Budget 2022 funding changes for BFC services
This year's Budget continues to provide support for Building Financial Capability (BFC) services with additional investment of $21 million over two years.
This funding provides increased support to providers working with individuals and whānau to improve their financial capability and reduce the risk of experiencing financial hardship.
It will also help to ensure providers can continue to address increased demand in response to the impacts of COVID-19.
This page is primarily for BFC providers, providing specific information on the funding changes they will experience.
BFC Core services
MSD will continue the BFC rate of $170.50 per session into the coming financial year (F23) for the Core services of Financial Mentors and MoneyMates groups.
The volumes of client sessions available will also continue at the current (F22) levels next financial year.
MSD will do this by offering variations to providers' current BFC contracts for F23 and F24.
BFC Plus Kahukura services
BFC Plus contracts for the coming (F23) financial year also receive 2022 Budget support.
Providers employing BFC Plus Kahukura have received increased funding over the past two financial years. Four additional Kahukura FTEs were added to join the initial 15.
The increased funding will now be retained for a further financial year. Funding for the additional Kahukura FTEs will continue at four BFC Plus providers.
After 30 June 2023 BFC Plus funding will return to pre-Budget levels.
BFC Plus providers can discuss specific situations with their Regional Relationship Managers.
FAQs about the Budget 2022 funding
Q How long is the increased funding available for?
A The funding is for two years (until June 2024) and will be allocated across the years as follows:
Costs (operating) $m
|
2022/23 |
2023/24 |
Total |
|---|---|---|
|
14.0 |
7.0 |
21.0 |
Q What BFC services are affected?
A Four BFC services will receive Budget 2022 funding:
- Additional funding to 30 June 2024:
- Financial Mentors – one-to-one support empowering people to achieve their goals.
- MoneyMates – peer-led support for people to learn and share together as a group.
- Additional funding to 30 June 2023:
- Building Financial Capability Plus (Kahukura) – intensive support for people with complex needs.
- Microfinance lending and Debt Solution services.
Q When will the funding changes take effect?
A Funding increases will show in providers' contracts before the first quarterly payment of the financial year due 20 October 2022, backdated to 1 July 2022.
They end 30 June 2023 or 30 June 2024 as part of the procurement of BFC services for 2025 and beyond.
For any other questions or comments regarding these changes, please contact us by email at Financial_Capability@msd.govt.nz
