Funding for eight Disability Employment Services providers has been discontinued by the Labor Government, due to poor quality and lack of achieving long-term outcomes. Around 15,500 people living with disability will be affected by the closures, that followed an overhaul of the DES program.
Social Services Minister Amanda Rishworth said the assessment ensures only the most effective DES providers continue to receive Commonwealth funding. “Poorly performing DES providers were given every opportunity to put measures in place to improve and were aware of the formal review process.”
A spokesperson from the minister’s office told F2L a list of the affected providers will be released later this week.
However, there is a downside to the decision to defund that will see inevitable service dislocation and a loss of existing relationships that often span decades. Also, skilled staff will be lost to the DES industry as unemployment sees workers drift away to other less demanding roles, according to Nova Employment CEO, Martin Wren.
“If you believe that People with Disabilities (PwD) deserve services from effective organisations committed to delivering a quality product, then the news that underperforming DES are to lose their contracts will come as welcome news,” he told F2L. “Losing poor performers is in the interests of PwD, their significant others, their employers and the community.”
Wren said DES Star Ratings, the system that measures the relative success of providers in achieving outcomes for job seekers taking part in the program is flawed, failing to provide pertinent information in an easy-to-understand format that could genuinely inform consumer choice.” That said, the same measurement tool applies to all providers and to that extent allows apples against apples comparisons.”
Wren said there has been plenty of time for service providers to raise their game. “The present employment services contract flagged the fact that an acceptable level of performance was expected, and the ratings system in place would allow service providers to see their position relative to local and national results. The Star Ratings are usually published quarterly so that PwD, the public and providers could make comparisons when choosing a service that best meet their needs,” he said.
Notice was given that midterm in the current contract a review was to be undertaken and failure to achieve three stars for at least one ratings period could mean a providers contract would be subject to review.
“Following years of notice those services that could not reach average performance have now been reviewed, found wanting and in some instances have lost their contracts as a result.”
But despite the staff dislocation, giving greater opportunities to organisations that find more jobs in roles that last longer has to be a good thing, Wren said.
To support participants through the transition to a new provider and ensure as little disruption as possible, mutual obligations for those 15,500 impacted will be suspended from August 22 to October 23, 2022. DES participants who need to transition to new providers will be provided support and will be contacted by the Department.
The decision followed concerns highlighted by the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability.