CHB budget service seeks to top up funding shortfall

The CHB Budget Service may have to look at reducing staff hours due to a recent funding cut.

The Central Hawke's Bay Budget Service has lost almost half of its Ministry of Social Development (MSD) funding, resulting in the loss of a staff member and possibly reduced staff hours.

Co-ordinator Carmel Thompson said the ministry funded about 70 per cent of the Waipukurau-based service's total expenditure, the remaining 30 per cent came from grants, such as Lotto and the Community Organisation Grants Scheme.

"MSD has done a redesign of budgeting services and the result was that the rural areas lost the majority of the funding," she said.

"This went to South Auckland as they feel this is where the greater need is."

Unless further grant applications were successful, Ms Thompson said the new funding contract would enable the service to assist only 150 clients in the current financial year, down from more than 450 the year before.

In the last financial year clients came to the service with more than $4 million of debt and $500,000 in arrears, she said.

Assistance had included delivering 115 education programmes for 796 people, helping seven clients apply for a summary instalment order, eight clients apply for a no-asset procedure and 14 clients apply for KiwiSaver hardship.

"It is always challenging trying to balance workloads with the resources available, especially as client cases are getting more complex and therefore more time consuming," Ms Thompson said.

Employment in Central Hawke's Bay was seasonal, such as orchards, shearing and meat processing, and with irregular incomes these workers found it hard to budget.

"From feedback given by our clients we know we make a big difference to their lives.

"I believe that budgeting is an essential core service. If a person's finances are in order we have less family violence, mental health, addiction issues, crimes and potentially suicides."

She said the service had lost a valuable staff member and their expertise because of the funding cut, and the costs were being re-evaluated with the possibility of a further reduction of staff hours.

"While we are applying to other sources to make up the shortfall we are well aware that many other worthy community organisations are also applying for the limited funds available."