NSW Meals on Wheels services operate under funding of $11 per meal, but could have their funding cut back to $7.50 per meal, according to an announcement by Minister for Senior Australians and Aged Care Services Senator Richard Colbeck in May.

Holbrook and Walla Meals on Wheels manager Sue Winnett said the funding cut would jeopardise the ongoing viability of the important service.

"It's more than just a meal," she said.

"It's the things that we do when we go in, we might take someone shopping or take someone to a doctors appointment in Albury or up to Wagga.

"It's all those extra things that we won't be able to do if they drop our funding."

Earlier this year, Holbrook and Walla Meals on Wheels completed a program connecting seniors to the outside world through iPads.

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Ms Winnett said the announcement had also caused uncertainty over when funding would be delivered.

"They might go to funding in arrears," she said.

"That'd be catastrophic for us, because we don't have a lot of reserves.

"Everything we get we spend it on our service, on our clients.

"We're funded in advance at the moment, so we've got that money in hand, we know what we can spend, if we don't have that, we don't have a huge reserve to rely on, so we'll have to cut back."

Ms Winnett said the service would lose its Holbrook office, at least two staff members could lose their jobs and services would be reduced significantly.

"I reckon we'd probably have to drop our services by maybe 20 per cent," she said.

"That's probably about 25 people.

"We won't be able to go to that one person that's 60 kilometres from our office, we wont be able to do that, so who looks after those people?"

Meanwhile, Ms Winnett said there had been no reduction in requests for help.

"We find demand is just on the up at the moment, especially with COVID-19," she said.

"It's worked out at about a 25 per cent increase in service provision."

Last year Meals on Wheels asked the community to sew masks for 35,000 volunteers after there was an increased demand for services during the pandemic.

Ms Winnett said the NSW Meals on Wheels peak body has been trying to get clarification on whether its funding would be reduced.

"They're not getting an answer," she said.

"But we need to make plans."

The Border Mail requested clarification from Senator Colbeck's office and are waiting for a response.

The Minister for Senior Australians and Aged Care Services Richard Colbeck said no meals provider would have their funding reduced, but that funding would change to be delivered in arrears.

"The recent changes to funding for meals services increase the minimum level of funding provided by the Australian Government under the Commonwealth Home Support Program (CHSP)," he said.

"All meals providers in NSW who are funded less than $7.50 per meal will see an increase in their funding levels. No meals provider will have their funding reduced.

As part of the 2021-22 Budget, the Government announced that most CHSP providers would move to payment in arrears.

"The Government is in the process of consulting with CHSP providers on the design and implementation of this measure. This consultation includes providers who deliver meals, and will consider the impact of the measure on providers of meals services."

Meals on Wheels in NSW caters for 40 per cent of Australia's Meals on Wheels clients.

Meals on Wheels NSW has asked the community to advocate for better funding.

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