Funding boost for aged residential care sector

A funding boost will strengthen aged residential care services and improve support for older New Zealanders, Health Minister Simeon Brown and Associate Health Minister Casey Costello say.

“Older New Zealanders deserve access to safe, quality care that meets their needs and supports them to live with dignity,” Mr Brown says.

Health New Zealand will provide a 4 per cent funding uplift worth approximately $79 million to aged residential care providers for 2026/27.

“This investment will help providers improve access to aged residential care and support better care for older New Zealanders.

“We know demand for aged care services is growing as New Zealand’s population ages. This investment will help providers respond to that demand and continue delivering quality care for older New Zealanders.”

The funding includes a 2.66 per cent base increase, alongside targeted investment to improve service delivery, strengthen responsiveness to demand, and enhance access to care.

Mr Brown says a key focus of the package is helping older people move more quickly into the care setting that best meets their needs.

“A central part of this investment is supporting timely, clinically appropriate admissions into aged residential care, including over weekends where it is safe to do so.”

Historically, weekend admissions from hospital into aged residential care have not been a common feature. Under this funding package, providers will be expected to support admissions over weekends where it is clinically appropriate and safe to do so.

“Too often, older people remain in hospital longer than necessary while waiting to transition into residential care, contributing to delayed discharges and reducing capacity for other patients who need hospital treatment.

“Helping people move into the right care setting sooner can improve patient outcomes, reduce pressure on hospitals, and ensure beds are available for those who need acute and urgent care.

“It will also support better continuity of care and a more joined-up experience for patients and their families.”

Ms Costello says the investment complements broader work already underway to modernise aged care services and ensure they remain sustainable as demand grows.

“We know the current aged care model is out of date and needs to evolve to meet the needs of New Zealand’s ageing population, with reform work underway,” Ms Costello says.

“This investment supports those longer-term reforms while also delivering practical improvements now and we appreciate the sector’s engagement in both processes.

“While there is more work ahead, with the Aged Care Ministerial Advisory Group to deliver its report to Ministers in the next few weeks, the funding uplift provides additional support to the sector as we work through the reform process.

“New Zealand has a strong aged care sector, supported by dedicated providers and staff who deliver quality care every day. This funding will help services remain responsive to growing demand while we continue the work needed to build a more sustainable system for the future.

“This is about strengthening support for older New Zealanders and their families, improving access to care, and ensuring the sector is better placed to meet future demand.” ...