Sapere report on Guaranteed Hours Implementation

Tuesday, August 7, 2018


Guaranteed hours for home and community support workers was implemented on 1 April 2017 meaning greater
certainty for these workers in the hours they might work. This initiative was an important milestone recognising the
contribution care and support workers make to the lives of many New Zealanders.

There was a level of uncertainty about the cost impact of guaranteed hours prior to implementation. The Ministry
committed to undertaking a review six months after the implementation date and we report the results of this review. Sapere 
gathered employee information and operational cost data about guaranteed hours and progress towards the objective

(as set out in the Guaranteed Hours Funding Framework) that the majority of HCSS support workers are employed on guaranteed hours.

The review also provides an estimate of the current ongoing cost of guaranteed hours.

One-off system and change costs are excluded as these were claimed for via a separate arrangement.

The report concluded that the cost of unfilled hours is $7.28M per annum.    It also estimated that additional co-ordination and
administration costs born by providers are currently in the range $6.20M to $7.33M. Together with the cost of unfilled hours,
this brings the estimated per annum cost to $13.48M to $14.61M.   Sapere notes substantial uncertainty around this calculation.  

The report is attached at this link.



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