why we need a deficit based funding system

Why the NDIS Needs a Deficits-Based Funding System

The National Disability Insurance Scheme (NDIS) was designed to support people with disabilities in accessing the services they need to live more independent lives. However, there’s a growing concern that the current funding structure, which leans heavily on skills-based assessments, isn’t providing the most effective support. What we truly need is a deficits-based funding system—where funding is tied to a person’s limitations, with support focused on building the necessary skills to improve quality of life.

The Flaws of a Skills-Based Funding System

At first glance, a skills-based system may seem logical—funding is allocated based on what people can already do. However, this approach overlooks the reality that many participants need support precisely because of what they cannot do without assistance. It assumes that everyone has a certain baseline of ability, and the funding builds from there, which is simply not the case for many people living with disabilities.

A skills-based system also suggests that improvement is always possible, which is not the goal for everyone. Some individuals require support to maintain their current quality of life, rather than to develop new skills.

Why a Deficits-Based Approach is Essential

A deficits-based funding system acknowledges that support is most effective when it addresses the areas where people need help the most. By focusing on deficits, we ensure that individuals receive the funding necessary to cover the gaps in their abilities, allowing them to live stable and fulfilling lives.

This approach isn’t about labeling people by their limitations—it’s about ensuring that they receive the assistance required to manage daily tasks, maintain independence, and access essential services. Funding based on deficits allows participants to receive consistent support tailored to their actual needs, which can then be supplemented with skills-building initiatives.

Supporting Skills Development Where It’s Needed

While funding should be based on deficits, skill development is still an important aspect of support. Once a person’s core needs are met, resources can then be directed toward helping them improve in areas where growth is possible.

For instance, someone with mobility challenges might initially receive assistance with getting around their home and community. Once these needs are stabilized, additional support could be provided to help them develop strategies or access tools like assistive technology to increase their independence. But again, the foundation must be addressing the person’s current deficits first.

Plan Management Options and Support

One of the key aspects of the NDIS is that participants have options when it comes to how their funding is managed. There are three primary types of plan management, and understanding these options can help individuals ensure their funding is managed in a way that best meets their needs:

• NDIA-Managed: This option is fully managed by the NDIS, where the agency pays providers on behalf of the participant. It’s simple for participants, but it can limit the choice of providers.
• Self-Managed: Participants who self-manage their plans take full control of their funding. This option offers the most flexibility, but also requires a lot of administrative work, including tracking receipts and invoices, and paying providers directly.
• Plan Management (through an Accounting Firm): With this option, an independent plan manager (often an accounting firm) handles the financial aspects of the plan, such as paying invoices and tracking spending, while the participant retains control over which providers they use. It offers a balance between flexibility and ease of management.

In addition to these options, Support Coordinators can be valuable in helping participants navigate their plans. Support coordinators act as a bridge between service providers and the NDIS, helping to manage the complexity of funding and ensuring participants are getting the services they need without the overwhelming burden of managing it all themselves.

A Balanced Funding System

The goal should be to create a balance—one where funding is tied to deficits but with services that foster the development of essential skills. Focusing solely on skills-building without addressing deficits can leave participants without the necessary support to manage their daily lives. By acknowledging both, we can create a system that empowers individuals to live with dignity while giving them the tools they need to improve their independence.