Flexible funding

Answers to questions on changes to flexible funding.

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Who do I contact if I have questions?

If you can’t find the information you need on the DSS website, talk to your host if you have one. If you don’t have a host, talk to your NASC or EGL site.

What is changing from 1 April 2026?

From 1 April 2026, the current purchasing rules for flexible funding will be removed, including the 2024 changes. This applies to:

  • Individualised funding
  • Enhanced Individualised Funding
  • Hosted Enabling Good Lives (EGL) Personal Budgets
  • Carer Support.

People’s allocated budgets for their flexible funding will not change.

Hosts will provide support to help people manage their Individualised Funding or hosted EGL personal budgets.

People with Carer Support continue to make claims through Health New Zealand.

Note that the purchasing rules still apply to Choice in Community Living – this is under review.

How do I know what I can use my flexible funding for? 
Is there an approved list of items or sensory items? 

Can flexible funding can be used for things like:
- activities like tramping or LEGO 
- overnight stays with disability tour groups as respite
- a trampoline for family with a child with autism
- domestic travel outside a person’s own region 
- travel for a carer or support person
- devices other than tablets
- counselling or therapy to support family wellbeing?

From 1 April, disabled people have more choice and control over how their flexible funding can be used.

There is no list of approved items, activities or services. The key question is does the thing: 

  • relate to the disabled person's disability support needs
  • align with the purposes in their funding plan
  • help manage the impact of the disability (for the person or their carer)
  • stay within their budget?

This means what the thing is USED for, may be more important than what it actually IS.
For example, supports might be used to help someone:

  • connect with others or take part in their community
  • build independence or skills
  • take a break from caring, or sustain their caring role.

Everyone’s situation is different, so what works for one person may not be right for another. If you’re unsure, talk to your host, NASC or EGL site — they can help you check whether something fits your plan and support needs.

Things to keep in mind:

  • Some purchases need prior approval, such as overseas travel, equipment, complementary therapies, or high-cost items.
  • You need to check if another government agencies can provide the service.
  • You cannot use flexible funding for drugs, alcohol, tobacco, gambling or illegal activities.

For more information go to Flexible funding from 1 April | Disability Support Services.

For examples go to Examples of using flexible funding.

What is meant by ‘equipment’ - in relation to equipment that needs prior approval?

When we’re talking about equipment that needs prior approval before using flexible funding, this is:

  • Tools, devices and products that support a disabled person’s functioning, independence, safety, or participation in daily life.

Can funding be used for therapy or support provided during school hours?

Where support may be available through another government agency such as Education or Health, people do need to explore that option first. However, if not suitable, then flexible funding could be used – as long as it’s in line with the purpose of their funding plan, budget and disability support needs. Your host, NASC or EGL site can help with this.

Will my flexible funding allocation change, re-set or reduce on 1 April?

No. Your current flexible funding allocation will continue as it is now. The April changes do not change people’s allocated budgets for flexible funding.

Does my budget period re-set on 1 April?

No – nothing about your allocated budgets for flexible funding changes on 1 April. They continue as they are.

Why are flexible funding budgets staying the same?

Earlier we said that we would set budgets by looking at what people spent in previous years.

Since then, our work to stabilise the system has given us confidence that we have measures in place that will ensure our funding is allocated fairly, consistently and sustainably.

This includes our February changes to assessment and allocation which mean that everyone receives the same service and approach to assessing their needs, no matter where they live.

What happens if I use up my allocation before the end of my budget period?

People need to manage their spending so it stays within their allocation and the purpose set out in their funding plan.

If required, your host will help you manage this by:

  • monitoring spending against your allocated budget
  • reviewing purchases with you
  • helping you plan how to use your funding over time. 

If your needs or situation change, you should talk with your host, NASC or Enabling Good Lives site, who can discuss whether your supports need to be reviewed.

If our funding was reduced during the past year based on the earlier changes, will this be able to be reinstated now? (All funding we were allocated has been used each year.)

We understand the past couple of years have been challenging for many people. The best place to discuss your disability needs and funding is with your NASC or EGL site. If your disability support needs have changed, talk to the NASC or EGL site about a reassessment. If you disagree with your funding allocation, you should again talk to your NASC or EGL site to try and reach a solution or seek a review of decision. All NASCs and EGL sites have processes for this. There is more information about seeking reviews or making complaints on the DSS website.

Will my plan change on 1 April?

No. If you use flexible funding, your current plan will continue – whether that’s an Individual Service Plan, Enabling Good Lives Funding Plan or My DSS Funding Plan.

Over time, everyone who gets flexible funding will move to the My DSS Funding Plan. This will happen at your next review or reassessment.

What is the My DSS Funding Plan?

The My DSS Funding Plan is part of the new, nationally-consistent assessment and allocation approach for DSS-funded supports, introduced in February 2026.

Over time, everyone who gets flexible funding will move to the new My DSS Funding Plan. This will happen at your next review or reassessment.

The My DSS Funding Plan helps you understand what funding you have, what the funding is intended for, and the outcomes the funding is meant to support. It helps guide and plan how your flexible funding is used.

Will annual reviews or reassessments be in person?

Annual reviews are usually not in person unless there is a reason for this.

Reassessments take place every 3 to 5 years, or when there is change in the person's disability needs. These are carried out in the way that bests suit the disabled person, whether that's in-person, or online, or over the phone.

Will the NASC share the provider rates and indicative funding ranges with the disabled person as part of the My DSS funding plan? 

The disabled person and/or their representative has the right to understand how their plan was developed. They should be provided with all information from their My DSS Funding Plan, including provider rates.

When the purchasing rules are removed, can people spend whatever they like?

No. Even though the purchasing rules will be removed from 1 April, flexible funding still comes with responsibilities. A few items are prohibited or require prior approval from host. People must:

  • use their flexible funding for supports that match the purpose in their funding plan
  • keep their spending within their allocated budget
  • keep records such as receipts, invoices, and any employment records if they hire support workers
  • provide receipts and invoices to their host
  • seek prior approval for some purchases.

For more information go to Flexible funding from 1 April | Disability Support Services.

What spending needs prior approval?

  • Overseas travel
  • Equipment 
  • Complementary therapies 
  • 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 the highest level of host support, the approval limit is $500.

For more information go to Flexible funding from 1 April | Disability Support Services.

What is the process to get prior approval for a large purchase or other things that need it? 

For Carer Support, prior approval is given by your NASC or EGL site.

If a purchase needs prior approval, the disabled person needs to discuss it first with their NASC or EGL site. If the NASC/EGL site gives full or part approval, they will send it in writing to the person or their carer. This should be attached to the claim for the Carer Support payments team.

For Individualised Funding or hosted Enabling Good Lives Personal Budgets, prior approval is given by hosts – so the disabled person needs to discuss the purchase first with their hosts.

What can flexible funding NOT be used for?

Flexible funding cannot be used for drugs, alcohol, tobacco, gambling or illegal activities.

Can I use flexible funding for supports that are provided by other government services?

Sometimes a support may also be available through another government service.

It is expected that a person and their host or NASC first consider whether these services could adequately provide the support, before deciding to use flexible funding. The spending still needs to match the purpose of their plan and their disability needs.

This doesn’t mean you can’t use flexible funding - it just helps you make the best use of your available funding.

Your host, NASC, or EGL site can help you look at the options and record what’s been considered.

Will the Community Services Card requirement still apply for what was previously Household Management funding?

There is still a requirement to have a Community Services Card to receive an allocation of Household Management.

Can I continue to employ family members as support workers?  

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

Why don’t these changes apply to Choice in Community Living?

We are looking at Choice in Community Living separately and no decisions have been made yet.

What will my host do?

Hosts provide guidance, coaching, and oversight for people who have hosted flexible funding (either Individualised Funding or hosted EGL personal budgets).

Hosts provide different tiers of support depending on the person’s situation.

Support from hosts can include guidance and coaching with planning, keeping records, budgeting, employing workers (if relevant), and ensuring spending fits people’s plans and budgets.

For more information: Tiered host guidance for managing flexible funding

What are the support tiers?

Support tiers describe how much help you receive from your host to manage your flexible funding. There are four support tiers. Everyone receives some support. The tier simply reflects how much guidance you may need.

For more information: Tiered host guidance for managing flexible funding

Why are support tiers being introduced?

Support tiers help make sure people receive the right level of support to manage their funding confidently. For some people this will be light‑touch support, while others may have more frequent guidance.

For more information: Tiered host guidance for managing flexible funding

Will my support tier affect how much funding I receive?

No. Your support tier does not affect how much funding you receive. It only affects the level of guidance your host provides, and how frequently they check in with you.

For more information: Tiered host guidance for managing flexible funding

How will my support tier be decided?

Your support tier will be based on things like your experience managing flexible funding, how much funding you receive, and how much guidance you need.

Your support tier can change over time if your situation changes or if you need more or less guidance. The goal is to provide the right level of help for your situation.

For more information: Tiered host guidance for managing flexible funding

What if I don’t want support from a host?

Everyone who uses hosted flexible funding will receive some level of support from their host. This helps people manage their funding, keep records, and make sure spending stays within their allocated budget and funding plan.

For many people, this support will be light touch. The level of support depends on a person’s support tier, which reflects things like their experience managing flexible funding and their situation.