Gumboot Friday leaves $1m unspent but minister is confident it can grow

Youth counselling service Gumboot Friday still has the backing of Mental Health Minister Matt Doocey, despite finishing its first year with $1 million of unspent government funding at a time when some frontline providers are warning of a youth mental health crisis and huge unmet need.

Internal documents show $1m of the $6m allocated to for the 2024 financial year went unspent. While the service was on track to meet its contractual obligations for year one, delivering around 30,000 sessions to 10,000 young people aged 5-25, the demand has not yet grown to a level that would use the full $6m allocated for the year.

But Doocey was confident the service would grow to meet its full potential and pointed out the Government is only paying for counselling sessions which are delivered.

The unspent $1m will go back into a ring-fenced fund to go towards other mental health initiatives. “I think it shows good contracting,” he added.

The documents also highlight an ongoing risk common in fee-for-service models — that counsellors might invoice for sessions not delivered. Two practitioners have already been removed from the platform for non-compliance. However, Ministry of Health officials say they are satisfied with the programme’s safeguards.

But Doocey was confident in its processes. “I think that shows they’ve got the right clinical and administrative processes in place, clear auditing, clear guidelines to be on top of that.”

The documents also reveal the platform struggled with rising wait times earlier this year, reaching nine days in January due to reduced availability over the holiday period. There were also delays in onboarding new counsellors due to system changes.

The Gumboot Friday programme, run by the I Am Hope foundation, was awarded $24m over four years under the National–New Zealand First coalition agreement. The foundation was established by celebrity comedian Mike King.

It was the single largest external allocation of mental health funding in 2024 Budget.

Questions were asked about the charity’s close ties with National, and whether there was enough transparency over the contract process, when it was awarded the contract.

Auditor-General John Ryan in October wrote the funding was “inconsistent and unusual” and the Ministry of Health did not fully inform ministers of the risks. He noted the “challenging situation” it created for officials, and warned he would be monitoring the contract.

King was absent from an announcement earlier on Thursday where Doocey praised the service. I am Hope foundation chair, Roger Hill, said King was absent for personal reasons.

Doocey would not be drawn on King’s absence.

At the announcement, Doocey said the country was “turning the corner” with reducing wait times and increasing the workforce