Buloke Neighbourhood House Funding Push

Neighbourhood Houses across the Buloke Shire warn they may have to reduce services after the State Government failed to increase funding in the latest Budget, with the sector now turning its “Keep Our Doors Open” campaign to the November state election.

The sector, led by Neighbourhood Houses Victoria, had called for a 25 per cent increase in funding under the Neighbourhood House Co-ordination Program (NHCP), but the request was not included in the State Budget.

Neighbourhood Houses Victoria chief executive Keir Paterson said the existing funding model was no longer sustainable.

Historically, NHCP funding was intended to cover around 80 per cent of co-ordinator wages and 20 per cent of operational costs such as electricity, internet, insurance and program delivery.

“We found it takes 101 per cent of the funding, so more than is actually offered under the funding, to employ the manager,” Keir said.

He said funding has effectively fallen in real terms by about 20 per cent over the past decade.

The sector is seeking an additional $11.7 million annually to restore the original funding balance.

There are more than 400 Neighbourhood Houses across Victoria, supporting about 185,000 people each week and generating an estimated $21.94 in community benefit for every $1 of government funding.

Neighbourhood Houses say their role has expanded significantly as other services in rural communities have become less accessible, providing support including mental health and wellbeing services, digital inclusion assistance, emergency recovery, food relief and community engagement programs.

They say rural communities face particular challenges, including ageing populations, shrinking volunteer pools and increasing competition for people’s time between sporting clubs, emergency services and other local organisations. Longer working hours, increased travel, later retirement and caring responsibilities have also reduced the availability of volunteers.

Across Victoria’s rural north-west, including the Buloke Shire, Neighbourhood Houses say the pressures are being felt in reduced capacity to support community members, even as they continue to deliver the same number of activity hours.

Simone Christie, manager of the Birchip Neighbourhood House, said that while the House has been able to maintain its usual level of activities, it has been forced to reduce its office hours due to funding constraints.

She said the reduced hours mean less time to help community members seeking information and support.

“We fill the gap where community members don’t know where to go, and we’re able to provide them with that support or referral,” Simone said.

“People come to us needing help with all sorts of things, and having fewer office hours means there’s less flexibility to respond when the community needs us.”

She said Neighbourhood Houses are about more than delivering activities, providing opportunities for people to build social connections and reduce isolation.

“Whether it’s pickleball or another program, these activities bring people together and strengthen our community,” she said.

“A reduction in hours takes away the flexibility to co-ordinate programs and support people at times that suit the community.”

Broader concerns are also being raised across the region, with other Neighbourhood Houses warning the issue is not isolated to one town.

Charlton Neighbourhood House president Kaylene Cossar said Neighbourhood Houses play a vital role in keeping communities connected.

“In rural Victoria, we fill the gaps left as services become increasingly centralised and online, helping people stay connected, informed and supported,” Kaylene said.

“Without sustainable funding, many communities risk reduced services at one of the last places where everyone is welcome, support is accessible and community connections are built every single day.”

The Department of Families, Fairness and Housing has reduced the minimum operating requirements under the NHCP guidelines to be averaged across 46 weeks per year rather than 52, reflecting updated award conditions around staff leave and public holidays. 

For most Neighbourhood Houses in Buloke, which are funded for 25 hours per week, this means a house needs to be open for 1,150 hours per year, down from 1,300 hours.

While Neighbourhood Houses say the change may ease some financial pressure, they argue it will also reduce service availability in communities already experiencing increased demand.

The State Government said Neighbourhood Houses play an important role across Victoria.

“Neighbourhood houses are the heart of so many Victorian communities – bringing people together and helping families doing it tough with everything from food support to chances to learn, connect and get involved locally,” a Victorian Government spokesperson said.

The government did not respond directly to questions about why funding was not increased in the Budget, but said it continued to provide financial support.

“We invest more than $43 million every year in the Neighbourhood House Co-ordination Program, with indexation applied annually – this supports around 400 neighbourhood houses, 16 networks and the peak body, Neighbourhood Houses Victoria.

“A third round of our $8.5 million Community Food Security Program is now open for applications, with $2 million set aside specifically for food relief delivered by Neighbourhood Houses.”

Neighbourhood Houses say they welcome continued government investment in food relief programs, but argue that funding does not adequately cover the staffing needed to deliver them.

Across Victoria, they say rising demand for community development programs is placing further pressure on already limited co-ordination funding, making it difficult to sustain or expand services regardless of targeted program grants.

The sector is calling for a funding model that better reflects the real cost of wages in community work, arguing this is essential to keeping services viable and accessible in local communities.

With the Budget failing to meet its funding request, Neighbourhood Houses Victoria says its focus will now shift to the November state election, continuing its “Keep Our Doors Open” campaign and lobbying all sides of politics to restore the original 80/20 funding model.