Education Budget 2021 Highlights

Vote Education

Budget 2021 provides additional operating investment of $1.4 billion and capital investment of $746.8 million over 4 years for Vote Education, which includes:

  • $634.1 million of new capital funding for school property. This includes:
    • a capital injection of $150.0 million for 25 planned school property redevelopment projects so that they can enter construction sooner.
    • $428.1 million to build new schools and grow existing schools to meet demand.
    • $56.0 million to keep the Christchurch Schools Rebuild Programme on track.
  • $169.9 million of new operating funding over the next four years to help certificated teachers in education and care centres continue to move towards pay parity with their equivalents in kindergartens. We have also set aside money to improve pay in kōhanga reo and departmental spending to support the transition.
  • $185.3 million of operating funding and $53.8 million of capital funding over the next four years to begin the work to reform our system of support for schools and early learning.
  • $100.7 million increase for Early Childhood Education subsidies over the next four years to fund a 1.2% increase to the universal subsidies and targeted subsidies, to maintain quality and affordability.
  • $92.5 million of operating funding and $8.1 million of capital funding to complete the NCEA Change Programme.
  • $90.0 million boost for Schools’ Operational Grant over the next four years to fund a 1.6% universal increase. This will help state and state-integrated schools meet increased operational costs.
  • $67.4 million over the next four years to meet growth and fund investment in a range of supports and services for students with additional learning needs. These include:
    • $24.3 million to provide intensive support for our most vulnerable young learners at risk of disengaging with their learning.
    • $20.9 million to provide an additional 7,500 student places that can be reached by the Attendance Service.
    • $17.7 million of reprioritised funding to support young learners with wellbeing and behavioural needs that may be challenging to others.
    • $4.4 million to support alternative education services.
  • $52.8 million operating funding package for property upgrades and maintenance at state-integrated schools.
  • $20.2 million supporting Pacific bilingual and immersion education in the schooling system, this includes $12.4 million of new operating funding from Budget 2021 and $7.8 million of reprioritised funding from Vote Education.
  • $18.1 million of new operating funding and $4.9 million capital funding for system changes and other implementation costs to support replacing the decile system with the Equity Index.
  • $11.6 million to expand Reading Together Te Pānui Ngātahi Partnerships and Duffy Books in Homes.
  • $10.0 million to deliver targeted initiatives to support ākonga success in NCEA Pāngarau Te Reo Matatini, Numeracy and Literacy.
  • $5 million to deliver sustained professional learning and development to embed Tapasā as a tool to address social inclusion in the education sector.
  • $4.2 million to provide ongoing funding for the Prime Minister’s Vocational Excellence Award established in 2019.

Vote Education Summary of Initiatives 2021

For more detailed information on specific initiatives for Early Learning, click the link below.

Detailed information on specific initiatives for Early Childhood Education 

For more detailed information on specific initiatives for Schools, click the link below.

Detailed information on specific initiatives for Schools

Vote Tertiary Education

Budget 2021 allocates new operating funding of $470.3 million and $13.9 million of capital funding for Vote Tertiary Education over the next four financial years in education, which includes:

  • $466.1 million of operating funding for tertiary education and tertiary ākonga. This include:
    • $279.5 million over the next four years to invest in the future transformation of the vocational education and training system, including funding to build towards a more unified funding system.
    • $110.7 million over four years for an across-the-board 1.2% increase in tertiary education tuition and training subsidies(external link). This investment recognises the support providers need to maintain quality and ensure their delivery remains relevant and responsive to ākonga, community and employer needs.
    • $33.4 million of operating funding and $13.9 million of capital funding to support the transition and integration phase of the Reform of Vocational Education, this includes $27.4 million of operating funding from Vote Tertiary Education and $6.0 million of operating funding from Vote Education.
    • $32.3 million to address immediate cost pressures facing wānanga.
    • $10.4 million relating to reinstating the Training Incentive Allowance for learners studying at levels 4 to 7 on the New Zealand Qualifications Framework.
    • $10.0 million to extend the temporary hardship fund for learners in tertiary education for the 2021 calendar year, this includes $5.8 million of new operating funding from Budget 2021 and $4.2 million of reprioritised funding from Vote Tertiary Education.

The Government has also announced $25 increases to maximum weekly student loan payments for living costs and student allowance payments. More information can be found on Studylink.

Budget 2021 assistance for students(external link) 

Vote Tertiary Education Summary of Initiatives 2021

For more detailed information on specific initiatives for Tertiary, visit the Tertiary Education Commission website.

Tertiary fact sheet (external link)

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