Meals on Wheels NSW says they will not gain from a recently announced federal government funding change, despite catering for 40 per cent of clients nationally.
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The government announced they would boost the national funding amount for each meal by $2.60, raising the total government contribution to $7.50 per meal.
But NSW Meals on Wheels providers, whose payments are already higher, voiced their concerns over fears their payments would be reduced.
Chair of North Shoalhaven Meals on Wheels Sue O'Brien says NSW providers will suffer because of rising costs if their funding is not increased.
According to Mrs O'Brien, New South Wales providers have historically had higher federal funding because they are independent providers and are not subsidised by local councils unlike many other providers in other states.
She says they also have higher costs due to longer delivery distances, especially in regional New South Wales.
There North Shoalhaven cooperative is spread out through Berry, Shoalhaven Heads, Nowra, Bomaderry , Currarong, Culburra Beach and Jervis Bay.
Mrs O'Brien also raised concerns over a new change which would mean providers would receive their funding three months in arrears from next financial year.
"So we'll have three months without any funding and then get funding," said Mrs O'Brien.
"North Shoalhaven Meals on Wheels are in a fortunate position because we would be able to survive without funding for three months as we have enough money in term deposits to pay for our three part time staff.
"But 68 per cent of services in New South Wales have said they will not survive if they have to go with funding in arrears."
North Shoalhaven Meals on Wheels has over 350 volunteers and three part time staff who service 300 clients.
Mrs O'Brien said she had asked members to write to their local members to object to the funding model change.
"And were more than just a meal - two weeks ago our deliveries found a client on the floor who had fallen sometime in the previous 18 hours," said Mrs O'Brien.
"Our delivery persons called the ambulance and he was transferred to hospital where he is recovering.
"If he hadn't had our visit, he wouldn't have been found till the following Wednesday because his family weren't visiting due to lockdown."
The service provides over 4.5 million meals a year across 148 separate services in the state.