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A better alternative to group homes is here, and it’s time to grow it

Right, more than 40,000 Australians with disability have high support needs. Most of these people live in group homes, where they have very little control over where they live and who supports them.

The Disability Royal Commission revealed just how unsafe these settings can be, recommending they be phased out.

We are approaching a crisis point. The cost of group homes has exploded by 28% over the past five years, placing unsustainable pressure on the NDIS. At the same time, people with disability simply don’t want to live this way, and providers are struggling to fill vacancies.

There is a better way. Our new report shows that Individualised Living Arrangements (ILAs) are more empowering, and they’re also more cost-effective. ILAs offer people with disability greater choice, stronger relationships, and a real sense of home. And if scaled, they could save the government $260 million over a five-year period.

We’re calling on the government to fix outdated pricing and regulation, support providers, and ensure people with disability have the support to explore ILAs. ILAs have huge promise and are already working well for hundreds of people. Now we need to grow them across the country.

Read the report and help us shift the system, because everyone deserves to choose how they live and who supports them.

A recent investigative report on a series of horrific incidents of violence and abuse in group homes was shocking. But nothing new.

This report is just the latest in a long line of reports and inquiries that show that group homes are often unsafe. Where residents have little or no say over who they live with, their daily routines or how they receive essential supports.

And each time, we follow a predictable pattern. People express outrage and concern. The government promises to crack down on bad providers. But nothing is done to address the root cause of the issue: when people with disabilities are isolated and not included in the community, they are at greater risk of harm.

In 2023, the Disability Royal Commission revealed harrowing evidence about violence, abuse, neglect and exploitation in group homes. Only months before, the NDIS Quality and Safeguards Commission’s Own Motion Inquiry found more than 7,000 serious incidents were reported in a sample of seven of the largest disability group homes providers over a four-year period.

This is not a question about insufficient funding in the disability housing and support system.

Quite the contrary. Providing support to people with high housing and living support needs is costing the taxpayer $15 billion a year. Yet this investment is not delivering the quality of support people need to live dignified lives where they are included in their local community.

For this systemic violence and abuse to stop, the federal government needs to invest in a range of alternative housing and living options. Government must then commit to stopping the flow of people into group homes once and for all. 

The National Disability Insurance Agency’s attempt to stimulate more contemporary living options through a specific funding stream (individualised living options) has failed. Government’s lack of commitment to growing these options is demonstrated through the lack of indexation for this stream of funding since it was established in 2019. This is in stark contrast to the treatment of Supported Independent Living, the stream used to fund group homes, which increased by 28% over the same time period.

Australia lags behind other OECD countries in providing more inclusive and contemporary housing and living options, despite us paying more per capita in equivalent disability support. The United Kingdom, parts of the United States and Canada for instance have successfully implemented inclusive housing and support for people with disability.

The UK now has about 10,000 people in Host arrangements, where a person with disability is matched with a carer who has a spare room in their house. The person with disability shares in the Host’s life, family and community. These arrangements can save the UK government between $16,000 and $61,000 per person per year compared to supported living and residential care. This costs significantly less than the supports provided by group homes through the NDIS (average cost of about $350,000 per person annually). And, it’s safer, with ninety-one per cent of people living in ‘shared lives’ arrangements reporting feeling more involved in their community.

These arrangements exist at a small scale here, particularly in Western Australia. Perversely, while innovations such as these were meant to grow under the NDIS, they have stalled.

The government’s continued lack of response to the Disability Royal Commission recommendation to phase out group homes over a 15-year period will only result in more people with disability being subject to violence, abuse and neglect.

People with disability deserve more choice in how and with whom they live. Taxpayers should also demand better quality services delivered with their tax dollars.

There is enormous potential to grow more contemporary models of housing and living in Australia but more must be done. Shared lives arrangements, apartment living in mixed developments and flexible supports (such as key ring and drop-in and on-call) should all be part of the solution. Existing providers need support to continue to deliver these arrangements and new providers need to be encouraged to enter the market. We need strong market stewardship from the government to grow more bespoke, individualised arrangements for people with disability.

Both sides of politics should commit to an action plan aimed at growing alternative housing and living options and stopping group homes being the de facto solution for people with high support needs. This will address the serious incidents of violence, abuse and neglect happening daily across the country in group homes. Most importantly, people with disability will have better, more affordable alternatives that are safeguarded by strategies that work for all of us: deep relationships, friendships and connections to their community.

Dr Di Winkler AM
CEO, Summer Foundation