WHAT would you do if your neighbourhood house closed its doors?
Maybe it’s where you share a community lunch. Maybe it’s your recovery group, your playgroup, or a lifeline for food relief and connection. Across Victoria, more than 185,000 people rely on these humble hubs every week – and now, they’re under threat.
Neighbourhood Houses across Victoria are taking a stand, calling on the State Government to urgently increase their annual funding, or risk the closure of up to 200 community houses statewide.
Rising costs and stagnant funding are forcing many to cut back essential services. In Bass Coast, Wonthaggi Neighbourhood Centre at Mitchell House (WNC) has already had to close its once-busy food pantry, a service it simply can’t afford to resource.
Thanks to community generosity, frozen meals and weekly lunches still continue, but it’s a far cry from the containers on the porch once filled with groceries and fresh food.
Fortunately for those in Wonthaggi, five other organisations can assist, but even those face challenging times ahead, as cost-of-living pressures bite deeper than ever and a significant increase in individuals and families walk through their doors.
And there is no stereotype – it’s pensioners, it’s families, it’s individuals, those who have never asked for anything in their life, who are finding themselves unable to afford a roof over their head, and food on the table.
The figures reveal just how far every dollar stretches. In 2024, Wonthaggi Neighbourhood Centre had an income of just $286,039 – less than the Bass Coast Shire CEO’s salary – yet delivered $957,878 in community value.
That’s $3.35 returned for every $1 of income, or $9.71 for every $1 of state funding (Neighbourhood House Coordination Program).
In Foster, Manna Gum are working with the community to help build food resilience, and as centre manager, Rebecca Matthews explained last Thursday when discussing the new Bass Coast – South Gippsland Food Systems Alliance, it’s hoped this will be another avenue of support for the community.
“[In three years] we hope there is less food insecurity and healthier, fresher food available for those in our community,” Rebecca said.
“At present, we assist 100 households, and that number is growing.
“It’s important that we keep the pressure on government at all levels around housing, as housing is a major contributing factor to rising costs that, in turn, is increasing food insecurity and the need for food relief.”
Manna Gum is taking a firm stand, also calling on the State Government to boost funding.
“Our State funding hasn’t kept pace with rising wages and operating costs,” Rebecca stated.
“We are doing, and being asked to do, a lot more with the same funding – it’s unsustainable.”
Last year, Manna Gum turned $355,316 of income into $1,357,320 in value. A staggering $13.76 for every $1 of Neighbourhood House Coordination Program Funding.
And whilst some can argue that there are additional grants available to Neighbourhood Houses to apply for, as WNC centre manager Leslie Adams highlighted in conversation with the Sentinel-Times, it’s not as simple as quickly ticking boxes; each application takes significant time and paperwork, and takes managers and coordinators away from other important work.
“Across the Gippsland region, our Neighbourhood Houses have been struggling financially for a number of years – but it’s now reaching a critical point where I am advising Centres to reduce what they are providing. In some cases, this means shorter opening hours or fewer community programs,” Antonia Halloran-Lavelle, network manager, Neighbourhood Houses Gippsland, said on Monday.
“It’s simply unsustainable to expect Neighbourhood Houses to deliver the same level of service year after year with less funding in real terms. Rising costs, higher demand and stagnant indexation mean that even maintaining safe staffing levels is becoming increasingly difficult.
“Neighbourhood Houses are vital local infrastructure – they are where people find connection, learning, and support when life gets tough. Without an urgent increase in core funding, some communities risk losing this essential safety net altogether.”
Neighbourhood Houses have the support of Member for Bass Jordan Crugnale, who has thrown her full support behind the campaign for increased funding.
“[Neighbourhood Houses] do extraordinary work across so many programs, services and are always there to best support community members in need, whether it’s through emergency relief, meals, activities, events, assistance in applying for energy discounts, IT, Centrelink and the list goes on and on,” Ms Crugnale said
“I have offered to collect all the postcards to hand-deliver in person to Minister Spence.”
Whether you are a regular at your local community houses or pop in on occasion, locals are being urged to visit their Neighbourhood House and sign a postcard calling for increased funding by the State Government in next year’s budget.
“We know that 94 per cent of neighbourhood house visitors experience improved physical wellbeing and 96 per cent report improved emotional wellbeing as a result of participating [at neighbourhood houses],” Neighbourhood Houses CEO Keir Paterson stated.
“We calculate the overall benefits to the Victorian community at $922 million per year.”
According to Neighbourhood Houses Victoria, the Neighbourhood House Coordination Program funding (NHCP) was designed to cover staff wages and operational costs, but due to inadequate indexation over many years, the NHCP doesn’t even meet the costs of employing a manager, a fact WNC can attest to.
“All of the funding from the state government is used to support staff salaries, amounting to 24 hours per week. The House programs and community support offered in various ways are funded through membership fees, room rental, donations, and specific grants from sources such as Bass Coast Shire Council,” WNC Committee of Management member, Grant Watson explained.
“Increasing needs have placed additional demands on salaried staff and the volunteer cohort. Fixed funding that has not increased significantly in recent years [has resulted] in staff being in a position to fit more tasks into a static number of hours each week,” Grant continued, referring to a question posed by the Sentinel-Times regarding how limited funding is affecting services and programs.
The financial pressures could see the house shift to a four-day week in the future.
Back inside Mitchell House, 35 postcards have been signed within a week.
“Most speak of the inclusive environment and how they feel like part of the community. A place to be welcomed,” Leslie Adams explained.
WNC would like to see increased funding to support appropriately qualified staff for more hours per week and further funding above this to support programs in recognition of the value neighbourhood houses bring to the community.
“It is important that local members are cognizant of the important contribution that neighbourhood houses make to the wider community and that they are encouraged to advocate in parliament for increased funding to support the vital work these Centres do within the community,” Grant explained.
Grant acknowledged the local community support for the house and thanked Bass Coast Shire as a willing provider of grant funding and maintenance of Mitchell House.
“Neighbourhood houses are the heart of so many Victorian communities – they bring people together and help families doing it tough with everything from food support to offering chances to learn, connect and get involved locally,” a spokesperson for the Victorian Government stated when asked by the Sentinel-Times for comment.
“That’s why we’re proud to back the Neighbourhood House Coordination Program with more than $43 million every year – supporting over 400 neighbourhood houses, 16 networks, and the peak body, Neighbourhood Houses Victoria.
“Last year’s Budget delivered $2.5 million to provide food relief through more than 70 neighbourhood houses, and this year we’ve built on that with $9 million for the Community Food Relief Program – helping Victorian families get the support they need.”
Manna Gum has started their Christmas Appeal with donations, including presents, food and gift cards, available to be dropped off at the Bendigo Bank and supporting organisations and businesses in Corner Inlet.