Koha Kai in Invercargill is mothballing its teaching programme, putting the blame on Covid and government changes.

For the past nine and a-half years, the teaching programme has been creating a pathway to employment for people with disabilities but has stopped as the organisation tries to get sufficient government funding.

Koha Kai pouārahi Janice Lee said it was a very tough decision to close the teaching arm, but costs pressures had become too much.

"We have built Koha Kai around this teaching programme but the costs keep going up and the funding is not continuing at the same rate,"she said.

"I talk to other charity organisations and we all knew this day was coming ... I have always taken this view it was likely to happen at some point."

With the money the government had spent on Covid, she was aware cuts would have to be made further down the line and that was what was occurring now.

She said the commercial arm of the organisation had grown but it had not quite developed enough to help subsidise the teaching programme.

The teaching programme, which started in 2014, had resulted in hundreds of people going through it over the years and not just people with disabilities.

She said others who needed to improve their job skills and social interaction had joined the programme and made progress.

"Providing those skills is at the heart of what we do."

Six staff have been made redundant, including two who had disabilities.

She said the group was trying to keep people engaged and involved and the last thing they wanted was to have people "back on the couch".

She said although the programme had been mothballed, it could be quickly start again if the money could be found.

The group needed $350,000. Government funding had provided $200,000-$250,000 a year and the rest was then found through various other funders.

She was not confident the teaching programme would come back, as things were happening round the world which would push up expenses and put priorities elsewhere.

Post Covid, she knew the group had to pivot to make the programme more self-sustainable.

"We have made a commitment to those who live with the challenges of disability, and we are actively working towards a more sustainable way forward whatever that may look like, for connection, inclusive opportunities and equity in our community."