Labor to tighten child NDIS eligibility to curb spending as Queensland MP warns change is ‘failing kids’

National disability insurance scheme service providers will be required to undergo mandatory character checks and eligibility rules will be tightened further for children under 18, as Labor moves to curb growth in the $50bn program.But the health minister, Mark Butler, faces a backlash from state counterparts as he announces major changes on Wednesday, with Queensland accusing federal Labor of walking away from responsibilities to families dependent on long-term care.Guardian Australia can reveal the Queensland disability minister, Amanda Camm, was blocked from attending a briefing by Butler and the treasurer, Jim Chalmers, on Tuesday. Only state and territory treasurers have been briefed on cuts ahead of the public announcement – not ministers responsible for implementing changes.Butler said he intended to work with the states to change eligibility rules, to bring the NDIS back to its original goal of care for people with permanent and significant disabilities.The NDIS will be the biggest source of savings in the 12 May federal budget. The scheme’s cost grew by more than 10.3% last year and is on track to cost $63bn by 2028-29. It is projected to support more than 1 million participants by 2033 and to reach $95.8bn in 2034-35, according to the latest quarterly update.Sign up for the Breaking News Australia emailLabor wants to limit growth well before then to between 5% and 6% annually.Character checks for providers would help stop waste and drive out dodgy operators behind “systemic” fraud. Organised crime groups have infiltrated the scheme, using coercion and cash kickbacks to participants and families to launder money.State governments are preparing for more children under 18 to be transitioned away from NDIS services, changes that would go further than the new foundational supports program announced by Butler in August last year. Known as Thriving Kids, it is designed to support children with autism and developmental delays.Queensland is yet to sign an operating deal for the new program, due to begin in October.Camm said Labor must not abandon the most vulnerable to improve the budget bottom line.“The federal government’s plan to walk away from their responsibilities to children and families is failing kids, not thriving kids,” she said.“Serious concerns remain about the long-term care of these children, let alone those who are next in the crosshairs of their NDIS failure to plan.”Butler will describe the changes as implementing the recommendations of a landmark review of the NDIS, released last year, with new technical advisory groups established to guide the changes.Children aged 18 and under made up 52% of the scheme’s 717,000 participants as of March last year. However, the group only received 19%, or $8.37bn, of all payments made by the NDIS.The shadow NDIS minister, Melissa McIntosh, said Labor had not consulted Australians with disabilities and their families.“At over $50bn a year and supporting nearly twice the expected number of participants – currently more than 760,000 – the scheme is under strain, and without serious intervention risks collapsing under its own weight.”Butler flagged in August last year adults with psychosocial disabilities would be the “second big cohort” to shift from the NDIS on to outside services.The NDIS’s most expensive plans are typically reserved for participants with the highest level of needs.Recent figures show about 41,000 participants use supported independent living or disability accommodation.That same data shows a participant’s plan with special accommodation averages about $241,000 a year, while a participant without it averages about $31,000 in support payments.Participants with special accommodation arrangements require help with showering, assistance with daily tasks and customised housing.From July, it will be mandatory for service providers offering those accommodation packages to undergo regular reporting, independent audits and worker screening checks.The finance minister, Katy Gallagher, said Labor was aware the disability community would be concerned about change, but current spending was unsustainable. “The states have an interest because they are on the tab for continued increasing costs. It has an impact not only on our budget, but on theirs too.”