Factsheet: Funding freeze on residential care lifted on 1 July 2025
Following the 2024 Independent Review of Disability Support Services (DSS), funding for residential care was frozen. As part of Budget 2025, the Government confirmed the funding freeze will be lifted from 1 July 2025.
On this page
Needs Assessment and Service Coordination organisations (NASCs) and Enabling Good Lives (EGL) sites need to prioritise entry to residential care to those with the highest need within their available budgets.
The freeze did not refer to the number of people who could access residential care. Disabled people continued to come into and leave residential care services.
DSS funds services and support for about 50,000 disabled people, including about 7,200 people who live in residential care. It also funds a range of other services including equipment, home and vehicle modifications and Child Development Services.
About half of all DSS funding is spent on residential care
What lifting the funding freeze means for disabled people
When the funding freeze is lifted, disabled people are unlikely to notice any immediate changes.
NASCs and Enabling Good Lives sites will continue to be responsible for prioritising decisions on residential care packages.
They will also continue to hold responsibility for determining:
- if you meet eligibility for DSS support, and
- what that support looks like – it may be residential, or it may be at home in the community, with the right support.
Your NASC or EGL site are there to work collaboratively with you and your whānau to help you access the supports you need.
If you have concerns about the services and supports you, or someone you care for, receive, please contact your NASC or EGL site. They will be able to discuss this with you.
DSS is committed to making future improvements. This includes strengthening the quality and safety of disability support services, and providing more options for disabled people who are looking for residential care.
What lifting the funding freeze means for NASC and EGL sites
NASCs and EGL sites will still need to prioritise supports and services to those that need them the most.
When the pricing freeze is lifted NASCs will have more flexibility to work with disabled people and their families to find the best options to suit them, whether these are in the community or residential care.
Will there be changes to NASC and EGL budgets?
NASC and EGL site budgets will be confirmed following the Government’s annual Budget announcements in May 2025.
Find out more
More information on the Community Group Home Pricing Model, is available on our website: www.disabilitysupport.govt.nz/cgh external.
Alternate formats
- externalAudio: Factsheet - funding freeze on residential care lifted on 1 July (MP3 1.6 MB)
- Braille: Factsheet - funding freeze on residential care lifted on 1 July (BRF 3 KB)
- Easy Read: Factsheet - funding freeze on residential care lifted on 1 July (DOCX 4.2 MB)
- Easy Read: Factsheet - funding freeze on residential care lifted on 1 July (PDF 1.4 MB)
- Large Print: Factsheet - funding freeze on residential care lifted on 1 July (DOCX 90 KB)
- NZSL: Factsheet - funding freeze on residential care lifted on 1 July external
More alternate formats for this factsheet have been commissioned and will be uploaded as soon as they are available.