Disability provider forced to cut programs with NDIS funding shortfall

Woden Community Service will wind up direct NDIS support services to people with disabilities by the end of May.

It said the decision will impact 120 clients and 30 staff members.

The centre has continually recorded financial losses year-after-year, chief executive officer Jenny Kitchin said.

This year, the board decided the organisation could not longer subsidise the direct support programs.

"Direct support service to people has just become increasingly difficult to remain financially sustainable," Ms Kitchin said.

"The funding that we receive from the NDIS... just cannot cover some of our most basic costs."

The organisation itself pays for infrastructure costs such as training, supervisions and systems compliance, Ms Kithin said.

"We've continued to invest in all of those things, but that comes at a cost to us as an organisation," she said.

Her organisation is not alone in struggling with NDIS funding, Ms Kitchen said.

In 2022, 59 per cent of providers said they were concerned they cannot continue to provide NDIS services at current prices, according to a pulse survey.

The National Disability Insurance Scheme was implemented nationwide in 2020.

Previously, Woden Community Services funded programs through grants, Ms Kitchin said.

"In a block grant fund, you can make your own decisions about how you pay your staff and the amount of work that you can do with the fee for income," she said.

"There was the ability to negotiate with government... and there weren't cap fees for certain amounts."

The benefit of the NDIS is that people have their own plans, and can choose their own provider, Ms Kitchin said.

"Unfortunately, the costing model around the direct support worker services is just not sustainable," she said.

The programs which are being defunded are mostly one-to-one services.

Ms Kitchin said 60 per cent of the organisation's clients have mental health issues.

"That requires particular expertise that we've built up over the years," she said.

"That's a particular sadness for us, that we've been trying very hard to keep in the service arena for that particular group."

Woden Community Services is working with staff in the cancelled programs to find them employment within the organisation, the chief executive officer said.

In the 2022-23 financial year, the National Disability Insurance Scheme cost the government $35 billion.

It is on track to exceed $50 billion by 2025/26.

The Labor government has pledged to reduce the costs growth of the scheme by 8 per cent by July 2026.

A 2023 review into the National Disability Insurance Scheme made 26 recommendations to try and ensure it is financially sustainable