Flexible funding

What is changing with flexible funding? 

There are several changes for people who receive flexible funding through NASCs. This will make flexible funding easier to use. 

• Purchasing guidelines, including the March 2024 changes, will be removed next year.   

• Disabled people will be able to choose how they spend their flexible funding to address barriers linked to their disability. 

• Flexible funding cannot be used to buy items such as alcohol, tobacco and gambling. 

• There will also be a short list of things that would need pre-approval, including overseas travel and one-off purchases over a set amount. 

The changes will be for people whose disability supports are co-ordinated by a NASC external. That's more than 90 percent of people who get disability supports from DSS.  

You will get a budget so you know how much you can spend.  We want you to be successful in managing your budget, and you will receive support and guidance to help you manage within budget. 

You should contact your NASC or Host if your needs change. 

At this stage, no changes are confirmed for services allocated by Enabling Good Lives (EGL) sites. We are working with the Regional Leadership Groups to explore how these apply to the EGL sites. 

Will I be able to buy what I want with my flexible funding? 

If you get flexible funding through a NASC, you will get more choice and control.  

You will need to keep your spending within your budget. Your spending will need to align to the personal plan developed with your NASC.  

We want you to have choice and control about how you spend your budget to achieve your personal plan. You will receive support to do this, while still retaining control of your budget. 

If you get your flexible funding through a NASC, the purchasing guidelines will no longer apply. 

Flexible funding cannot be used to buy items such as alcohol, tobacco and gambling. 

There will also be a list of things that would need pre-approval, such as overseas travel and one-off purchases over a set amount. This would need to be within your budget and align with your personal plan.  

What is a personal plan? 

NASCs will develop a personal plan with you to: 

• focus on what you want and need 

• address barriers linked to your disability 

• be clear on the purpose of the funding.  

If your support needs or circumstances change, get in touch with your NASC who can give advice specific to your needs.  

Hosts are well placed to provide guidance and support to you in making informed decisions. They will continue to provide support to you manage and monitor your spending against your budget.  

The support we want to see is along the lines of “coaching”, where you are supported to make decisions on spending your funding in line with your personal plan. Hosts are well placed to provide support, but we recognise that this may require changes in the approach to provide the support anticipated. 

How will my flexible funding budget work?  

If you are new to the system (from 1 February 2026), you will be given a budget following your assessment.  

If you are already using flexible funding, from 1 April 2026 you will be allocated an interim budget, based on how much flexible funding you have spent in the past.  

We want you to be successful in managing your budget. You will get support and guidance to help manage your budget. 

How will I find out the amount of my flexible funding budget?   

You will be advised next year, before any changes come into effect.   

If you’re already receiving flexible funding, your budget will be based on your actual spending in the past.   

Past spending will be based on the last two years from June 2023 to June 2025, which includes the period before 18 March 2024. This means budgets will reflect a fuller picture of your support.  

DSS is working to calculate how much funding each person currently using flexible funding will be allocated.  

This will take time as we want to make sure we are fair to everyone and consider different situations, such as where a person: 

• has had a recent change of circumstances or needs, or  

• is new to DSS and don’t have a long history of flexible funding use.  

How do you define a ‘current user of flexible funding’? 

A current user is someone who receives flexible funding now and up until 1 February 2026. 

If I am a new flexible funding user, how does this work for me? 

From 1 February 2026, if you are assessed as being eligible to receive flexible funding through a NASC for the first time, you will be advised of your budget following your assessment. 

Can I spend my flexible funding on travel and accommodation now? 

Not yet, the purchasing guidelines remain in place until 1 April 2026. 

Will my interim budget consider the purchasing restrictions put in place since March 2024? 

Past spending will be based on the last two years from June 2023 to June 2025, which includes the period before 18 March 2024, if you have been a flexible funding user for that long. This means budgets will reflect a fuller picture of your supports, not just the restricted period. 

Through the consultation we heard how important choice and control are. These changes are about enabling that through flexible funding, including informal arrangements such as respite, while also making sure the system remains sustainable. If you’d like to talk through your circumstances, your NASC can provide tailored advice. 

Can I continue to employ family members as support workers?  

If you currently employ family members to support you, this won’t change. 

Who will help me manage my flexible funding budget? 

You will get guidance and support to help manage your budget. This will make your flexible funding easier to use.  

Hosts will play a vital role in coaching and supporting disabled people and tāngata whaikaha to manage their flexible funding budgets, ensuring the lasts for the whole funding year. 

What is the timeline for changes? 

Timeline for changes | Disability Support Services external 

Why do I have to wait until 1 April 2026 for these changes to happen? 

We need a system that gives clarity, certainty, and choice. That means taking the time to get it right. The changes are significant and require work to ensure DSS processes, systems, and tools are well designed, properly implemented, and well understood.