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While the matter of healthcare funding is a complex topic, there is a short version that we ask people who are interested to know. Thursday’s announcement is likely to produce large-sounding numbers for our public healthcare system funding. But these numbers are unlikely to improve access to care. From what we are expecting, all of the additional day-to-day (operational) funding will be absorbed by rising demand, inflation, workforce costs and existing system pressures. That means, how you are experiencing healthcare now, is unlikely to change. Our analysis estimated around $1.405 billion in new annual health funding would be needed simply to maintain existing services and keep pace with current cost, population and aging pressures. That is before any improvements or expansion of services. Why does this matter? Because Budget announcements are often framed around large multi-year numbers that sound transformational at first glance. But the key question is not simply “how much money was announced?” The question should be: What does that funding actually buy once existing pressures are accounted for? In recent weeks, the Government has announced a small number of pre-Budget health commitments, including:
• $15.5 million over four years for a national paediatric palliative care service
• $35 million over four years for ambulance services These are important investments for the people who benefit from them. But they do not relieve the major gaps in many parts of the system which our analysis demonstrates. They will compete for funds with the existing system cost and population pressures. On Budget Day, we encourage people to look beyond the headline figures and ask:
• Will this funding significantly improve access to care?
• Will it reduce unmet need?
• Will it ease workforce shortages and burnout?
• Or will much of it simply maintain services already under strain? Healthcare is now consistently ranked among New Zealanders’ top concerns. People are feeling the impact of delayed care, difficulty accessing GPs, workforce shortages and growing pressure across the system. The system is faced with the impact of not only insufficient historic funding but the impact on New Zealanders’ health of low incomes, poor housing, poor nutrition and other economic and social determinants outside the health system. We’ll be sharing further analysis and commentary following the Budget announcement. In the meantime, you can read the full Kaitiaki Hauora pre-Budget 2026 analysis here:
https://kaitiakihauora.nz/read-our-report We encourage you to read up, understand what is being said, and talk about this with your friends and whānau. And remember, the funding of healthcare is a political choice. So is the under funding of healthcare. Ngā mihi,
Kaitiaki Hauora
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