No lifeline for struggling mental health system in Budget, say psychiatrists
23 May 2025
Media release
Halfway through its term, the Government still has no clear plan to fix a struggling mental health system and today’s Budget delivers more patchwork than progress.
The Luxon Government has now delivered two of out of three budgets in their term – but Tu Te Akaaka Roa, the New Zealand National Committee of The Royal Australian and New Zealand College of Psychiatrists (RANZCP) says mental health reform remains stagnant, with funding and policy still failing to address the areas of greatest need.
“The mental health sector remains hopeful because we know recovery is possible. Mental ill-health is treatable with the right support, delivered by the right people at the right time,” said Dr Hiran Thabrew, Chair of the RANZCP Tu Te Akaaka Roa, the New Zealand National Committee.
“The 20% of New Zealanders living with mental health conditions can and do recover. But that depends on a system that’s planned, staffed, and resourced to meet people where they are.
“That’s what we haven’t yet seen - and what we’re still calling for.”
Dr Thabrew said mental health policy has long been patchy and poorly planned, with no coherent strategy, consistent or evidence-based funding, and this Budget continues that pattern.
“Despite growing demand, rising distress, and workforce shortages across the country, there is still no ringfenced funding for frontline mental health services and not enough investment in growing the specialist mental health workforce that cares for those with the most severe and complex needs.”
Health NZ figures show the number of psychiatrists in the public system has declined over the past two years, while demand continues to grow. In some regions, like Rotorua, child and adolescent services have been cut by 90% due to staffing shortages, and psychiatry vacancy rates go up to 31% in some regions.
The RANZCP is calling for:
- Dedicated funding for specialist mental health, protected from being absorbed into other initiatives or general health budgets
- Investment to increase the number of training places for psychiatry registrars by 10% annually for the next five years
- Support to recruit and retain New Zealand-trained psychiatrists in Health NZ
The College has welcomed the investments made in specialist mental health and addiction services, which will help expand access to targeted support for people with specific mental health needs across the country.
It also welcomes the following commitments, but notes important caveats:
- $774 million in funding to support abuse in care survivors, including some earmarked funding to strengthen the safety and oversight of the mental health system – but a separate redress and compensation scheme must still be established, as previously promised.
- $28 million over four years to fund the transition from a Police-led response to a mental health response to 111 mental health distress calls, including associated funding for stage one psychiatry registrars - but workforce shortages could limit its impact, and without greater support for specialist services, more people will end up in distress.
- New funding for urgent care clinics and primary health services – but we are concerned about these gains being eroded by understaffing and confirmed job cuts Health NZ, including in Hauora Māori, Pacific health and disability services.
“Serious mental illness, including addiction, costs the Government an estimated $12 billion each year, and is pushing back targets to reduce emergency department stays and wait times for first specialist appointments.
“It also doesn’t occur in isolation. Vulnerable and marginalised groups, including people in rural and regional communities, are more likely to miss out on help and face poorer outcomes.
“Services and the workforce that support them should be strengthened, not left under-resourced or scaled back.
“We urge the Government to step up in the remainder of its term and deliver a real plan for mental health. With the right support and leadership, we can build a system that works for everyone, everywhere in Aotearoa,” Dr Thabrew said.
MEDIA ENQUIRIES: Please contact Dishi Gahlowt on +61 437 315 911 or email media@ranzcp.org.
For all other expert mental health information visit Your Health in Mind, the RANZCP’s consumer health information website.
The Royal Australian and New Zealand College of Psychiatrists is a membership organisation that prepares medical specialists in the field of psychiatry, supports and enhances clinical practice, advocates for people affected by mental illness and advises governments and other groups on mental health care. For information about our work, our members or our history, visit www.ranzcp.org.
In Australia: If you or someone you know needs help, contact Lifeline on 13 11 14 or www.lifeline.org.au or the Suicide Callback Service on 1300 659 467 or www.suicidecallbackservice.org.au.
In New Zealand: If you or someone you know needs help, contact Lifeline NZ on 0800 543 354 or www.lifeline.org.nz or the Suicide Crisis Helpline on 0508 828 865 or www.lifeline.org.nz/suicide-prevention.
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