Govt Moves to Stabilise Total Mobility Scheme for Disabled and Older Kiwis

“Demand has grown so significantly that the scheme is now close to exceeding its Crown funding allocation and is placing considerable strain on councils and NZTA,” Bishop said.

The Government has announced a set of changes to ensure the long-term viability of the Total Mobility scheme, which supports disabled and older New Zealanders who cannot use public transport independently. Transport Minister Chris Bishop and Disability Issues Minister Louise Upston say the adjustments are necessary to stabilise funding and maintain consistent access to essential transport services.

Total Mobility provides subsidised taxi and transport fares, enabling people with mobility challenges to travel safely and reliably when buses, trains, and ferries are not suitable. Funding is shared between the Government, local councils, and the NZ Transport Agency (NZTA).

However, escalating costs since the subsidy was lifted from 50% to 75% in 2022 have placed the scheme under severe financial pressure. The previous government, Bishop said, did not account for the long-term surge in demand or the increased funding burden.

“Demand has grown so significantly that the scheme is now close to exceeding its Crown funding allocation and is placing considerable strain on councils and NZTA,” Bishop said. “This is yet another fiscal cliff we’ve inherited and must now repair.”

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Key Government Decisions to Stabilise Total Mobility

To secure the scheme’s sustainability, the Government has confirmed the following changes:

1. Subsidy Reduced to 65% (from July 2026)

• The fare subsidy will drop from 75% to 65%, still higher than the pre-2022 level.

• The reduction aims to balance affordability for users with long-term financial stability.

2. Lower Fare Caps and Maximum Subsidies

• NZTA will work with local transport authorities to reduce fare caps by around 10%, helping to control rising costs.

3. Crown Savings Recycled Into Local Funding Support

• Reduced Crown expenditure from the changes will be redirected to public transport authorities between 2025 and 2030, helping them meet funding shortfalls.

4. Immediate Relief Package

• An additional $10 million will be provided to NZTA this year to help ease the immediate financial strain on councils.

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Improving Fairness, Access and Targeting

The Government also intends to strengthen how the scheme is managed and accessed, ensuring support reaches those with the highest need.

Areas for consultation include:

• Improving the eligibility assessment process, reducing inconsistency between regions.

• Better targeting, such as allocating a set number of subsidised trips tailored to each user’s needs.

• Expanding service options, including wheelchair-accessible taxis, ride-hailing platforms, and community transport services.

Bishop noted that while fares will increase, the subsidy will remain more generous than before the 2022 change.

Upston emphasised the importance of fairness:“Disabled people should receive the same Crown support regardless of where they live. These changes are about achieving sustainability, consistency, and equity.”

She added that several councils had been considering cutting their local subsidy back to 50% due to cost pressures—a change the Government wants to avoid by stabilising the system nationally.

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Next Steps: Consultation and System Strengthening

The Ministry of Transport will soon release a public consultation document outlining proposals to modernise Total Mobility and ensure sustainable, equitable access to the service.

Upston said the review presents an opportunity not only to fix funding issues but also to design a system that better serves disabled New Zealanders in the long term.

“Total Mobility is a vital service for disabled and older people, and we want it to continue supporting them for years to come,” she said. “These changes ensure its financial viability and pave the way for a more consistent and fair service nationwide.”