Press Release - Budget 2026

The Mental Health Foundation (MHF) says Budget 2026 risks putting pressure on mental health services and undermining the foundations of good wellbeing at a time when many New Zealanders are already facing long waits for support, housing insecurity and cost-of-living pressures.

The MHF acknowledges targeted investments in health and social services in Budget 2026, including a $5.5 billion increase in frontline health funding and further investment in social housing, including $69.2 million from 2028/29 to fund additional homes. We also welcome additional funding for forensic mental health services and funding to ensure all parents can access a minimum three-day postnatal stay, which will help parents recover, bond with their baby, and maintain wellbeing.

There are also encouraging investments that recognise wellbeing is shaped early in life. Funding to strengthen protections for children, additional investment in Oranga Tamariki, initiatives to help young people in care attend and engage at school, learning support for children with high health needs, and work to improve children’s online safety all have the potential to strengthen lifelong mental wellbeing.

"Good mental health does not begin when someone reaches crisis point. It is shaped by whether children are safe, whether young people feel connected and supported, whether families have enough to get by, and whether communities have access to the services they need." says MHF chief executive Shaun Robinson.

However, these gains sit alongside major gaps, particularly in youth mental health, where urgent investment in prevention, promotion and early support is still needed.

"At a time when many young people are facing increasing pressures, this Budget misses an opportunity to strengthen support earlier and prevent distress from escalating. Investing early in children and young people’s wellbeing reduces pressure on crisis services later."

The MHF is also concerned about the public sector savings achieved through housing and welfare changes and the impact this may have on mental wellbeing. While we are glad to see further investment in social housing, the wider housing package is likely to leave some people worse off. The Budget introduces changes that increase income-related rents for people in social housing while increasing the Accommodation Supplement for private renters. Changes to welfare support may also increase hardship for some families, including families with children and young people already under pressure.

"We are concerned that raising social housing rents will punish New Zealanders experiencing the most challenging circumstances and financial hardship, including people with significant mental health challenges living in social homes," Mr Robinson says.

"Social housing is mental health infrastructure," Mr Robinson says. "A safe, stable home is fundamental to good mental wellbeing and we would like to see social housing made more readily available."