Dr Huhana Hickey on the important rights and voice of those with a disability

Dale Husband Dr Huhana Hickey | Disability Advocate and High-profile lawyer

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The government has announced major reforms to the disability support system, including standardised assessments under the Needs Assessment and Service Coordination (NASC) system, a new budget-based funding model, and greater recognition of family and carer needs.

The New Zealand Government has unveiled a sweeping package of reforms aimed at overhauling the disability support system, with a focus on stability, equity, and long-term viability.

Following a critical independent review, the delivery of Disability Support Services (DSS) has been moved from Whaikaha—the Ministry for Disabled People—to the Ministry of Social Development (MSD), effective October 2024. MSD will oversee the operational functions, while Whaikaha is being repositioned as a standalone department focused on policy, advocacy, and monitoring. 
This structural shift aims to eliminate conflicts between service delivery and advocacy roles and build upon MSD’s stronger financial controls and operational systems.

As part of Budget 2025, the Government has committed $240 million over four years, allocating $60 million annually from July 2025 to enhance residential care funding.
This investment is paired with a new national pricing model designed to replace inconsistent, ad-hoc provider payments. It aims to standardise care rates while accounting for regional cost differences, enable accurate financial forecasting, and provide greater stability for providers and recipients.

Consultation began with a December 2024 survey that received over 1,550 responses, guiding further engagements in early 2025.
By mid-2025, DSS had rolled out comprehensive consultations on standardising assessment and allocation processes, along with the criteria for flexible funding. Targeted discussions with service providers focused on residential care contracts and pricing. 
These consultations culminated in a new, staged system for personalised funding plans within the DSS framework; based on past usage and assessed needs, with flexibility bounded by clear budgets. The rollout begins in February 2026.

Under the new model:

• From 1 February 2026, new DSS users will begin assessments under the updated system.

• From April 2026, existing flexible funding users will transition to personal budget plans.

• By October 2026, reassessments across the board will follow the new structure.
  These plans aim to centre disabled people’s aspirations, include family and carer needs, and ensure funding is purpose-driven and fair.

The expansion of the Enabling Good Lives approach has been paused to ensure equity and prevent a postcode lottery in access to support. Decisions on eligibility and flexible funding are “to be made later in the year,” following consultation with the disability community.

What’s Next?

• Effective July 2025: New residential pricing kicks in.

• Feb–Oct 2026: Staged rollout of the personal plan-based funding system.

• Eligibility decisions: To follow consultation outcomes later this year.

• EGL expansion: Remains paused pending broader system stabilization.

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