This paper asks Cabinet’s to provide out-of-cycle funding for external providers of children's services until 31 December 2025. The amount requested is $23.655 million, to be used in the first 6 months of the 2025/26 financial year.
This request follows the government’s directive for us to:
- extend contracts that were expected to end by 30 June 2025
- defer our annual review of contracted services and service changes until 31 December 2025.
Background to our request
In 2023/24, we undertook a full review of how we use our funds. This was to ensure we provide the most ideal and effective services with our funding.
This result was that some service provider contracts were reduced or ended in 2024/25. However, some providers raised concerns about the impact on the delivery of prevention and support services.
In January 2025, Hon Karen Chhour, Minister for Children, asked us to pause our review until 31 December 2025. She also asked us to extend:
- existing contracts for providers who did not have a current contract
- contracts coming to an end by 30 June 2025.
This pause allowed time so we could design and implement a refined commissioning approach. This has been created in partnership with the Social Investment Agency.
How we made provider contract decisions
In 2023/24, we looked for ways to be efficient with all of our funding. Part of this work included a review of social services and contracts.
To review this, we considered:
- use of services
- need of services in each region
- evidence of the impact for children and communities
- how well services aligned with our core purpose.