New analysis warns health funding increase will barely maintain current system
Kaitiaki Hauora has released new economic analysis ahead of Budget 2026, warning New Zealand’s public healthcare system remains significantly underfunded, with planned increases in health spending unlikely to meaningfully improve access to care.
The analysis found New Zealand spends around $1.1 billion less per year on health than comparable OECD countries with similar public healthcare systems.
The Government is expected to announce around $1.370 billion in additional health funding for the coming year, equivalent to $5.48 billion over four years. However, the report shows much of that increase is likely to be absorbed by rising costs, population growth and demographic pressures.
A pre-Budget Cabinet paper also indicates new and expanded services are expected to be funded from within that same allocation.
That means many existing services are likely to remain under pressure, with current challenges across the health system expected to continue or intensify.
People are already struggling to access GPs, workforce shortages continue across healthcare, and more patients are receiving treatment later, when conditions are more serious and more expensive to manage.
Adult dental care remains unaffordable for many New Zealanders, while Māori health services continue to face inequities in funding and access.
Our analysis points to a longer-term pattern of health funding failing to keep pace with the real cost of delivering care and meeting population need.
Budget 2026 will show whether the Government intends to significantly improve access to healthcare, or largely maintain a system already operating under considerable strain.
Media coverage
The report has already generated national discussion around health funding, system pressures and what Budget 2026 is likely to mean in practice.
RNZ
RNZ’s coverage focused on Kaitiaki Hauora’s analysis showing that around $1.405 billion in additional health funding is needed in Budget 2026 just to maintain current levels of service. The story also explored how New Zealand compares internationally on health spending, and included commentary from health economists and policy experts on workforce pressures, primary care investment and long-term system sustainability.
Read the coverage here
RNZ also featured Kaitiaki Hauora’s Budget 2026 funding analysis in radio news bulletins throughout the day, highlighting concerns that the planned health funding increase may do little more than maintain existing services. The coverage focused on growing system pressures, international health spending comparisons and warnings that ongoing underinvestment is continuing to affect access to care across the country.
NZ Doctor
NZ Doctor’s coverage examined Kaitiaki Hauora’s warning that the projected $1.37 billion increase in health funding is unlikely to keep pace with rising costs, population growth and healthcare demand. The story also highlighted wider funding gaps across primary care, hauora Māori, workforce capacity and dental health, alongside concerns that underinvestment is placing increasing pressure on frontline services and access to care.
NZ Doctor is an industry title for subscribers. If you are a member, you can read the story here.
Pharmacy Today
Pharmacy Today covered Kaitiaki Hauora’s analysis of Budget 2026 health funding pressures, including concerns that the planned funding increase will largely be absorbed by inflation, workforce costs and growing demand across the health system. The coverage also explored the downstream impact underfunding is having on primary care, prevention services and equitable access to healthcare.
Pharmacy Today is an industry title for subscribers. If you are a member, you can read the story here.
Big Hairy News Podcast
The report was also discussed on Big Hairy News, where hosts Pat and Chewie were joined by Dr David Galler and Dr Bill Rosenberg for an in-depth conversation about the findings. The livestream unpacked the key funding gaps, healthcare priorities and what the Budget 2026 numbers are likely to mean in practice, with more than 500 viewers actively engaging in the live chat discussion.