The changes will take effect from 1 April 2026 and will affect people who receive flexible funding – including Individualised Funding, Carer Support, and some hosted Enabling Good Lives Personal Budgets. They do not apply to Choice in Community Living.
The changes mean that allocated budgets remain the same, reflecting assessed needs (rather than resetting based on what people spent in previous years). The purchasing rules that have been in place since 2024 will be removed.
If you are receiving Individualised Funding, your host will contact you. If you receive Carer Support, the process remains the same; however, you now have flexibility on how you use those funds.
You don’t need to do anything to get ready for these changes. Your Host, NASC or Enabling Good Lives site will continue to support you, and your current arrangements remain in place.
From 1 April:
- People’s allocated budgets for flexible funding will remain the same as they are now; they will not be set based on what people spent in previous years. This means people’s current flexible funding allocations will not change on 1 April, but may change when reassessments begin on 1 October 2026.*
- The purchasing rules for flexible funding will be removed. People must still use their flexible funding in line with their plans (Individual Service Plan, Enabling Good Lives Funding Plan or My DSS Funding Plan), but there will be more choice over what supports work for them – including respite options for carers. Purchases that will need preapproval:
- Overseas travel
- Equipment – to confirm it is safe and right for the person’s needs
- Complementary therapies that are not publicly funded
- Repeat purchases of similar items before the expected life of the item has expired
- One-off purchases over the approval limit. For most people, the approval limit is $1,500. For a few people who have frequent support from their Host, the approval limit is $500.
- There will be more support to help people manage their flexible funding in line with their plan. Hosts will provide guidance for people who have hosted flexible funding (either Individualised Funding or hosted Enabling Good Lives personal budgets). Hosts will be in touch with people from 1 April onwards to talk about the guidance they need. There will be 4 tiers of support. Read more here.
- Please note that people receiving Carer Support should continue to make their claims as normal through Health New Zealand, but they may be asked to provide additional information, such as receipts or invoices, when they make a claim.
Read a further update from 1 April
If you have questions about your own situation, your Host, NASC or Enabling Good Lives site is the best place to talk through what this means for you.
You can find more information here. And here March/April 2026 Factsheet
*Reassessments are still paused until October, but if you require an urgent reassessment (e.g., your situation or support needs have changed), contact your NASC or EGL site to request a review.
