Speaking at a post-Budget ministry briefing today, Ms Bennett said that under the Community Response Model social sector decisions would be made as a result of feedback starting in individual communities and involving all stakeholders.
Forums would make recommendations to the minister on how funding could be better directed to "improve services and results for local families".
Concerns were raised as to how a GST increase from 12.5 percent to 15 percent might affect not-for-profit organisations working in the sector, who pay the tax as part of their day to day operations but are unable to claim it back.
Ms Bennett said issues raised by the GST increase, which takes effect from October 1, were being investigated as new contract rounds approached. The extent to which allowances were made would be decided on a case-by-case basis.
She said she was confident there was enough money in the ministry's budget to achieve goals of improving and streamlining services, but changes had to be made.
"I think we've got the money - it's how we use it," she told reporters. "So we need to have a critical look at what's happening on the ground where that best use of spend is.
"Because quite frankly we've had a whole lot of money piled in over a period of time and I think it's time to not step back, but step sideways and look at each other and say 'where is the need most and how do we prioritise it better?'"
A lot of money had been freed up from the Pathways to Partnership programme, and contracting arrangements would be reviewed.
Ms Bennett said taking a "harder line" meant making changes to some of the ways the social services sector had got used to operating, and "doing better".
She didn't itemise potential changes, but said organisations on the ground would know what wasn't working and were expected to give feedback. Potential mergers from providers and improvements to synergies were ways to make savings.
"What we are doing is asking the communities themselves what is working and what is not."
"I am determined to change the way we do things because I believe social services can be funded and delivered better," she said.
