Part 1 – Who we are and what we do | Wāhanga 1 – Ko wai mātou, ā, he aha ngā mahi

Our role | Tā mātou mahi

We are the lead agency for managing and delivering New Zealand’s welfare system

Our work | Ā mātou mahi

The Ministry of Social Development (MSD) has a broad range of responsibilities, and our work touches the lives of almost every New Zealander. We work to deliver effective welfare services as well as a range of other supports. We recognise the diverse needs of our clients and people we work with, and prioritise those with the greatest need, including Māori, Pacific peoples, youth, seniors and disabled people.

The majority of our work directly supports clients by:

• providing employment services and support
• providing income support and superannuation
• providing student allowances and student loans
• assessing eligibility for social housing[1]
• designing, allocating funding to and delivering community services with partners
• providing disability support services
• advising on child poverty reduction
• being the primary provider of social policy advice to the Government
• ensuring legislation we administer is effective and fit for purpose
• working with other agencies and the wider social sector to deliver to the Government’s priorities and targets and improve the lives of all New Zealanders
• working with iwi and Māori to support the Crown’s obligations under the Treaty of Waitangi.

Our other responsibilities include:

• monitoring a small number of Crown entities and providing advice to the responsible Minister
• other functions performed by specialised business units, including Te Kāhui Kāhu (Social Services Accreditation), the Office for Seniors, the Ministry of Youth Development, Historic Claims and the Child Wellbeing and Poverty Reduction Group.

A list of our responsibilities and functions is set out in the appendix.

We are responsible for administering Vote Social Development and Vote Disability Support Services. The vast majority of what we spend goes directly to clients and those providing services to them.

[1] Also known as public housing.

Our Ministers

We support a number of Ministers, including the:

• Minister and Associate Minister for Social Development and Employment
• Minister for Disability Issues
• Minister for Child Poverty Reduction
• Minister and Associate Minister of Housing
• Minister for Seniors
• Minister for Youth
• Minister for the Prevention of Family and Sexual Violence.

Legislation

We administer the legislation that governs New Zealand’s welfare system. The most significant of these are the Social Security Act 2018, the New Zealand Superannuation and Retirement Income Act 2001 and the Public and Community Housing Management Act 1992 (which we administer jointly with the Ministry of Housing and Urban Development).

We operate under a wide range of legislation, including the Public Finance Act 1989, the Public Service Act 2020, the Official Information Act 1982, the Privacy Act 2020, the New Zealand Bill of Rights Act 1990 and the Crown Entities Act 2004. We also deliver services and support in accordance with a range of secondary legislation, including the Social Security Regulations 2018.

Shared services

We provide an agreed range of services to other agencies, including Whaikaha – Ministry of Disabled People, the Social Investment Agency, the Children and Young People’s Commission and Oranga Tamariki.

Our operating environment | Tō mātou taiao mahi

MSD interacts with more than a million New Zealanders each year.

Vote Social Development is the largest single Vote by expenditure within the Government’s budget and accounts for just under a third of core Crown expenditure. The total Vote is $45.3 billion in 2025/26 and includes provision for New Zealand Superannuation of over $24.6 billion and other benefits or related expenses of over $15.7 billion.

Vote Disability Support Services also represents a significant investment at $2.8 billion in 2025/26.

We regularly assess how our operating environment is changing to identify trends, risks and opportunities. In the next four years, the external factors outlined below are those we expect will have the biggest influence on our operating environment.

Government priorities shape our context

The Government’s vision is for a sustainable welfare system that provides a safety net for those in need, while supporting individuals and families into work and lives of greater independence, choice and opportunity.

Employment provides a sense of purpose, independence and connectedness – leading to a better future and helping families break out of the cycle of inter-generational welfare dependence. Children living in households with adults in paid employment are less likely to experience material hardship.

The Government’s view is that given the impact on wellbeing for individuals and their families, everyone who can work, should work.

The Government has set nine targets for public service agencies to achieve by 2030. MSD is responsible for one target and shares a second target with the Ministry of Housing and Urban Development. These two targets are:

• 50,000 fewer people on the Jobseeker Support benefit
• 75 percent fewer households in emergency housing.

Our focus continues to be on supporting people into work and making sure New Zealanders can access the right support at the right time. By intervening early, we can provide New Zealanders with the support they need to move towards independence.

We make decisions based on evidence and what we know works, to ensure we are spending public money responsibly and achieving results for clients. We aim to get better results through improved use of data, evidence and analytics. This approach enables tailored investment decisions based on people's needs and barriers to work.

Partnering with iwi, community groups, employers and agencies is essential to delivering on social sector priorities

Supporting people through challenging and complex situations often requires more than one agency or organisation, including non-government organisations, hapū, iwi, employers, industry partners and community groups. Taking a more active, flexible and equity-focused approach to partnering recognises that we are stronger and more effective when we work together.

We are continuing to adapt the way we partner with those closest to the communities they serve. We will continue to expand a locally led, regionally enabled and nationally supported approach to providing services. Working closely with our partners supports our efforts to deliver more efficient and effective services, and to help people into work.

New Zealand’s economic conditions, changing population and the broader environment are increasing demand on the welfare system

New Zealand’s context is changing and we are experiencing increasing and more complex demand for our services. Drivers for this demand include the economic environment, the ageing population, and that our clients often have multiple needs and expect to interact with us in a range of ways. While some people may only need our help for a short time, others might not have straightforward needs and require more support.

The nature of work continues to change. A range of factors are fundamentally shifting the way people and businesses operate. As the economy changes, there is a need to prepare young people and workers for a changing labour market.

We are often called to lead the welfare and social elements of the recovery from crisis events such as natural disasters, terrorist attacks and pandemic events. We expect to be increasingly called to respond to climate change-related events.

We must respond to these challenges while continuing to fulfil our existing responsibilities. We are transforming our organisation so we can better respond to these challenges.

Demand for affordable housing across New Zealand is growing

Demand for housing across New Zealand continues to grow and more people are experiencing a severe and immediate need. This demand is amplified by a shortage of affordable housing which in turn is driving up house prices and rents.

We will continue to work with people who need financial and other support to access and sustain housing. We will also continue to manage the Social Housing Register[2] of applicants for social housing, including by ensuring that families with children living in emergency housing are prioritised into available social housing. 

[2] Also known as the Public Housing Register.