Minns Government Budget rescues NSW child protection system from looming funding crisis

Wednesday, 13 September 2023

The Minns Labor Government will commit $200 million to ensure thousands of vulnerable kids are kept safe.

The state’s out-of-home care (OOHC) system supports approximately 15,000 vulnerable children who are unable to live safely at home, through foster care, kinship care, and residential care arrangements.

Following the election, the Minns Labor Government discovered a significant budget shortfall within the OOHC system – part of the former government’s $7 billion in unfunded programs.

The Liberals and Nationals left behind an out-of-home-care budget due to run out next April– more than two months before the end of the 2023-24 financial year, which would leave the NSW Government failing to meet its statutory obligations to vulnerable children.

The NSW Labor Government’s Budget will deliver a $200 million rescue package to sustain out-of-home care throughout 2023-24.

The NSW Government is also committing to fixing the broken child protection system in NSW.

Despite the number of children in the OOHC system remaining relatively stable, a series of policy failures by the former government created a spiralling OOHC budget crisis combined with worsening outcomes for vulnerable children and young people.

A recent review into the child protection system found vulnerable children were holed up in motel rooms without enough food or clothing, despite non-government providers being paid more than a million dollars for their care.

Over the three years from 30 June 2020 to 30 June 2023 there has been a tripling in the number of children in expensive emergency arrangements, including hotels and motels, and an increase in the average length of stay for all placement types.

The Minns Labor Government is setting out long-term plans to reform the child protection system and repair the budget, as part of its plan to rebuild essential services we all rely on – and looking after vulnerable kids is an essential service.

And it will be done without privatising essential public assets or imposing an unfair cap on the wages of our essential service workers.

Minister for Families and Communities Kate Washington said:

“The Minns Labor Government inherited a broken child protection system and a massive black hole in the out-of-home care budget.

“It’s shocking that the former government managed to make a mess of the child protection system so badly for young vulnerable children, and for taxpayers too.

“This $200 million rescue package means the state’s most vulnerable kids will be kept safe through foster care, kinship care, and residential care arrangements.

“We are committed to repairing the budget and reforming the child protection system to give children and young people the best chance of a brighter future.”