Home Care Package funding goes up 12%

Article published 29 May 2023

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Home Care Package funding goes up 12%

A huge pay rise for care workers is funded by the federal Government but make sure your service levels aren't reduced.

PEOPLE who are worried about what will happen with their Home Care Packages (HCPs) now that care workers have been granted a 15 per cent pay increase can rest assured that they won’t be footing the bill.

Shortly after the Fair Work Commission had handed down its decision about the wage increase, the Government announced it would fully fund it. This means that they would increase subsidies to residential aged care providers and would increase the value of Home Care Packages.

That was only an announcement, you might say, but it was an announcement which was confirmed on Budget night. The Government is increasing Home Care Package funding and funding for the Commonwealth Home Support Program by $2.2 billion over four years to increase the wages of aged care workers.

A possible complication is that not all HCP providers charge the same prices. So, while you can expect to receive the same care and services that you currently receive, it’s important to make sure this actually happens.

The bottom line is that the amounts you pay out of your package should not increase by more than the value of your package is increased. The July 2022 package funding levels will go up by 11.9 per cent, the Government says.

This means an HCP 1 is funded at $10,272 a year from 1 July 2023. An HCP 2 is funded at $18,069 a year, an HCP 3 at $39,320 and an HCP 4 at $59,607.

The way to keep tabs on this is through your home care agreement. If prices change, your home care agreement must also be changed. This is where you can ask how many hours of particular services you will receive, and you can compare that with what you are getting now.

Because pricing doesn’t work the same with every HCP provider, there may be anomalies. However, HCP providers know that they must stay within the new package funding without providing less service. This is what you watch, and you accept no excuses.

Be mindful that like everyone in Australia, HCP providers are having to deal with high inflation. This complicates things for them, and they must somehow fit in this 15 per cent wage increase as well.

Your HCP provider should contact you before 1 July 2023 to take you through the changes they propose. Ultimately, if you don’t like what they are proposing, you have the option to take your business elsewhere.


For more information please email our media contact at media@cpsa.org.au

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