Budget 2025: Nicola Willis announces $190m 'Social Investment Fund'

Finance Minister Nicola Willis has unveiled a new $190m Social Investment Fund designed to transform the way the social services are delivered to vulnerable New Zealanders.

It forms the centrepiece of a $275m commitment over four years to the government's social investment approach, with more details expected in next week's Budget.

Speaking in South Auckland on Thursday morning, Willis said the funding would target deeply entrenched issues by investing in services that deliver "measurable improvements" in people's lives.

The fund would be governed by the new Social Investment Agency and was expected to invest in at least 20 initiatives in its first year.

The first three initiatives to receive support from the fund were an Autism NZ early intervention scheme, an Emerge Aotearoa youth offending programme, and a Te Tihi o Ruahine progamme supporting families in need.

As well, the Social Investment Agency was allocated $45 million for parenting initiatives and state care prevention programmes.

Willis said each investment would have robust evaluation built in from the beginning, so the government could track the fund's impact.

"We're not talking about waving a magic wand, applying a quick fix or simply servicing misery," Willis said.

"This is about investing in smart, targeted early interventions that not only make a difference in the lives of... whānau, but mean the Government reduces the money it might otherwise have spent on treating the symptoms rather than the cause of dysfunction."

Willis said the fund would scale up over time, taking over contracts currently secured by government agencies. The government currently spends about $7b a year on social services from non-government agencies.

"The Social Investment Fund is a rejection of the failed approaches of the past. It's being set up as a totally new way of working with you," Willis said.

"I see it as a force for enduring change that will survive changes of government."

rnz.co.nz