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Disability Support Services

DSS operational policy

This page contains Disability Support Services operational policy documents.

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Assessment and Allocation of Disability Support Funding

This policy applies from 1 April 2026 and explains how needs are assessed, and decisions are made about disability support funding. It covers the process from preparing for an assessment through to agreeing funding and creating a My DSS Funding Plan.

It applies to people entering the system for the first time, those returning, and those who need their support reviewed. It also explains the roles of NASCs, Enabling Good Lives sites, and disabled people and their whānau, and how decisions are made in a consistent way across the country.

The aim is to make sure decisions are fair, consistent, and based on people’s needs — while keeping the system sustainable over time and helping people understand what to expect from the process.

Previous version

The above policy is updated from a previous version from February 2026, which provided direction to NASCs and Enabling Good Lives sites on the implementation of the new assessment and allocation requirements. The earlier policy can be found here:

Purchasing Operational Policy

This policy explains the rules for how flexible funding can be used from 1 April 2026. It sets out the conditions that must be met when using funding to buy supports, including what funding can be used for, what it cannot be used for, and when approval is needed before making a purchase.

It applies to people using flexible funding arrangements such as Individualised Funding, Enhanced Individualised Funding, Carer Support, Flexible Disability Support, and hosted Enabling Good Lives personal budgets. It also outlines the role of hosts, NASCs, EGL sites, and providers in supporting people to use funding appropriately.

Management of hosted flexible funding arrangements

Hosted flexible funding allows people more choice and control over how they use their funding, with support from a host to help them plan, manage, and keep track of spending in line with their funding plan.

This policy sets out when hosted flexible funding can be used, what support hosts provide, and the responsibilities everyone needs to meet. It also introduces a tiered support framework, which means people receive different levels of guidance depending on their situation and experience.

The aim is to support a consistent and sustainable approach to managing flexible funding, so people can use their funding flexibly while still meeting the requirements that keep the system fair and working well for everyone.

This policy was introduced on 1 April 2026. An updated version, effective from 5 October 2026, updates roles and responsibilities, introduces referral and commencement requirements, and strengthens privacy, information handling and record keeping requirements. It also includes the Host Service Agreement Declaration (formerly named Standard Agreement Declaration), which sets out the responsibilities of people using hosted flexible funding arrangements.

More information about the tiers of host guidance for managing flexible funding 

Previous version

The above policy is updated from a previous version from 1 April 2026. The earlier policy can be found here:

Verification of claims within hosted flexible funding arrangements

This policy replaces the ‘Guideline for verification of supports within hosted funding schemes: Disability Support Services Operational Procedures’ (except for Choice in Community Living). 

The document sets out roles and responsibilities in the claim process, and the process for verifying claims as part of hosted flexible funding arrangements, including requirements relating to support workers and disabled people allocated to Host Tier 1 under the host tier framework. 

Guideline for verification of supports

The revised guideline for verification of supports within hosted funding schemes external sets out accountability requirements for people who use a hosted scheme under Choice in Community Living.

The guidelines set out:

  • standardised verification requirements for host providers to help them verify that supports have been purchased/engaged
  • what evidence for expenditure people have to send to host providers when people claim for funding
  • standard declarations for claim forms and service agreements
  • a privacy declaration and privacy notice  externalfor support workers
  • record keeping requirements.

Supporting compliance within hosted flexible funding arrangements

This policy and procedures document replaces the ‘Restrictions on access to hosted budgets’ policy for hosted flexible funding arrangements. The document sets out a framework for managing concerns around the appropriate use of allocated funding, and the respective roles and responsibilities. 

Decision-making authority within hosted flexible funding arrangements

This policy applies when disabled people use agents or where they are found to lack capacity to make decisions relating to their use of hosted flexible funding. It establishes a presumption of decision-making capacity for disabled people, reinforces their right to participate in decisions affecting them, and clarifies requirements when they are supported by agents and others with legal authority to act on their behalf.

Recognition payments under Individualised Funding

A recognition payment is a payment given for administration work that is done on a voluntary basis on the disabled person’s behalf. The payment must be for reasonable expenditure incurred.

Circumstances where a recognition payment can be claimed

A recognition payment may be appropriate when an IF user relies on others to assist them to manage their funding, as acknowledgement of costs associated with that assistance.

Reasonable expenditure would include such general expenses as use of their own vehicle, use of their own office equipment, home office etc. in their role as a volunteer administrator for the disabled person.

If there is one agent assisting more than one IF user, a claim could be accepted for each IF user – with their agreement.

An agent should only claim once for one IF user regardless of funder.

Paying tax on a recognition payment

This falls within the scope of the exemption in section CW 62B Income Tax Act 2007 and is not in excess of reasonable and actual expenditure incurred by the caregiver annually. A recognition payment of $300 or less is exempt income to the agent under this provision.

When a recognition payment cannot be paid

Under some exceptional circumstances a host provider may also be the employer. In this situation, no recognition payment can be paid.

How much can be paid?

No more than $300 every 12 months can be claimed from an individual’s budget. This must be claimed with the IF user’s agreement, as an expense from the allocation as a cash payment and noted as a recognition payment.

No additional funding will be allocated to cover this claim.

Administration of the Community Group Home Pricing Model

From 1 December 2025, NASCs and Enabling Good Lives sites must adopt the Community Group Home Pricing Model when planning and funding residential support packages.

The Administration of the Community Group Home (CGH) Pricing Model Operational Policy outlines how the model works, who it applies to, and the responsibilities of NASCs, Enabling Good Lives sites and DSS in applying the model. 

Other policies related to the application of the CGH Pricing Model can be found here: Review Panel Terms of Reference (as of 1 December 2025)

Exceptional Circumstances when a Community Residential Support Service Provider Requests the Exit of a Service User

The Exceptional Circumstances policy external specifies the procedures to be followed by DSS personnel when a Community Residential Support Service Provider seeks to exit a service user from their residential home and when an impasse has been reached between the service provider and DSS.

These circumstances are regarded as exceptional and require DSS managers to promptly initiate and manage appropriate processes to fulfil DSS obligations to both the service user and the service provider.

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