NDIS gap leaves thousands with no psychosocial support

People living with significant psychosocial disabilities are left without support and at risk of homelessness and hospitalisation, despite billions of dollars spent on the National Disability Insurance Scheme (NDIS).
Psychosocial disability refers to the functional impairment that people may experience as a result of mental health problems and may cause them to have difficulty securing and keeping a job, establishing and maintaining friendships and relationships, or managing finances.
It can be debilitating and most importantly people are entitled to NDIS support.
But many of those who need help are not eligible for the program and there are few alternatives.
Nearly 130,000 adults with the greatest needs receive no support from the NDIS or mental health system, making them more likely to experience homelessness, be hospitalized or have their needs escalate.
More than $5.8 billion of the NDIS is spent supporting 66,000 people with psychosocial disabilities; that’s about a third of all government spending on mental health.
With the federal government willing to reduce annual growth to five to six percent, the cost of the entire plan is estimated to rise to $50 billion by 2025/26, a figure higher than the annual Medicare bill.
But a Grattan Institute report found that redirecting some NDIS funding to ensure Australians can access help whether they are on the program or not would help close the current gap in meeting the needs of people with severe psychosocial disabilities.
The report’s lead author, Sam Bennett, said access to support for a person with psychosocial needs who was deemed ineligible for the NDIS was a postcode lottery.
“The services that would give you the best chance for a better life are either patchy, underfunded, or non-existent,” he said.
“Rebalancing the system so that stronger recovery-focused supports are available within and outside the NDIS will transform the lives of Australians with psychosocial disabilities and enable better use of existing funding.”
The report makes several recommendations, including the establishment of a National Psychosocial Disability Program outside the NDIS, for which federal, state and territory governments would be responsible.
Dr. “Together, these reforms will create a fairer and more effective system to better meet the needs of Australians with psychosocial disabilities, all within existing NDIS budget limits,” Bennett said.


