Source: New Zealand Government
Disabled people will have more choice over how they use their flexible funding from April, while keeping the same level of support they receive today, Minister for Disability Issues Louise Upston says.
“Our Government committed to restoring flexibility, choice and control in a way that was sustainable,” Louise Upston says.
“The steps we have taken since 2024 to stabilise the disability support system have been successful. Because of this, we can now confirm two things: the current purchasing rules will be removed in April, and people’s flexible funding allocations will stay exactly the same as they are now.
“This means we no longer need to look at what people spent in previous years to set new budgets.
“People will also get more support, guidance or coaching to manage their flexible funding – in a way that reflects their situation.
“Flexible funding must still be spent in line with people’s plans, a few things will need pre-approval, and people must stay within their allocated budgets. However, they’ll have more choice and control over the supports that work for them, including respite options for carers.
“These changes reflect feedback from the disability community last year, and the recommendations of the 2024 Independent Review.
“In 2024, some difficult decisions were made to limit rapidly rising costs. The 2024 Independent Review found disability support services had unsustainable spending increases, unclear criteria for access to flexible funding, and an unfair postcode lottery for disabled people around the country.
“Since then, we have made real progress in stabilising services.
“DSS has strengthened financial controls, budgets and oversight for NASCs, Enabling Good Lives sites and equipment providers, fixed longstanding issues with residential care pricing, and improved the way people’s needs are assessed and funding for supports is allocated.
“Our Government also provided significant new funding in Budget 2025, with $1 billion to manage demand and inflation pressures.
“These steps mean the system is financially stable, sustainable, more consistent and easier to use. We can now restore flexibility and choice without creating uncertainty. Disabled people can be confident their support will continue.”
Editors Notes
From 1 April 2026:
Flexible funding budgets will stay at each person’s current allocation level.
The purchasing rules will be removed.
Flexible funding must still be spent in line with people’s funding plans, but people will have more choice about what works for them.
People still need to keep their spending within their allocated budgets.
Flexible funding still cannot be used for prohibited items such as alcohol, tobacco and gambling.
A small number of purchases will need pre-approval. For example, international travel or high-cost purchases, or certain kinds of equipment where safety and health need to be considered.
Hosts will support, guide or coach people to plan and manage their budgets. They will be talking to people about the support they need from April onwards. The level of support people get depends on their situation.