Meals on Wheels, an essential service for many older Australians, is struggling to maintain operations amid rising costs, leading to the exclusion of some seniors from its meal delivery program. The alarming trend has left some establishments teetering on the brink of closure.

As the country’s ageing population increasingly relies on home care, demand for nutritious meals and welfare vouchers from Meals on Wheels is growing. However, Paul Sadler, the organisation’s chairman, expressed serious concerns to the Herald Sun that federal funding is not keeping pace with rising spending, particularly on fresh produce.

Sadler stressed that the organization had to raise meal prices, a move that poses a significant challenge for retirees already constrained by the cost-of-living crisis. “Government support is critical to keeping our services sustainable,” he said. “For the first time in years, Meals on Wheels locations across the country have had to stop accepting new clients. We cannot afford to let this vital infrastructure collapse.”

The Commonwealth Home Support Programme (CHSP), the primary source of funding for Meals on Wheels, has not seen an increase in funding for meals since 2019. Despite a maximum of around $13.50 per meal, many sites are receiving as little as $7 to $8.

Research by EY for the Independent Health and Aged Care Pricing Authority found that providing a CHSP-funded meal service actually costs $23. This suggests that the government only covers around half the cost, with consumers or the service itself subsidising the rest.

This funding gap has led to around 15% of the 590 services across the state closing their books. The government is under additional pressure to identify new meal delivery providers as more councils withdraw their home care services for older people. In the past two years alone, more than 20 councils in Victoria have stopped providing services under the CHSP.

Meals on Wheels is currently working on a proposal for a new financing model, which the company aims to present to the government in the coming months.

A spokeswoman for the federal Department of Health acknowledged that individual providers occasionally face viability challenges, but said there was no evidence of widespread problems within the Meals on Wheels network.

She added that from July 2027, Meals on Wheels providers would switch to a new home care scheme for older people, which promises “fair and efficient pricing” based on recommendations from the Independent Health and Aged Care Pricing Authority.

In Victoria, the situation is particularly dire, with the state’s Meals on Wheels sites facing significant service cuts due to declining support from external providers and local governments. The state’s peak body has released a report detailing the serious difficulties facing Meals on Wheels Victoria, calling for renewed funding and government subsidies.

The report reveals that some areas have seen drastic reductions in meal services due to uncertainties around CHSP funding. Nelson Mathews, the state manager, noted that changes to the nearly 70-year-old program under the federal government are having a profound impact on Victorian establishments and recipients.

Regular meal deliveries and health monitoring have been reduced to mere transactions, losing the social connections and volunteer opportunities that come with service provision.

“The erosion of this health service, designed to help people live at home longer and reduce hospital visits, is putting many nutritionally, physically and socially vulnerable Victorians at risk,” Mathews said. He stressed the need for an urgent review and impact assessment for smaller communities if the service collapses.

“Investing in preventive healthcare is more important than ever, especially given the current pressure on the healthcare system. The dilution of this essential service is illogical.”