Review of Disability Support Reforms

This is a response by SDS Network Aotearoa to the New Zealand Government's planned reforms of the disability support system. SDS Network Aotearoa is the national hub of the global SDS Network which works to increase the scope and quality of systems of self-directed support.

On behalf of the Self Directed Support Network Aotearoa (SDS Network Aotearoa), I am writing to formally acknowledge the Government’s announcement on 3 September 2025 regarding the changes to the Disability Support Services (DSS) system—as delivered by Minister for Disability Issues, Hon Louise Upston.

These reforms are much welcomed and reflect the voices of the disability sector as we hoped would be the case. They address many concerns and values we have long advocated for. However while they represent a promising step forward, we believe a number of essential considerations and questions remain, and would like to register our position on these, and table an offer of assistance to address them as is relevant and required.

What the SDS Network Aotearoa Welcomes

1. Restoration of Flexible Funding


We enthusiastically welcome the removal of the March 2024 purchasing guidelines. Restoring comprehensive discretion for disabled people to manage their own support within a defined budget aligns with SDS Network Aotearoa’s principle of self-directed choice and autonomy.

2. Standardised Assessments and Equity


The mandate for NASC organisations to adopt a consistent national assessment process marks an important stride toward fairness and transparency throughout Aotearoa.

3. Inclusion of Whānau and Carer Needs


Acknowledging and assessing family and carer needs within the allocation process responds directly to advocacy led by our network and others, supporting sustainability and resilience within home-based care arrangements.

4. Responsive Consultation


These shifts arise from the consultation you conducted with input from many disabled people, families, and carers, illustrating a collaborative and inclusive process reflecting lived experience. We appreciate the authenticity of the process and the honouring of “nothing about us without us”.

Concerns & Further Questions

While these developments are encouraging, several critical issues and questions arise and require further attention.

1. Risks of Reduced Support without a needs based approach in the immediate future


Without a needs based approach, reallocating or limiting funding strictly to past spending levels risks decreasing support for those who previously under-spent due to restrictive guidelines or systemic barriers. SDS Network Aotearoa strongly urges assurance that support will continue to be based on real need, and that no individual will experience reduced overall support when it is required under this transition.

2. Spending-Based Budget Allocation drives inequities and incentivises reactionary expenditure


Basing budgets on historic spend (June 2023–June 2025) disadvantages those who were unable to spend in full under restrictive directives. Additionally when people know that they need to “use it or lose it” – they are incentivised to spend even if they don’t have an immediate need for fear of losing it for an coming allocation period. Needs based adjustments or supplementary provisions are needed to avoid penalising people who deferred spending for valid reasons.

There is a concern in the sector that flexible budgets will be actively and intentionally reduced in the interest of budget containment. Again, we urge MSD to commit to an authentic commitment to a needs based approach to allocation, with an assurance to the sector in this respect.

3. Uncertainty related to Enabling Good Lives (EGL) Sites


The exemption of EGL sites from these reforms introduces uncertainty around the concept of consistency and equity that we understand to be fundamental principles driving these reforms. . We urge priority planning to integrate EGL principles in all aspects of these reforms, ensuring consistent innovation and autonomy across all systems.

4. Plan based expenditure

We fully support the plan based approach to purchasing and support.

It is imperative in our view that intentional planning and purpose focused spending needs to be funded separately and formally structured. This will ensure equity and person focussed capability building is the outcome. We do not believe it is best placed with the NASCs because of the overlapping remit of budget allocation as well as the requirement for training, and resource constraints. An independent approach to planning that identify both paid and unpaid supports enables disabled people and their families to identify their preferences, strengths, aspirations, needs and support networks.

Additionally, in alignment with the principles of EGL, to enable choice, control and flexibility, we hope that people will be enabled to have choice in how they develop their plans, and who they commission to support them to develop them.

5. Further Questions

The SDS Network Aotearoa raises the following questions as requiring response back to the sector.

• What will happen with Carer Support – because it was subject to the same restrictions as Individualised Funding and flexible budgets after the March 18 changes?
• Will the Verification guidelines remain and/or what will be the system to support evidence of purchasing, and will it be consistent across budget types?
• If the rules are open – what will be the role of Coaching and Hosts?
• What are the thresholds/criteria for “sensitive purchases”?
• How will purchasing be monitored or will it, and who will manage compliance and consequence when someone purchases outside the plan?
• There are training issues that need to be addressed under these reforms – for example - planning, purchasing, sensitive purchasing, budget management principles etc. Are there plans for this and if so can they be shared with the sector?

SDS Network Aotearoa’s Commitment

SDS Network Aotearoa will continue to work constructively alongside DSS, NASCs, and advocacy bodies to:

• Monitor implementation and ensure transparent communication of changes.
• Advocate for supplementary funding and safety nets for those disadvantaged under a spending-based model.
• Support inclusion of EGL framework integrity and principles in future DSS policy.
• Ensure full and transparent communication and clear positive dialogue between all stakeholders in the sector.

In Summary

We sincerely affirm that the Government’s policy shift toward restoring autonomy, implementing fairness, and engaging meaningfully with community feedback are foundational to a just and person-centred disability system.

Nevertheless, to realise the full intent and promise of these reforms, we urge:

• Safeguards against funding losses.
• Equitable budget-setting practices.
• Inclusion of EGL pathways into the redesigned system.
• Appropriate training and resourcing to support implementation of an independent and objective plan based approach.

We offer assistance in whatever is required to implement these reforms authentically across New Zealand, and look forward to continuing our dialogue to ensure these welcomed reforms translate into meaningful, equitable change for all disabled people in Aotearoa.

Ngā mihi nui,

Marsha Marshall


Chair, Self-Directed Support Network Aotearoa (SDS Network Aotearoa)