [with Oranga Tamariki] ending June 2024 will not find out if these are to be renewed until after the Budget is announced – but not to have their hopes up either way." The Otago Daily Times reported that NGOs in the South Island are also worried about the future of the government funding they receive. Stuff has reported that other non-government organisations are concerned about reduced funding from government agencies. The article also highlighted that the Mental Health Foundation is looking at reducing staff because government funding has not kept up with rising costs.

Related news

Finance Minister Nicola Willis announced that the time-limited funding for the Pay Equity Taskforce will not be renewed and that the Public Service Commission is now consulting with staff on the proposed disestablishment of the Pay Equity Taskforce. The funding for the taskforce ends 30 June 2024. The New Zealand Council of Trade Unions | Te Kauae Kaimahi has issued a statement calling on the Government to reverse the decision to disestablish the Pay Equity Taskforce.

Minister of Internal Affairs Brooke van Velden announced that Te Tari Taiwhenua | Department of Internal Affairs would not be progressing further work on the Safer Online Services and Media Platforms. The purpose of this work was to improve the regulation of online services and media platforms to improve consumer safety for all New Zealanders, with a particular focus on minimising content harms for children and young people, and including online child exploitation and other forms of online violence. In response, Vivien Maidaborn, tumu whakarae/chief executive of InternetNZ, wrote an op ed on how internet regulation is urgently needed.

Dozens more jobs axed at Department of Internal Affairs, Stuff, 19.06.2024

Internal Affairs job cuts will lead to more Kiwis being scammed online, union says, RNZ, 19.06.2024

Govt cuts will expose Kiwi to more extremist content, scams and sexual harm, PSA media release, 19.06.2024

CHAT: Minister refuses to guarantee jobs in child exploitation area, Duncan Garner, 19.06.2024

30,000 websites to be blocked over child sex abuse material, RNZ, 19.06.2024

DIA expected to reduce child exploitation yet job cuts loom - 19th June 2024, Duncan Garner, 19.06.2024

Improvements to stopping Digital Child Exploitation, Beehive media release, 18.06.2024

Former DIA worker warns ‘thousands’ of children could continue to be exploited under department cuts, Stuff, 16.06.2024

Calls for Oranga Tamariki to keep Office of Chief Social Worker, Newsroom, 12.06.2024

Ministry of Justice outlines change proposal, Ministry of Justice news, 07.06.2024

Public sector cuts: Oranga Tamariki spends more than $800k on contractors and consultants on job-cut proposal, NZ Herald, 30.05.2024

Effect of Govt cuts on disabled people ‘cruel’ – report, Newsroom, 29.05.2024