‘Really worrying’: Homelessness groups face $20 million a year funding shortfall

We’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.

Advertisement

This was published 2 years ago

‘Really worrying’: Homelessness groups face $20 million a year funding shortfall

By Jewel Topsfield

Homelessness services say frontline staff will be axed, more people will sleep rough and more women fleeing family violence will be forced to live out of their cars if they lose more than $20 million a year in federal funding from July.

The Victorian government has written to the state’s homelessness organisations, warning the federal budget did not renew part of their funding beyond June 30.

Launch Housing CEO Bevan Warner is facing a loss of $2.47 million in funding next financial year.

Launch Housing CEO Bevan Warner is facing a loss of $2.47 million in funding next financial year.Credit: Scott McNaughton

“A loss of Commonwealth … funding would mean a funding reduction to Victoria of $100 million over four years ($23.2 million in 2021-22),” the letter from state government agency Homes Victoria says.

Bevan Warner, chief executive of Launch Housing, which would lose about $2.47 million next financial year, said he would have to shed 25 to 30 frontline staff if the funding was not renewed.

“This would affect every part of our service including crisis service and definitely mean less help or no help for thousands of Victorians,” he said.

Loading

“It’s very troubling, in a time of peak demand, that we would be reducing services in the homeless sector, particularly for women and children who are exiting family violence and unsure about where they are going to be sleeping tonight. We know that two-thirds of people approaching us ... come with those sorts of problems, so it’s really worrying.”

Social and community workers won a pay rise of up to 45 per cent in 2012 to recognise that the sector’s primarily female workforce had historically been poorly paid because of their gender.

The Equal Remuneration Order – which covers workers from a broad range of services including disability, crisis counselling and family violence support – was phased in annually until December 2020.

Advertisement

Successive federal governments helped fund the increased wage costs of the equal pay order for a nine-year transition period until June 2021.

In last year’s budget the Morrison government committed $132 million from July 2021 to continue equal pay order funding for providers of community services such as financial counselling, family violence, disability advocacy and family mental health support.

However, homelessness services – which are funded separately in partnership with the states – did not have funding allocated in the federal budget for the equal pay order after June 30.

“States and territories are responsible for homelessness services and I welcome the commitment of states such as WA in ensuring the frontlines services they fund have the resources they need to meet the requirements of the Equal Remuneration Order decision,” Minister for Families and Social Services Anne Ruston said.

“Any suggestion there has been a cut to funding for housing and homelessness is completely false with the Commonwealth providing about $1.6 billion to states and territories each year under the five-year National Housing and Homelessness Agreement, which was agreed to in 2018. There have been no changes to that agreement.”

Victorian Housing Minister Richard Wynne last month wrote to Senator Ruston saying there was no basis for the Commonwealth not to maintain equal pay order funding for homelessness services as it had with other community services.

Victorian Housing Minister Richard Wynne.

Victorian Housing Minister Richard Wynne.Credit: Simon Schluter

He said the loss of federal funding would cost more than 100 jobs in Victoria and the loss of vital support for around 6700 people at risk of homelessness.

"This is now the cost of delivering homelessness services, it has always been a shared responsibility between the Commonwealth and the states and they need to continue to fulfill their standing commitment," Mr Wynne said.

Bronwyn Pike, the chief executive officer of Uniting Vic.Tas, which provides homelessness support services and housing, was told she would lose $1.199 million in 2021-22 if the funding was not renewed.

“It means that people will have to wait longer for services,” Ms Pike said. “It’ll be more people sleeping on the streets, more mothers who are sleeping with their children in their cars after fleeing family violence.”

McAuley Community Services for Women, which supports women and children who have faced family violence and homelessness, believes it will lose about $265,000 of its government funding.

Uniting Vic.Tas CEO Bronwyn Pike warns  there will be more people sleeping in the streets if federal funding is not renewed.

Uniting Vic.Tas CEO Bronwyn Pike warns there will be more people sleeping in the streets if federal funding is not renewed. Credit: Justin McManus

“It would be equivalent to around two and a half positions. Each position works with around 10 women, so that’s in excess of 20 women that we wouldn’t be able to see,” said chief executive officer Jocelyn Bignold.

“Already, homelessness services are turning away women and children and already, in Victoria particularly, a main driver of homelessness is family violence. This loss of funding is really penalising women and children who have to flee through no fault of their own.”

Senator Ruston said she was having discussions with the states and territories to ensure women escaping violence had access to the support they needed.

“The Morrison government has made a historic commitment to support domestic and family violence services which includes $60 million to build 700 new safe places for women and children escaping domestic violence at refuges and shelters, as well as the additional $130 million we provided to states and territories for frontline services dealing with increased demand during the pandemic,” she said.

Catch all the day’s headlines

At the end of each day, we’ll send you the most important breaking news headlines, evening entertainment ideas and a long read to enjoy.  Sign up here.

Most Viewed in National

Loading