Budget 2025 Delivers Record Boost to Primary Care Access and Health Workforce

In a bold move to overhaul New Zealand’s strained primary healthcare system, the Government has announced a significant funding increase for general practice and community health services, marking one of the largest investments in primary care in recent years.

Health Minister Simeon Brown confirmed that Budget 2025 includes targeted investments to improve access, reduce hospital strain, and expand the role of GPs and nurses in frontline health delivery.

A Historic Funding Package for Primary Health Care

At the heart of the announcement is a $285 million performance-based funding package spread over three years. This new funding is in addition to the annual capitation uplift, which is currently under negotiation between Health New Zealand and primary care providers.

“Primary care is critical to delivering better health outcomes for all New Zealanders but has not received the investment needed in recent years. That is now changing,” said Minister Brown.

The new performance package aims to directly address key challenges in the health system by:

• Expanding patient access to GPs, especially in underserved areas.

• Incentivising immunisation rates through performance targets.

• Empowering GPs to perform more minor elective procedures, reducing the load on hospitals.

This effort reflects a renewed focus on decentralising some health services, supporting local providers, and improving preventive care measures.

Broader Health Sector Investment

This primary care package is a central component of the Government’s record $1.37 billion increase in overall health spending in Budget 2025. The allocation includes specific investments in digital health services, workforce development, and urgent care systems:

• $447 million for 24/7 digital health services, extended after-hours care, and urgent treatment centres.

• Additional funding to train and retain doctors and nurses in primary care settings.

Minister Brown noted this approach would allow communities to get more timely medical help and reduce unnecessary hospital visits, freeing up emergency departments and specialist services.

Driving System-Wide Improvements

“This is the largest increase in primary care funding in many years,” Brown said. “It gives providers the opportunity to begin addressing the impacts of years of underfunding by the previous government.”

In total, health spending will rise 7.4% in the next financial year, with a 6.2% increase per capita, demonstrating the Government’s intent to improve outcomes across the entire health ecosystem.

“When patients can see a GP quickly and affordably, the whole system works better. That’s why this funding matters—because it delivers real results for patients and value for taxpayers,” Brown explained.

The move is also expected to help retain GPs and practice nurses, who have faced increasing pressure over the past decade due to stagnant funding and growing demand.

Looking Ahead

Minister Brown stated that further initiatives will be announced soon, particularly regarding increasing the domestic health workforce and improving retention rates for doctors and nurses in general practice. These measures are vital to ensuring that the funding uplift translates into lasting improvements in care delivery.

“Our focus remains on strengthening services, reducing pressure on GPs, and ensuring Kiwis can access the care they need, when they need it,” he concluded.

This announcement marks a pivotal shift toward rebuilding public confidence in the healthcare system, particularly at the community level where timely access to care can significantly reduce downstream health costs and improve long-term patient outcomes.