Government denies plans to means-test disability support after controversial bill sparks concerns

Tuesday, 2 June 2026

The government has denied plans to means test disability support after introducing a bill that says support must be used form family members first.

Disability Minister Louise Upston introduced a bill last month and carers say it is “unfair”and “disgusting.”

Upston said she has also heard concerns about whether the bill will introduce means-testing for disability support. She said it will not.

Government ministers say they have no plans to means-test disability support after introducing a bill that expects disabled New Zealanders to use resources and support available from family members first.

Disability Minister Louise Upston introduced a bill last month that will legislate a framework for the disability support services already provided by the Ministry of Social Development.

While she said the new law is “intended to make it easier for disabled people to understand what support is available”, the move has proved controversial due to its overruling of a recent Supreme Court decision recognising family carers as ministry employees.

Carers told Stuff the proposed legislation is “unfair” and “disgusting”, and will increase uncertainty around the support available.

Upston confirmed on Tuesday that she has also heard concerns about whether the bill will introduce means-testing for disability support. She said it will not.

“This Bill doesn’t change current eligibility and access settings for disabled people, families or carers. Income and asset testing have long been used for some DSS supports, such as home modifications and equipment,” she said.

“What the Bill does is provide for current practice. Income and asset testing is not used for personal care or carer support and there are no plans to expand its use.”

Prime Minister Christopher Luxon, when asked on Tuesday, also said means testing disability support is “not our plan”.

The source of the concerns appear to stem from two clauses in the bill. The first is titled “Principles that Ministry and contracted providers must take into account when making decisions about provision of DSS-funded disability support services”.

It introduces two principles:

– where appropriate, families, whānau, and other culturally recognised family groups have responsibility for their whānau in the first instance; and

– before being provided with government-funded disability support, the recipient should (where appropriate) use their resources and other support available to them from family, their community or other publicly funded sources.

The bill does not elaborate on the circumstances in which it may be deemed appropriate for disabled New Zealanders to rely on family for support.

But it does define family - broadly. “Family member” for the purposes of this bill includes immediate family, step- and half-siblings, grandparents, grandchildren, uncles, aunts, nephews, nieces and first cousins.

Disability advocate Huhana Hickey told Stuff that these principles move primary responsibility for supporting disabled New Zealanders onto their family, which is unfair.

“We should be looking at disability like we look at superannuation,” she said. “If someone becomes disabled by accident, they get compensation, rehabilitation, home modification, equipment, all of that. It varies in how good it is, because that’s ACC, but there’s nothing like that for medical disabilities at all.”

She said people with medical disabilities “face poverty all the time” because of the costs associated with care, equipment and everything else needed to function.

Rebekah Graham, the national executive officer of Parents of Vision Impaired NZ, acknowledged the need for a bill underpinning the disability support services framework.

The issue with this one, she said, is that it leaves it open for any future minister to income- or asset-test disability support.

That’s the second clause of the bill causing concern.

Clause 11 will allow the disability minister to develop and implement programmes for the purpose of providing disability support services. Those programmes could determine who is eligible for support, any eligibility criteria and any conditions that may be tied to it.

Income- and asset-testing are explicitly named as possible criteria.

“This bill allows any minister to, with the stroke of a pen, implement any programme so that someone could be means tested or asset tested,” Graham said. “It may not be [Upston’s] intention to means test now, but will mean a minister down the line could decide residential programmes are costing too much money and they will asset test them from now on.”

Graham described the bill as “unsafe” for the disabled community, because of the uncertainty that generates.

As for Upston’s comment that some income and asset tests already exist for certain supports, Graham described her comment as “disingenuous”.

“What she’s referring to there are things like the requirement that if you receive home management, you have a community services card,” she said.

While some supports are and should be targeted, Graham said limiting criteria for disability support or imposing conditions should not be able to be introduced “with the stroke of a pen”.

Consultation underway

Separately to this legislation, the Government also announced on Tuesday a consultation on the disability supports that are currently available. This is the substantive part - what support disabled New Zealanders can actually get.

Upston said this will allow them to ask “the disability community how we can further improve key service areas so they’re more effective and responsive”.

Hickey, however, sees this as another attempt to cut costs.

“They use words like “sustainable” and “consistency”, which are hidden terms for, ‘oops, this is costing too much’,“ she said. 'DSS reforms are always primarily focused on cost control. Purchasing rules get tightened, but we need to have that flexibility available to us because no two disabled people are the same.”

Upston said she encourages people to submit on the Bill, which is currently before the social services select committee. Submissions close on June 12.