5 April 2013 Media Statement
Hon Paula Bennett
Minister for Social Development
Associate Minister of Housing
Funding improvements for out of school care
Social Development Minister Paula Bennett has announced changes to the funding system for Out of School Care (OSCAR) programmes.
“After consultation with and advice from the sector, we’re improving funding so it’s fair and equitable and targeting priority communities for more services.”
The current ‘deficit-based’ funding system has created a perverse incentive as providers get more funding when operating at a loss which can encourage inefficient practise.
“It just didn’t make sense to continue that.”
Following consultation with the sector, an OSCAR sector Steering Group helped design the new system, with those changes consulted on as well.
“I’d like to thank the steering group for their leadership and clear recommendations, which we are going ahead with,” Mrs Bennett said.
Accepted recommendations include:
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Linking grants to number of children in programmes
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Targeting low-income and isolated communities
“Having a spread of good OSCAR services means sole parents with new work expectations through welfare reforms, have greater child care options.”
There are no changes to the OSCAR subsidies available to eligible parents.
To help providers adapt to the new system, transitional funding will provide support over the next three years. New contracts take effect from 1 July.
Media Contacts: Sia Aston 04 817 8238 or 021 677729
Pip Rawson 04 817 6904 or 021 473152
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