As part of Budget 2025 announcements tomorrow, we can expect to hear more about how this government intends to reshape the way social services are delivered across New Zealand. Over the last week, Social Investment Minister, Nicola Willis, and Chief Executive, Andy Coster, reiterated the vision of this government to move away from fragmented contracts and compliance-heavy funding models, towards a future that is data-driven, outcomes-focused, integrated, and locally driven. In a fiscally constrained environment, the emphasis is on “better value for money” – that is, improving outcomes for all New Zealanders, minimising the need for government interventions, with the idea that this lowers costs in the longer-term.

The “star” of this Budget may therefore be the new Social Investment Fund, announced last week. Budget 2025 commits $190 million to establishing the new fund. So far, we know that the fund will:

1. support at least 20 initiatives in its first year
2. compare the value of different investments in achieving meaningful outcomes
3. identify life stages where interventions can create the most significant impact
4. support early intervention and prevention
5. focus on outcomes for families (not just individuals), and
6. embrace holistic, locally designed support.

These announcements signal changes that will play out over the coming year. For social service providers, the aim is to reduce administrative burdens, evaluate initiatives from the start, and employ contracts that enable collaboration. For organisations that demonstrate impact, the idea is that there will be fewer hoops to jump through and more room to innovate – which may prove useful for those working in critical areas of unmet needs.

For public sector agencies, the social investment approach will reward those who can measure impact, adapt quickly, and collaborate effectively. Data capability, evidence of outcomes, and a willingness to work across traditional boundaries (both within and outside of the public service) will be key ingredients for future funding and success.

We are always keen to chat about what this shift might mean for your organization and explore how we can help. Contact us today at hello@frankgroup.co.nz.

For the Social Investment Minister’s announcements on the fund, see here.

For Andy Coster’s Social Investment interview with Jack Tame, see here.