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Supporting Kiwis through these tough times

Ensuring vulnerable Kiwis are able to access Building Financial Capability (BFC) services at a time when they most need it.

Government is investing $25.2 million over the next two years to support BFC services in being able to respond to the increasing needs of individuals and families/whānau that may need support as a result of the economic impacts of COVID-19.

In addition to existing pressures on services, a significant increase in demand for BFC services is expected in the economic downturn from COVID-19. This will see increased levels of unemployment and loss of earnings. Households are expected to face sudden and significant financial hardship from living on a much-reduced income.

Why do we need to make changes?

The investment over two years recognises this period as being especially critical to ensure services are more sustainable as well as increasing the number of staff with the necessary skills to meet the demand during this time.

We’re looking at opportunities to use this funding in a way that increases immediate support for service provision and also invests in long term workforce capability to ensure Kiwis accessing these important services get the best possible outcomes.

For more information

If you have any questions regarding these changes, please contact us by email at Financial_Capability@msd.govt.nz

FAQ

How long is the increased funding available for?

The funding is for two years (until June 2022) and is allocated across the two years as follows:

Costs (operating) $m

2020/21

2021/22

Total

11.402

13.810

25.212

What services will be affected by the changes in funding rates:

The following services will have their funding rates updated:

  • Financial Mentoring – one-to-one support empowering people to achieve their goals, including reducing debt and connecting to support they may need.
  • MoneyMates–peer-led support for people to learn and share together as a group.
  • Building Financial Capability Plus (Kahukura) service – intensive support for people who are hard to reach or with complex needs.
  • Micro-finance services – affordable credit to people at risk of unsustainable debt and hardship.

When will the funding increases take effect from?

Funding increases will be applied to your contract from October 2020 when you’ll receive a contract variation letter. However, the increases will be backdated to 1 July 2020.

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