Child and Family Services funding reform

25 June 2018
Adult holding baby's hand
From 1 October 2018, the funding model for some family services activities will change

Currently, the Department of Health and Human Services funds child and family services through program activities. The new funding model is based on seven service delivery functions which will enable providers to have more flexibility to shape support around the needs of vulnerable children and families.

The new funding model comprises the following seven service delivery functions:

  • Intake and access

  • Individual, child and family support

  • Placement support

  • Flexible funding

  • Specialised interventions

  • Staffed accommodation

  • System enablers

A number of sub-activities will sit below each of these, with further detail about the sub-activities to be provided prior to October 2018.

This new funding model supports, the Roadmap for Reform: strong families, safe children (Roadmap) and Aboriginal self-determination and self-management.

In-scope activities for family services

Transition of current activities to the new funding model will be phased. The first phase commences on 1 October 2018, when the following six funded activities will be funded through the new activity structure:

  1. 31260* Aboriginal Community Controlled Organisations – Family and Community Services

  2. 31264 Cradle to Kinder (Ante and postnatal support)

  3. 31245 Integrated Family Services

  4. 31246 Integrated Family Services – Indigenous

  5. 31218* Placement Prevention Programs

  6. 31262 Stronger Families

*On 1 October 2018, only partial funding (the ‘family services’ component) for Aboriginal Community Controlled Organisations – Family and Community Services (31260) and Placement Prevention Programs (31218) will be transitioned to the new funding model. The remainder (the ‘care services’ component) will be transitioned in future stages.

This new activity structure will not reduce the amount of funding paid to providers for the in-scope family services activities under their current Service Agreement. The number of targets may look different but there will be no significant increase or decrease in the number of targets.

Funding under any future service agreement will be determined in accordance with the department’s usual processes.

Communication with providers

The department will email a fact sheet to organisations delivering the in-scope activities mentioned above on 28 June 2018 explaining the new funding model.

Prior to 1 October 2018, further information about targets and monitoring for in-scope activities will be sent out to each affected organisation.

The department have, and will continue to hold, regular forums and meetings such as the Roadmap Implementation Ministerial Advisory Group Pricing and Funding Reference Group in order to discuss the transition to the new funding model. Workshop details will be updated through the Funded Agency Channel as they become available.

Local Engagement Officers will also be able to provide up-to-date information throughout the transition.

The department looks forward to continuing to partner with organisations to transform the child and family system in Victoria and deliver on our shared commitment to improve outcomes for children, young people and families.