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Budget 2024

30 May 2024.

Budget 2024 sets out the Government’s programme for delivering on its priorities, including building a strong economy, reining in public sector spending and supporting job growth.

Budget 2024 focuses on fiscal responsibility and balancing the Government’s books, as well as priority spending initiatives. The Government also expects that savings initiatives won’t be at the expense of delivering frontline services.

MSD’s funding in Budget 2024 is focused on meeting two of the Government’s nine targets for the public service:

  • 75 percent fewer households in emergency housing by 2030 (joint with the Ministry of Housing and Urban Development), and
  • reducing the number of people receiving Jobseeker Support by 50,000 to 140,000 by 2030

MSD was also assigned a savings target of 6.5% on eligible baseline.

MSD’s work with its clients will be affected by a number of Budget initiatives being led by other agencies.

Historic claims

MSD’s work on resolving historic claims of abuse in the care of the state will continue with new time-limited funding for 2024/26 which will allow MSD to assess another 2,000 claims.

MSD’s savings initiatives

MSD has a range of cost saving measures in place such as reducing spending on contractors and consultants, reducing travel, accommodation and consumables costs, voluntary redundancy and fixed-term roles coming to an end, as well as a change process that is now underway.

Savings are also being achieved by not continuing to fund a number of initiatives after time-limited funding ends unless they fit with the Government’s priorities.

Savings also accrue from a forecast of fewer people in emergency housing. This is as a result of fewer people expected to enter emergency housing due to initiatives to tighten eligibility, and more people leaving emergency housing as a result of being supported to find sustainable housing options.

From 2026, all housing contributions from boarders will be recognised when calculating entitlement to housing subsidies. Currently, board payments are only considered if a householder has three or more boarders.

The Government has decided to reverse the decision of the previous Government to develop a wage supplement to replace the minimum wage exemption scheme, so this work will not continue.

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