Government Expands Mental Health Crisis Services with $61.6 Million Boost

Today’s announcement builds on the Budget 2025 investment of $28 million to establish 10 new mental health co-response teams across the country.

In a major step toward strengthening New Zealand’s mental health system, Minister for Mental Health Matt Doocey has announced a comprehensive package of initiatives designed to improve crisis response, expand frontline capacity, and deliver faster, more compassionate support to people experiencing acute mental distress.

The $61.6 million investment will fund more clinical staff, peer-led services, and community-based crisis alternatives across the country, representing one of the most significant expansions of frontline mental health care in recent years.

“When someone takes the brave step of reaching out, I want that support to be there,” Minister Doocey said. “This investment ensures that people in crisis are met with timely, effective, and humane care — not long waits or inadequate options.”

---

A Stronger, Faster Crisis Response

The funding package focuses on delivering immediate, tangible improvements to New Zealand’s mental health crisis services. The key initiatives include:

• 40 new clinical staff to strengthen crisis assessment and treatment teams nationwide, ensuring faster response times and reducing pressure on existing frontline workers.

• Two new 10-bed peer-led acute alternative services, providing community-based, non-hospital options for people in distress — designed to reduce inpatient admissions and deliver more personal, supportive care.

• Three additional emergency departments (EDs) will now have peer support workers, expanding the program to 11 EDs nationwide, where lived-experience workers provide emotional support and guidance to people arriving in crisis.

• Two new Crisis Recovery Cafés, bringing the national total to eight, offering non-clinical, safe, and welcoming spaces where people can seek help, talk, and de-escalate mental health distress under the guidance of trained peer supporters.

“We don’t want people in distress waiting long periods for a crisis assessment,” Doocey said. “With 40 extra clinical staff, more New Zealanders will get faster access to support when they need it most.”

---

Expanding Peer Support and Community-Based Care

The Government’s plan reflects a deliberate shift toward peer-led and community-based responses, which have proven effective internationally in reducing hospital admissions and providing more person-centred care.

“Peer-led acute alternative services provide more choice for people experiencing mental health issues,” said Doocey. “These are warm, safe, and supportive environments that help people recover in their communities rather than in hospital wards.”

Crisis Recovery Cafés and peer support in emergency departments are central to this approach. These services offer a bridge between clinical care and community support, empowering people with lived experience to play an active role in helping others through crisis.

“We’re already hearing great feedback about peer support workers in emergency departments,” Doocey said. “Rolling out more of these positions will result in better crisis responses and stronger outcomes.”

---

Building on Budget 2025 Investments

Today’s announcement builds on the Budget 2025 investment of $28 million to establish 10 new mental health co-response teams across the country. These teams — made up of police, paramedics, and mental health professionals — respond directly to 111 mental distress calls, ensuring a compassionate and coordinated response.

The Budget also included additional funding for crisis helpline capacity, reflecting the Government’s commitment to ensuring help is available 24/7, through multiple channels — whether in-person, by phone, or online.

Earlier in the year, the Government introduced a 60-minute handover policy requiring Police to transfer individuals in mental distress to emergency department care within one hour — a move aimed at reducing waiting times, improving safety, and ensuring a smoother transition to clinical support.

---

A New Vision for Mental Health Support

Minister Doocey emphasized that this latest funding represents a systemic shift toward earlier, faster, and more humane intervention for people in distress.

“Crisis doesn’t happen on a schedule. When someone takes the brave step to reach out — whether it’s you, your child, a friend, or a family member — we’re committed to ensuring the right support is always there,” he said. “This package goes a long way in making sure that’s possible.”

The Government’s vision is to integrate clinical, community, and peer-led approaches into a unified crisis response system that can meet the diverse needs of New Zealanders across regions and age groups.

---

Looking Ahead

Mental health advocates have long called for a more robust crisis response system to replace the overburdened emergency departments and underfunded community services. This latest initiative, alongside ongoing reforms, marks a turning point in New Zealand’s efforts to build a more responsive and empathetic mental health system.

By combining clinical expertise with lived experience, the Government aims to ensure that no one in distress faces their darkest moments alone, and that every person who reaches out for help receives timely, compassionate, and effective care.