# Cabinet Paper — Establishing a Work Programme to Improve Health Outcomes for Older People

**Source:** Ministry of Health | Manatū Hauora (proactively released)  
**Date:** 22 October 2025  
**Ministers:** Hon Simeon Brown (Minister of Health), Hon Casey Costello (Associate Minister of Health)  
**Committee:** Cabinet Social Outcomes Committee  
**Status:** Proactively released  
**URL:** https://www.health.govt.nz/system/files/2025-10/Establishing-a-work-programme-to-improve-health-outcomes-for-older-people_0.pdf  
**Access Date:** 8 June 2026  
**Type:** Cabinet Paper (proactive release)

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## Purpose

This paper sought Cabinet agreement to establish a work programme to improve health outcomes for older people, including the creation of a cross-party Ministerial Advisory Group on aged care.

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## Key Facts and Figures

| Metric                                          | Value                     |
| ----------------------------------------------- | ------------------------- |
| Current 65+ population                          | ~900,000                  |
| Projected 65+ population (2040)                 | ~1.3 million              |
| 65+ share of primary/community health spending  | ~50%                      |
| 80-year-old vs 45-year-old hospital bed day use | 10× more                  |
| Government aged care spending (2023/24)         | >$2.5 billion             |
| Aged care beds with additional charges (2024)   | 43% (up from 30% in 2010) |
| People requiring aged care services annually    | ~116,000                  |

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## Strategic Vision

> "Older people are supported to live and age well, receiving the right care in the right place and at the right time."

### Three Strategic Objectives

1. **Older people are supported to live well at home and in their communities**
2. **Older people receive care that is timely, integrated, and meets their health needs**
3. **The aged care system is sustainable and responsive, and meets demand**

These align with the Government Policy Statement on Health 2024–2027 and coalition commitments (National–NZ First) to investigate funding for aged residential care and pursue bipartisan agreement on aged care beds.

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## Two-Part Approach

### Part A: Health Agencies Work Programme (Short-term)

Led by Ministry of Health and Health New Zealand, focusing on:

- Analysis to support Ministerial Advisory Group
- Demand modelling, cost projections, system levers/trade-offs

### Part B: Ministerial Advisory Group (Long-term, Cross-party)

- **Purpose:** Independent advice on supporting older people through the continuum of aged care
- **Focus areas:** Funding models, increasing ARC supply, interactions between aged care and other services
- **Membership:** Independent chair + ~10 technical experts
- **Cross-party approach:** Input from all political parties on terms of reference and membership
- **Hosted by:** Ministry of Health
- **Operational costs:** ~$100,000–$300,000 (from baselines)
- **Report-back:** Cabinet early 2026

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## Key Observations from the Paper

1. **System is fragmented:** "The aged care system is a set of separate parts, not an integrated continuum."
2. **Unsustainable trajectory:** "The current system is unsustainable without change."
3. **Inequities:** Māori, Pacific, women, disabled people, and ethnic groups experience worse outcomes
4. **Coalition commitment:** Work programme gives effect to the National–NZ First coalition agreement on aged care beds
5. **Complementary work:** Cross-references the Better Later Life Action Plan (cross-government approach)

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## Status (as of June 2026)

- The "early 2026" report-back to Cabinet on progress should have occurred by now
- The Ministerial Advisory Group may have been established and could have reported
- Further checking of Beehive and Ministry of Health releases is recommended

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## Related Documents

- Better Later Life Action Plan 2025-2028 (Office for Seniors)
- Sapere Report — Aged Care Modelling Options for Improved Funding Models (Health NZ, July 2024)
- Supporting Older People to Live Well Longer cabinet paper (MSD, Nov 2025)
- Health NZ Progress Towards Financial Stability cabinet paper (MoH, March 2026)

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_Captured automatically by NZ Seniors Knowledge Base research agent._