Disability Funding Changes in NZ from 1 April 2026 – What Families Need to Know
From 1 April 2026, some important changes are happening to Individualised Funding (IF) and other flexible disability support budgets in New Zealand. These changes come through Whaikaha – Ministry of Disabled People, which manages Disability Support Services.
For many disabled people and their families, the changes are essentially a move back toward flexibility and common sense in how funding can be used.
Here’s a simple breakdown of what’s changing and what it means in everyday terms.
What This Means for Families
For many families, these changes should make the system a bit easier to navigate again.
In simple terms:
- There will be more flexibility in how funding is used
- The strict purchasing rules are gone
- Budgets stay the same
- Some larger purchases may still need approval
Overall, the goal is to make disability funding work better for the people it’s meant to support.
The Big Change: More Flexibility Returns
The biggest update is that the restrictive purchasing rules introduced in 2024 are being removed.
Those rules created quite a lot of frustration because they limited what families could buy with disability funding.
From 1 April, those restrictive rules are gone!
Instead, the main principle is simple:
Your funding should be used for things that support the disabled person and help them achieve the goals in their support plan.
That means families and individuals can again make more practical decisions about what actually helps in real life.
Your Funding Budget Is Not Being Reduced
Another big concern people had was whether their funding would be recalculated or reduced based on your previous use of funding. This no longer is the case.
The government has confirmed that existing budgets will remain the same on 1 April 2026.
So if you currently receive Individualised Funding, Carer Support, or a flexible Enabling Good Lives budget, your total funding amount should stay the same.
This change is mainly about how the funding can be used, not reducing the amount.
You’ll Still Have a Set Budget
Even though spending rules are becoming more flexible, people will still have a clear annual funding budget.
This means:
- you know how much funding you have available
- spending needs to stay within that amount.
This helps keep things predictable and easier to manage over time.
Some Purchases May Still Need Approval
Although the system is more flexible again, there are still situations where host provider organisations may need to approve purchases first.
This usually applies to bigger or unusual purchases.
Examples might include:
- overseas travel
- large pieces of equipment
- certain alternative therapies
- replacing items earlier than expected
Often there is an approval threshold (commonly around $1,500, although this can vary depending on the host).
Host Organisations Will Still Help Manage Funding
Most people using Individualised Funding work with a host organisation that helps manage the money.
These organisations can help with things like:
- paying support workers
- processing claims
- helping with budgeting
- keeping records
From April 2026, hosts may offer different levels of support depending on how much help someone needs managing their funding.
Some families manage things almost entirely themselves, while others prefer more guidance.
When These Changes Happen
The reforms are being introduced in stages.
1 February 2026
A new assessment system started for people applying for disability support for the first time.
1 April 2026
The flexible funding changes apply to people already receiving funding.
More updates to the disability support system are expected later in 2026.
Who These Changes Apply To
The April changes apply to people receiving:
- Individualised Funding (IF)
- Enhanced Individualised Funding
- Carer Support
- some Enabling Good Lives flexible budgets
However, they do not apply to Choice in Community Living packages, which operate under a different system.
Why These Changes Are Happening
The stricter rules introduced in 2024 were intended to control costs and standardise spending.
However, they also made it harder for families to tailor support to what actually works for the individual.
The 2026 changes are meant to restore a balance between:
- flexibility for families
- responsible use of public funding
The overall direction is to return closer to the principles of Enabling Good Lives, which focuses on:
- choice and control
- personalised supports
- flexibility
- supporting real life outcomes
Using IF to purchase Sensory Sam items.
On the whole its a win for flexibility of choice in purchasing items to help support people with disabilities, but the best process for approval is to REQUEST A QUOTE from Sensory Sam first, rather than purchase, only to have that purchase turned down by their providers, UNLESS its been pre approved.
We have a super easy ‘Add to quote’ button on our product pages, where you can create a wishlist, then submit, and we’ll send you a quote shortly after to submit to your provider for approval. Please contact us at hello@sensorysam.co,nz if you need any assistance doing so, we’re happy to help!
Further Articles
https://www.yourwaykiaroha.nz/learning-information/online-information-hub/our-news/changes-to-disability-support-services-what-you-need-to-know/
https://www.disabilitysupport.govt.nz/disabled-people/improvements-to-disability-support-services/flexible-funding-changes
https://www.ccsdisabilityaction.org.nz/news/turning-point-dss
https://www.facebook.com/MSDNewZealand/posts/from-1-april-2026-people-who-use-flexible-funding-through-disability-support-ser/1399916165500061/