The Otago and Southland District Health Boards expect to save up to $4 million annually by reducing household help for thousands of elderly people.
The boards, which were on Monday given Government approval to merge, say they will no longer pay for house cleaning for those who only required that service.
David Chrisp, of the Southland District Health Board, told Nine to Noon people who receive 1.5 hours help or less will be told they no longer qualify from next week, affecting about 3000 people.
People who need other services, such as personal care, will continue to receive some level of house cleaning assistance.
Mr Chrisp says says disability support services in Otago and Southland have been over-spending and have been providing services that are better than the national average.
This is a major factor in a projected funding deficit in years to come, he says, and Health Minister Tony Ryall has indicated that this is not acceptable.
Complaints over phone assessments
Grey Power says at least five health boards are now phoning older people to reassess their support requirements.
The lobby group says it is receiving a stream of complaints from around the country from older people about the way they're assessed.
Grey Power president, Les Howard, says health board interviewers ring people who receive home help and ask how they are, and at the end of the phone conversation tell them their home help is being discontinued because they are OK.
Health Minister Tony Ryall says he has asked the Ministry of Health to make sure home support assessors are fully informing older people of the purpose of conversation at the beginning.
Rural women's organisation criticises cuts
Rural Women New Zealand has described the Otago and Southland decision to cut funding as "short-sighted", saying it will create a bigger dependence on the DHB's services in the long-term.
Health spokesperson Marie Appleton says sometimes people just need a small amount of help to retain their independence and keep them in their own homes.
Last year, ACC announced it would cut the travel allowance it pays home care helpers, which the agency said would bring it into line with the amount DHBs offer their workers.