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Quick 101 on this year's budget and disability

Our Government just announced a $1 billion increase in funding for disability services over the next four years.


May 23rd, 2025

The Beehive and parliament building with the words Budget 2025 and disability imposed over them

What does this look like for our disability community? It can be a bit confusing with all the numbers flying around and the difference between planned budgets and actual budgets.  

What was confirmed for spending 1 July 2025 – 20 June 2026? 

There will be an extra amount of $60 million into residential care for our disability community. (Bringing the annual total spend by our Government on residential services to $1.06 billion each year).  

There will also be an extra $190 million for other areas in Disability Support Services. This makes the total extra new spend for Disability Support Services $250 million. 

Read more about Disability Support Services 

What have they said this extra money will go towards?  

  • Community residential care.  

  • Home and community support services – support with household management, personal care, respite care, and other similar supports for disabled people living in their own home. 

  • Environmental support services – supporting disabled people to navigate their everyday lives, for example: assistive communication technology, wheelchairs, home and vehicle modifications, and hearing and vision services. 

  • High and Complex Framework – this supports people with an intellectual disability who have committed a crime and are in secure or supervised care. 

  • Needs assessment, disability information advisory services, and supports which connect disabled people to the services that they need.  

Where does the budget money come from? 

Each May, the Government announces the national budget for the next financial year (1 July to 30 June). The money in the budget comes from taxes, loans, and other income streams. What money is allocated to changes each year depending on the priorities of the Government of the time. Sometimes the Government will take money previously budget for something and allocate it for something else.   

The total annual budget for Disability Support Services (which includes all the services in the bullet pointed list above and a few more) is now set by our Government at $2.75 billion dollars. 

The Government has allocated $1 billion in new funding for Disability Support Services, including $240 million for residential care, over the next four years.  

Disability Issues Minister Louise Upston shared that this new funding will be on top of the more the $2.5 billion the Government currently puts into disability support annually.  

Take a look at what our Disability Issues Minister Louise Upston says about this budget update at this link "Improving care for disabled New Zealanders | Beehive.govt.nz" 

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