Changes from 1 April 2026 will give more choice, control and certainty to people who use flexible funding.
The changes affect people who get flexible funding – including Individualised Funding, Carer Support and some hosted Enabling Good Lives Personal Budgets. The changes do not apply to (Choice in Community Living.)
The changes reflect feedback from the disability community during consultation in 2025.
From 1 April:
- People’s allocated budgets for flexible funding will continue the same as they are now.
- The purchasing rules for flexible funding will be removed.
- There will be more support to help people manage their flexible funding in line with their plan.
Allocated budgets
People’s allocated budgets for flexible funding will continue the same as they are now.
Earlier we said that we would set new budgets by looking at what people spent in previous years.
We no longer need to do that. We have worked to stabilise the system and we now have more confidence in the way that funding is being allocated and will be in the future.
Instead, people’s current flexible funding allocations will continue.
Purchasing rules
The purchasing rules for flexible funding will be removed from 1 April.
People must still use their flexible funding in line with their plans, but they will have more choice over what supports work for them – including respite options for carers.
People need to keep their spending within their allocated budgets.
Flexible funding still cannot be used for drugs, alcohol, tobacco, gambling or illegal activities.
A small number of purchases will need pre-approval– for example, international travel, or equipment – to ensure it is safe and right for the person’s needs.
Purchases over a set limit will also need pre-approval. For most people, this limit is $1,500. For a few people, who have frequent support from Hosts, this limit is $500.
Read more about pre-approvals and managing flexible funding from 1 April.
More support
There will be more support to help people manage their flexible funding.
Hosts will provide coaching and guidance for people who receive hosted flexible funding (Individualised Funding and some Enabling Good Lives Personal Budgets.)
The level of guidance people get will be based on their situation and experience managing their funding. For some it will be light touch while others will need active, frequent support.
A tier framework (four tiers) will set out how much guidance a person gets to manage their budget, claims, record keeping and (if relevant) employing support workers.
Hosts will be in touch with people from April onwards to talk about the guidance people need.
Read more about support tiers and managing flexible funding from 1 April.