Switching to Self-Management After a Plan Cut: Timing, Process and Common Pitfalls

A Funding Cut Doesn’t Have to Leave You Feeling Stuck

Receiving the news your NDIS funding has been cut can come as a heavy blow. After so much hard work has gone into creating routines, organising supports and setting goals to improve your life, a reduction in budget can bring about concerns around how you’ll continue to access your supports. A natural first response when faced with a reduced budget as a NDIS participant, family member or carer, is to try and stretch existing NDIS funding.

Self-management can be an option for this.

While self-management will not stretch your NDIS funding amount to allow you to spend it at a faster rate, it can offer greater control and flexibility over your supports and the services you access. Many participants find that the ability to hire their own providers, negotiate service agreements and rates, and select supports that are a good fit, can go a long way in their efforts to live independently and access appropriate supports, but this added level of administrative and financial management isn’t suited to everyone.

This guide explains what self-management looks like, how it may benefit a reduced NDIS budget, the process involved in switching to self-management, and some pitfalls you’ll want to avoid.

What is self-management?

Another way you can choose to use your NDIS funding is through self-management. Instead of the NDIA or your plan manager paying for the services you receive you take responsibility for managing some or all of your NDIS plan yourself. This includes paying all your service providers, keeping receipts for your expenditure, making claims for payment of services and ensuring that the funds are spent in line with the rules of the NDIA.

While this may sound overwhelming the majority of NDIS participants find once they set up a simple budgeting system that management is quite straightforward.

The main benefit of self-managing your funding is the freedom and flexibility it gives you. Self-management allows you to choose most (if not all) registered or many unregistered providers to deliver your support and gives you greater flexibility around when and how the support is delivered, provided the supports are aligned with the goals and funding in your NDIS plan.

Comparing the Three Management Options

You also do not have to self manage the entire NDIS plan. Many participants decide to split their plans into a hybrid approach, in which a portion of their plan is self managed and the other portion remains plan managed.

If you want a balance of self-management and ease you could also look into this type of management. We recommend discussing this further with your NDIS planner, LAC or support coordinator so that they can best guide you.

Is self-management the right choice after a plan cut?

A number of our participants come to us after being subjected to NDIS funding reductions and are looking for ways to ensure their budget gets them more. A form of management you can use to make this happen, whilst gaining more choice and control in how your supports are accessed is self-management. Through self-management, you can: Work with the full range of both NDIS-registered and many non-registered providers; (as long as they are supporting your plan goals and have appropriate terms and conditions that fit the NDIS guidelines).

You will also have more flexibility in negotiating fee structures with independent providers; meaning your money can go that little bit further!

However, self-management isn’t just about flexibility, you will need to manage all budget transactions, financial reports and expense claims. A system is crucial! If finances and administration sounds overwhelming then a third party, called a plan manager can support you to maintain your provider choice, whilst managing all of your NDIS finances on your behalf.

In the end, it comes down to your specific support needs, personal situation and comfort levels to decide which management option best suits you.

When Should You Switch to Self-Management?

If you’ve decided self-management could be a practical option, the question becomes when is the best time to switch. There are two opportunities you can make this change: at a review of your current NDIS plan or during your current plan. The best way to do this is often depending on your circumstances and how urgent it is that the change happens.

Switching At Your Next Plan Reassessment

If your current management method is working for you, then it is possible to just change over at your next plan review.

Talk to your NDIS planner about having your next plan managed in whole or part, and the changes will apply at the start of your next plan.

That way, you will have time to prepare to manage your funding. You’ll be able to work through any questions you may have to ensure you feel confident with the process.

Switching During Your Current Plan

If the decrease in your funding has negatively impacted your access to necessary supports, then the timing of the change to self-management is also important. In this case, if it is no longer possible to wait for a plan review, you will need to contact your Local Area Coordinator, Support Coordinator or the National Disability Insurance Agency.

It may be necessary for you to make a request for your NDIS plan to be changed.

Don’t Switch In Crisis

While self-management is a great system, it’s not advisable if you are feeling overwhelmed. You don’t want to be setting up systems and getting to know claiming processes while also dealing with significant life changes such as transitioning from essential support services, or challenging decisions. Wait for a calmer time and when you are in a better headspace.

How to Switch to Self-Management: Step by Step.

If self-management sounds right for you then by following these distinct steps you will be self-managing your NDIS plan without too many issues. You can break down each of these steps across a number of different days, you just need to be cautious and approach each phase of your transition thoughtfully, making you confident as soon as you become self-managed.

Step 1: Determine what you want to self-manage

There’s no need to self-manage all of your NDIS plans. A common choice is a hybrid, or mixed, approach where self-management is used for some areas of your funding and a plan manager for others. You might choose to self-manage core supports, while a plan manager covers your capacity building supports. Consider how much of the administration you’re comfortable undertaking and whether a family member or carer might be available to help. Careful consideration of this at an early stage can make self-management seem more manageable.

Step 2: Talk to the powers that be

Before embarking on the journey of self-management, it is important to connect with your Local Area Coordinator (LAC), Support Coordinator or NDIS planner.

They can tell you all about how it works, answer your burning questions and let you know if it is as straightforward as simply making a change at your next review or if there is a separate procedure to follow.

This is also your chance to confirm your responsibilities and ask what the impact will be on your existing plan. The earlier you know, the easier it is.

Step 3: Establish Your Systems Before You Kick-Off Self-Management

Preparation is key to effective self-management. You could open a dedicated bank account for your NDIS funding, just to keep it entirely separate from your personal banking before your new setup gets underway. You’ll need to have some simple, manageable system in place for tracking your budget – either an excel sheet or a more digital NDIS specific budgeting app or tool will work, as long as it’s easily maintained. File your receipts, invoices and service agreements electronically (or keep them in a digital or hard folder) to keep everything tidy.

Step 4: Communicate with Your Providers

If you would like to stay with your existing support workers, make sure they are aware you will be moving to self-management. While some providers will agree to a self-management arrangement, others won’t. If you are looking for new supports, it's wise to take a bit of time to compare different supports before settling for the first option that comes up.

The focus should not be on finding the lowest priced option, but good quality supports at a good value.

Step 5: Put Service Agreements in Writing

Having a clear written service agreement will avoid confusion. The service agreement does not have to be complicated, but should include key details such as:

• the supports to be provided
• agreed rates
• payment terms
• cancellation arrangements
• any other important expectations

Step 6: Start Small and Build Confidence

Once your NDIS self-management funding is active, you’ll begin making payments to your providers.

The first few claims might feel daunting, and that’s okay. Take your time and be sure that all claims are within the appropriate support categories. After a little while, the process of paying providers and making claims will become second nature. By keeping your accounts up-to-date and your budget on track, you’ll quickly get used to managing your own plan.

Preparing for Your First Month of Self-Management

Getting ready for your first month in self-management might feel a bit new, and that is okay! Let yourself get used to how the claims process works, how your budget works, and how simple processes and routines can help manage your funding. Get started organising your service agreements, receipts, and invoices from day one.

That way your record-keeping will be consistent and easy to use.

By putting aside just 5 minutes each week to check where you have spent your funds, you can help ensure any little problems do not become larger ones, and gain the assurance you are staying on budget and within NDIS requirements. If you are at all uncertain of how to make a claim, how to deal with a provider, or what your role is, get help from your LAC, support coordinator or the NDIA. Asking questions in advance of a problem can save you from errors.

Common Pitfalls to Avoid

It’s easy to slip up when you’re just starting with self-management, but awareness can help.

The biggest mistake people make is mixing their personal finances with their NDIS funding, making it very difficult to track expenses and manage a budget. Others include losing track of invoices and receipts, selecting support providers without verifying their qualifications, or claiming for supports that aren’t eligible under NDIS rules. Regularly setting aside a small amount of time each week to check on your finances, organise receipts and verify that your claims are accurate will go a long way to ensuring a smooth self-management experience.

Conclusion

An NDIS funding cut can be challenging, but self-management may help you make the most of your available funding. It offers greater control over how your budget is used and who provides your supports, although it isn’t the right option for everyone. The best approach depends on your circumstances, confidence and willingness to manage the administrative responsibilities. Before making any changes, speak with your NDIS planner, LAC or Support Coordinator to choose the management option that best supports your goals.