Changes Coming to Disability Flexible Funding Support: What you need to know

Following a nationwide consultation earlier this year,  The Government has announced important changes to the way Disability Support Services (DSS) will be assessed and funded, commencing February 2026. 

We know the past year has been a challenging time while consultations and reviews were underway and our thanks go to our staff and customers who participated in the consultations. These announcements now provide clarity about what will happen next, when changes will take effect, and what it means for people using disability supports. 

Key Changes 

• More choice and flexibility 
  Disabled people will have more control over how they use their flexible funding. Purchasing guidelines will be removed, meaning people can choose how best to use their budget to address disability-related needs. A small number of restrictions will remain (for example, on alcohol, tobacco, and gambling). 
• Budgets instead of guidelines 
   Instead of following purchasing rules, people will be given a budget to manage. Guidance will be available to help individuals and families plan and stay within their budget. 
• Consistent assessments nationwide 
   All Needs Assessment and Service Coordination (NASC) organisations will use the same process, so decisions are fairer and more consistent no matter where you live. 
• Including families and carers 
   Assessments will also take into account the role of families, whānau, and carers, and provide support where relevant. 
• Personal plans 
   Every disabled person will have a personal plan developed with them, focusing on their goals, needs, and the purpose of their support funding. 

Timeline for Changes 

• From 1 February 2026 
  • People new to disability support services will be assessed using the new system. 
  • Reassessments for existing clients will pause until October 2026 (unless urgent). 
• From 1 April 2026 
  • People already using flexible funding will be allocated a budget. 
  • Budgets will be informed by how much funding a person has used in the past (between June 2023 – June 2025). 
  • Purchasing guidelines (including the March 2024 changes) will be removed. 
• From 1 October 2026 
  • Regular reassessments resume. 
  • Personal plans will be introduced for all people receiving DSS. 

What About Enabling Good Lives (EGL) Sites? 

At this stage, no changes are confirmed for EGL sites. The Government will continue working with EGL Regional Leadership Groups to explore improvements tailored to each region. 

Next Steps 

If you currently receive support, you do not need to do anything right now. The transition period allows time for NASCs, Hosts, disabled people, and families to prepare for the changes. 

For more information, including the Minister’s announcement and consultation feedback, visit the official Disability Support Services website. 

As always, the Independent Living team are here to help you. So if you are not sure if these changes will affect you, give us a call. We may not have all the answers, as details are still being finalised, but through our monthly newsletter, we will keep you up to date as further announcements are made.