Changes from 1 April 2026 will give more choice, control, certainty, and continuity for disabled 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. They 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 for flexible funding
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 the way people’s needs are assessed and funding is allocated.
This means people’s current flexible funding allocations will not change on 1 April.
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 few purchases will need pre-approval, such as:
- 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.
- 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 guidance for people who have hosted flexible funding (either Individualised Funding or hosted Enabling Good Lives personal budgets).
Support from Hosts can include guidance with planning, keeping records, budgeting, employing workers (if relevant), ensuring spending fits people’s plans and budgets.
The level of guidance people get will be based on their situation, experience and confidence managing their funding. For some it will be light touch, while others will need active, frequent support.
Hosts will be in touch with people from April onwards to talk about the guidance they need.
Learn more about the April changes
- www.disabilitysupport.govt.nz/dsschanges.
- Read the Minister’s announcement of 10 March: Choice, control and certainty through flexible funding | Beehive.govt.nz external