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Residential Support Subsidy : Contents

Historical information

Residential care for people with age-related disabilities has been the responsibility of the Ministry of Health since 1 July 1993 when Residential Care Subsidy was created.

Residential care services for people with physical, intellectual or psychiatric disabilities (including drug and alcohol rehabilitation) was paid for by Income Support (now Work and Income) through 'maximised benefit'.

The 'maximised benefit' payment was a 'fee for service' payment made up of a number of different types of benefits (main benefit paid at single Invalids Benefit for 18 years and over, Accommodation Supplement, Disability Allowance and Special Benefit). The 'fee for service' rate was set by Government and varied according to the type and level of disability of the people in care.

This continued until 1 July 1995, when the funding from maximised benefits was transferred to Regional Health Authorities who later became known as Transitional Health Authorities, Health Funding Authorities and are now known as Ministry of Health.

For more information see: