Mental health cash flow for Victorians

Victorians with mental health issues who might have fallen through the cracks in the move to the National Disability Insurance Scheme have been given a $70 million state government backing.

Mental Health Minister Martin Foley announced on Friday that $70 million would be spent over two years to aid community mental health providers give psychosocial support to those with severe mental illness who are ineligible for the NDIS or have not yet transitioned to the scheme.

Mr Foley blamed the federal government's "mishandling of the NDIS rollout" as the reason the state government needed to cough up cash.

"We won't sit by and watch Scott Morrison and his government put Victorians on sub-standard plans or abandon them altogether," he said.

Yet the NDIS was a project under former Labor leader Julia Gillard's leadership.

About 1800 plans for people with psychosocial disability have been initiated yet 4400 people have been approved plans, the state government said on Friday.

Under the spend, community mental health organisations will receive $50 million to deliver a new service and give mental health workers job security, while disability and community mental health agencies will be able to share in $20 million of grants.

Mental Health Victoria chief executive Angus Clelland welcomed the cash, saying it was an enhanced safety net and would secure hundreds of mental health jobs in Victoria.

"More investment in mental health is desperately needed during a period of transition and reform, and the Andrews Government's initial investment will help ensure people can receive appropriate supports and services," he said on Friday.

Mr Clelland called on the federal government to prioritise investment in community mental health services across the country.

Federal Minister for Health Greg Hunt hit back on Friday at Mr Foley's accusations of mishandling the NDIS, saying the federal government had led efforts to secure psychosocial mental health support for those not covered by the scheme.

Mr Hunt said a recent report by Mental Health Victoria actually showed the Victorian government had the lowest per capita investment in mental health nationally and so it was good that it was moving to address its own failures.

© AAP 2018