Government funding to support disabled people will fall at least $150 million short of what is needed, says the New Zealand Disability Support Network.
The group has released a Deloitte report that shows the costs of providing support - including housing, electricity and the wages of the disability workforce - have far outstripped funding increases over the past decade.
In some areas, there had been no funding increase for the past ten years, Disability Support Network chief executive Garth Bennie said.
If the underfunding was not addressed soon, disability support providers would be unable to continue providing quality services, he said.
"There are people in the system who are not getting the range and extent of support that they think that they need," Mr Bennie said.
"It's also becoming increasingly challenging for providers to offer the levels of quality and safety and innovation that they would like to see."