2 September 2024

NDIS group homes cost $350,000 per person each year and should be phased out, says Grattan Institute

| Oliver Jacques
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student inn wheelchair at school

Group homes for people with disability are not the way to go, says the Grattan Institute. Photo: Region.

Group homes funded under the National Disability Insurance Scheme (NDIS) are costing taxpayers more than $350,000 per person each year despite producing poor outcomes for residents and should, therefore, be phased out, says a leading national think tank.

The Grattan Institute reported that 43,500 Australians with a disability were living in institution-like group homes with four or five others, all of whom were supported by a roster of shift workers. These facilities are costing taxpayers $15 billion a year and are responsible for nearly 40 per cent of the total cost of NDIS, even though they’re not generally a good option for those living in them.

“We know from the royal commission that people in group homes are much more at risk of violence, abuse and neglect,” Sam Bennett of the Grattan Institute said.

“You are living with people that you haven’t chosen to live with, you’ve got lots staff coming in and out … residents also don’t get to choose basic things like what time they get up to have breakfast, what they have on their walls.”

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Under the NDIS, the federal government gives eligible people with disability money to help meet their personal needs via an agreed plan. Mr Bennett said that rather than funding group homes, it would be better to help people live in their own home and have a mix of both formal and informal support.

“We could have foster care-type arrangements to support people with disabilities … that model has worked well in places in Canada,” he said.

The Grattan Institute proposes what it calls individual living arrangements, such as where an adult with NDIS funding lives with a ‘host family’ or ‘host flatmate’ who is not related to them.

Two people standing next to Project Independence sign

Project Independence CEO Michael Claessens (left) says the model of care his organisation provides could be rolled out nationally. Photo: Facebook.

A host might be a couple or an individual who provides companionship and semi-formal support with things like cooking, cleaning, and other household tasks. In exchange, they receive a subsidy for their expenses. Hosts can also receive rental payments directly from the person living in their home.

“Individualised living arrangements can be cheaper than group homes because they tap into semi-formal support, instead of relying solely on rostered, paid support workers,” the Grattan Institute states in their report.

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Michael Claessens, CEO of disability accommodation provider Project Independence, says the model of care they provide could be taken up more widely to achieve the Grattan Institute’s aims.

“We create a village, where people live independently in their own apartment but have a mutual obligation to work with others to collaborate around meals etc in a group setting … support is also available when people need it,” he said.

“It also provides a pathway towards home ownership. We allow residents to slowly build equity in where they live, though they can also choose to rent long-term if they wish.

“It’s not a model for everyone … it’s for those with mild or moderate disabilities, but we find most of our residents are very happy, they are engaged and turnover of residents is very low … it’s scalable and shovel ready.

“We would like to see this model available nationally.”

Mr Bennett said that moving towards individual living arrangements will not only given people with disability a better standard of living, it would also make the NDIS more financially sustainable in the long-run.

The full report Better, safer, more sustainable: How to reform NDIS housing and support is available from the Grattan Institute.

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I would have to say in regards to project independence when the ceo says it’s for people with mild to moderate intellectual disabilities that’s not even true there are residents who have serve intellectual disabilities an in regards to turnover of residents is very low this is not true.

It’s now becoming a high turnover of residents and it’s a toxic place to live in.

A number of the former PI residents are now living in amazing supportive accommodation and non supportive accommodation.

I would not recommend anyone to live at project independence

Karen Johnson10:36 pm 04 Sep 24

Everything to do with NDIS is over priced.
My partner is a tetraplegic and as soon as we say NDIS things are dearer.
He lives at home with us and what the companies charge compared to the pay rate for staff is ridiculous.
I dont ever want him to live in a group home etc.

Not everybody copes with group stuff. My family member doesn’t have much informal support as we have our own health issues and other obligations. She has a moderate Intellectual disability, asd and psychosocial issues so doesn’t cope with group situations very well. Currently she resides in a sil with one other resident and whilst not perfect it does work well for her.
The model proposed seems to me to create potential for more risk of violence and imposes conformity to group situations which not everyonecopes with. When will Australia learn that just because a model works in one country this doesn’t translate to success here. I personally think whilst it may work for some it wouldn’t work for people like my family member.

bev hutchinson9:57 am 04 Sep 24

It doesn’t cost $350,000 per place in a group home at all. We ARE being charged that however because the public service has continued to pay exhortitant and unjustified rents etc. This is what the public service do time and again.

Merrilyn Stanger - Rodgers8:37 pm 03 Sep 24

As an NDIS approved participant (mental health)
, extreme disappointment with the services I can access , the ones I can not yet as a person turned life around post trauma , why not take on board my asstore in knowledge of what gets mind body to release trauma .
Amateurs running the show ? More input from recipients ! Don’t waste money

Damien Clarke7:56 pm 03 Sep 24

Is this a another proposal to reduce government expenditure on NDIS?

Group Homes is probably a good idea to support people with disabilities. However, $350k per annum is amazing cost. $15b is even worse. I would start managing and reviewing those operations as a priority. There must be a cap on spending. I was invited by so many developers to invest into ndis housing and promised millions of dollars. I wonder why?

claudine Agathe4:42 pm 03 Sep 24

I have a son on ndis with cognitive disability but intellectually okay with support. He has mostly needs surrounding hygiene. He can’t use normal size toilet. Adding a toilet to our property would cost $20k but they won’t support that. However,
We already have misused around $40k on our plan by trying social workers who can’t help. Now we have better social workers. I think the issue with NDIS is they will fund fictitious items such as housing to profit the real estate industry. They will fund unqualified social workers to make the industry work. But it’s very difficult for families to access real help. It doesn’t make sense. Also it doesn’t make sense how some people with no functional disability can access NDIS. The system is not stable, I believe. Some people havre lost their lives already due to lack of support.

Avery de Brouwer-Leslie1:13 am 05 Sep 24

You need a specialist support coordinator, plan managed for flexibility and an OT report for a housing package. I’d get 3 plumbing quotes. We are now installing toilets with silicone.
Have a look on YouTube you could save .money doing
Some yourself

Helen Pitcher12:53 pm 03 Sep 24

My son is in his own unit in a cluster of units. Support workers are available 24/7. He is the happiest he has been. I think group homes can be good if run properly, but matching housemates is crucial. My son has been assaulted by another housemate several times.

claudine Agathe4:43 pm 03 Sep 24

I am sorry to hear your son was assaulted. I wish him all the best. Beautiful Angel. We are in this together.

Lorraine Goodchild5:58 pm 06 Oct 24

Hi Helen…would your son’s unit be in Canberra? I am part of an incorporated association group here in regional Queensland …parents and family members who are trying to establish a cluster of units for our family members but I can’t seem to find others trying to do the same…the options available only seem to be shared accommodation under the same roof…not individual units. I would really like to find a place that has set up this model here. Glad to hear it’s working out for your son.

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