New opportunity: Support Coordination and employment

In the latest Pricing Arrangements and Price Limits document, the NDIA decided to maintain the existing price limit for Level 2 Support Coordination (despite the evidence they received about the actual cost of delivering high-quality support - don't get me started!). Amidst the disappointment, you may have missed the new Support Coordination line item under the capacity building support category - ‘Finding and Keeping a Job’.

It strikes me as an opportunity too good to miss; a chance for participants to get support to navigate the complex employment landscape and take their rightful place in the workforce, for the NDIS to finally move the needle on employment outcomes and for the Support Coordination sector to show the value of their service with measurable outcomes.

Employing people with disability isn't just about doing the right thing - it also has the potential to have a significant impact. For instance, back in 2011, Deloitte Australia published a report that indicated boosting employment rates for people with a disability in Australia by one-third could increase Australia's GDP by a whopping $43 billion over a decade. It's not just about numbers, though. For individuals, having a job means a pathway out of poverty, financial independence and a sense of pride. On a broader scale, it promotes diversity and inclusivity, challenges stereotypes and makes society fairer. Businesses benefit, too, with increased innovation, a wider talent pool, and happier, more committed employees.

Employment of NDIS participants - stagnant statistics

ABS Statistics indicate that in 2018, the estimated labour force participation rate for people with disability was 53.4%, compared to 84.1% for people without disability.

Regarding NDIS participants specifically, the most recent NDIS report on employment outcomes is dated 31 December 2022, but, oddly, contains data for June 2023 (I'm still trying to work that out). It shows little progress has been made in employment outcomes. The employment rates for participants have hovered around 20%, the same as the baseline. This underscores the urgent need for improved employment outcomes for NDIS participants.

Overall, the report shows that the NDIS has hardly had any impact on participant employment outcomes, which needs to be rectified if Australia is to progress in its goals for "employment and financial security" for people with a disability under the Australian Disability Strategy.

Support Coordination: An opportunity and call to arms

This is an urgent call to action. In the past, the NDIA has questioned the value of Support Coordination, as evidenced by their decision to freeze the price cap over the last five years. Now, with the recent addition of a new support item for Support Coordination under ‘Finding and Keeping a Job’, we have a unique opportunity. Access to this funding allows Support Coordinators to transform one of the most unsuccessful areas of the NDIS - employment.

The NDIS data for funding under ‘Finding and Keeping a Job’ for Q3 FY23/24, indicates a small but relatively untapped market, with funding immediately available.

Between July - December 2023, 4% of participants (26,151) had funding allocated to ‘Finding and Keeping a Job’. Overall, $168,126,372 was allocated under this support category, with an average of $6,429 per person. Only 37% of the funds allocated were spent, leaving $105,919,614 unspent. For all other NDIS support types, funding utilisation sits at 78%. This is a significant opportunity to tap into unspent funds by providing the right support.

In addition to low funding utilisation, there is a high provider concentration, meaning a large percentage of payments go to a small number of providers. Under ‘Finding and Keeping a Job,’ 24% of payments go to the top 10 providers, compared with 6% of payments to the top 10 providers across all NDIS support types. The data also shows that only 94 active providers were being paid from funding under this category over the previous six months. Therefore, the provider market for this support is characterised by relatively low and slow-growing competition from few providers, with a significant proportion of funds unspent and an opportunity ripe for new providers.

On average, participants with funding allocated under ‘Finding and Keeping a Job’ are leaving $4,029 unspent in this Support Category. This equates, on average, to 40 hours of Level 2 Coordination of Support at $100.14 per hour. This figure varies by age group, for example:

• Participants aged 15-18 years leave an average of $5,686 or 57 hours of Coordination of Support assistance, unspent
• those aged 19-24 years leave an average of $4,647, or 46 hours of Coordination of Support assistance, unspent
• those aged 25-34 years leave an average of $1,745, or 17 hours of Coordination of Support, assistance unspent.

The critical point here is that this underutilised funding represents an opportunity for participants to work towards their employment goals with the support from a trusted and experienced Support Coordinator. As the NDIA outlines in the most recent edition of the PAPL, "A Support Coordinator who has an existing relationship with a participant can contribute to employment success by ensuring the voice of the participant is heard in choosing employment options, helping a participant to understand their obligations to an employer and their new workplace and coordinating supporting services to facilitate their ongoing employment."

Skills a Support Coordinator will need

The employment landscape for people with a disability is complex and support to navigate it requires specialised skills, knowledge and networks. To take advantage of this opportunity, a Support Coordinator would need extensive knowledge and robust networks. Here are some specific areas that Support Coordinators looking to provide this support need to upskill:

• The employment landscape - knowledge of key stakeholders, systems and programs in and out of the NDIS. Also, how is the landscape changing and how to support job seekers to navigate this change.
• Different models for supporting employment outcomes - recognising best practice models and how to use an NDIS budget to achieve them.
• Setting participants up for success - skills in developing individualised employment plans for participants and in providing strategies and practices for employees and employers.
• Understanding the upcoming School Leavers Employment Services (SLES) transition - knowing what’s changing, what it means for NDIS plans and how to support participants as the transition rolls out.

This represents a significant opportunity for both participants and Support Coordinators. The current landscape, marked by underutilised funding and a relatively untapped market, provides an ideal environment for innovative, experienced and dedicated Support Coordinators to make a real difference. By leveraging this new opportunity, Support Coordinators can help participants navigate the complex employment landscape, improve employment outcomes and contribute to a more inclusive and diverse workforce. The potential impact on individuals, families, businesses, and society cannot be overstated. By seizing this opportunity, Support Coordinators can demonstrate the true value of their service. Together, we can move the needle on employment for people with disabilities and make a lasting difference.

Want to take a deeper dive into this topic? Check out how workshop where we get into the practical skills a Support Coordinator or Psychosocial Recovery Coach will need to make the most of this opportunity: Developing an employment-related service: CoS and PRC.