Disabled People Gain More Choice and Control as Flexible Funding Rules Are Removed

From today, disabled people with flexible funding will gain more choice and control over their supports, with purchasing rules removed and guidance available to help people manage their budgets.

Minister for Disability Issues Louise Upston says restoring flexibility is possible because of action taken since 2024 to stabilise the disability support system so it can sustain supports into the future.

We’re not claiming the job is done. These are only first steps, but we have tackled long-standing and critical problems, to provide stability, predictability, and consistency of supports. This has laid the groundwork for further long-term, positive change for disabled people, their whānau and carers.

The 2024 Independent Review confirmed long‑standing issues in the disability support system. The system struggled to track or forecast costs, and oversight was limited.

The review also found unclear criteria and processes for people to access flexible funding created an ‘inequitable and unfair’ postcode lottery for disabled people around the country and contributed to increasing costs.

This Government took action to stabilise the disability support system.

We began by listening. Through extensive consultation with disabled people, whānau, carers, providers, and advocates, we heard people want a fairer, clearer, more consistent system that recognises their needs, gives them choices and supports good lives.

Disabled people nationwide now experience one consistent approach to assess their needs and ensure supports are allocated fairly and consistently – no matter where they live. Support for families’ and carers’ needs can also now be part of the assessment.

DSS has also built stronger budgeting and financial controls and simplified pricing and contracting for residential providers. Together these improvements help ensure funding is being used effectively to support disabled people, families, whānau and carers. Since 2024, the Government has invested $2.1 billion of additional funding into the disability support system.

The 2024 purchasing rules were a difficult but necessary decision to limit unsustainable cost increases over several years – and I acknowledge the past couple of years have been challenging for many disabled people, their families and carers.

All of this work and investment has built a more stable and sustainable disability support system.  Today, we can now responsibly remove the purchasing rules, keep people’s flexible funding budgets at current levels and provide clear guidance to help people manage their funding.

This gives disabled people, whānau and carers more choice, certainty and control to use their flexible funding in ways that work for them and their disability support needs – including respite options for carers, Louise Upston says.

Editors’ Notes From 1 April 2026: The purchasing rules, including the March 2024 changes, will be removed.

Flexible funding budgets will stay at each person’s current allocation level.

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 drugs, alcohol, tobacco, gambling and illegal activities.

. A small number of purchases will need pre-approval. For example, international travel equipment, complementary therapies or one-off purchases over a set limit.

There will be extra guidance to plan and manage budgets for people with Individualised funding and some hosted Enabling Good Lives personal budgets. The guidance people get depends on their situation. Hosts will be in touch with each person from 1 April onwards about this.

There is information on the DSS website: Flexible funding changes | Disability Support Services