Budget 2022
Budget 2022
Budget 2022: New Tertiary Education Funding
The government has announced details of Budget 2022 which provides additional operating investment of $350 million over four years and capital investment of $40 million over two years for tertiary education. This includes:
- $267 million over four years for an across-the-board 2.75% increase to tertiary tuition and training subsidies and $73 million in funding for increased enrolments. This investment recognises the support providers need to maintain quality and ensure their delivery remains relevant and responsive to learner, community and employer needs. $40 million of 2021/22 funding is also being carried into 2022/23 to provide additional funding for enrolments in 2023.
- $40 million capital injection for Te Pūkenga – New Zealand Institute of Skills and Technology to co-fund prioritised remediation and upgrades of infrastructure across its former Institutes of Technology and Polytechnics across 2022/23 and 2023/24.
- $10 million of new operating funding to establish Te Tahua o Te Reo Kairangi, a new fund to support new or existing programmes delivering higher levels of te reo Māori proficiency.
$317 million is also being provided through Vote Social Development to meet demand for the Apprenticeship Boost and extend it to the end of 2023. The $230 million extension of Apprenticeship Boost was announced on Monday 9 May.
Alongside Budget 2022 announcements, the Tertiary Education Commission has published 2023 subsidy rates, including the rates for the unified funding system for vocational education, which implements the $279.5 million announced for vocational education and training in Budget 2021. The rates and more details can be found in the unified funding system section.
Tertiary Education Summary of Initiatives 2022
Initiative $increase/($decrease) |
Description |
Cost Adjustment for Tertiary Tuition and Training Subsidies Operating Funding 2021/22: - 2022/23: 39.344 million 2023/24: 76.218 million 2024/25: 75.733 million 2025/26*: 75.600 million Five-year operating total: 266.895 million |
This initiative applies a 2.75% increase to tuition and training subsidies to support tertiary providers to manage increases in delivery costs and to maintain the quality and accessibility of tertiary education over time. The increase in per-student subsidies will support providers to ensure their delivery remains relevant and responsive to students’ and employers’ needs, especially as they continue to manage the impact of COVID-19 on their operations. |
Dawn Raids Apology - Maintaining and Growing Tulī Takes Flight and Pacific Education Foundation Scholarships Vote Education; Vote Tertiary Operating Funding · 2021/22: - · 2022/23: 0.295million · 2023/24: 0.545 million · 2024/25: 0.596 million · 2025/26: 0.612 million Capital Funding · 2021/22: - · 2022/23: 0.017 million Five-year operating total: 2.048 million Five-year capital total: 0.017 million |
This initiative will maintain and grow the Tulī Takes Flight and Pacific Education Foundation Scholarships. The Tulī scholarships were announced during the Government Dawn Raid Apology in 2021 and are a gesture of reconciliation and goodwill. This funding will further support Pacific education scholarships to address education system inequities and support the management of the scholarships. Vote Education: $1.068 million Vote Tertiary: $0.980 million |
Māori Language Education Funding to Support Provision and Growth Vote Education, Vote Tertiary and Vote ERO Operating Funding · 2021/22: - · 2022/23: 8.564 million · 2023/24: 15.631 million · 2024/25: 20.862 million · 2025/26*: 29.592 million Five-year operating total: 74.649 million |
This initiative will increase funding for Māori medium education in schooling to address historic underfunding of the additional costs associated with teaching and learning through te reo. It will establish a high proficiency te reo Māori programme fund in tertiary education to support language revitalisation and address workforce needs. Funding will also provide monitoring and evaluation and support the work of Te Pae Roa in the programme of growing to grow Māori medium and Kaupapa Māori education through to 2040. Vote Education: $56.649 million Vote Tertiary: $10.000 million Vote ERO: $ 8.000 million
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Te Pūkenga – New Zealand Institute of Skills and Technology Capital Investment Fund Capital Funding · 2022/23: - · 2023/24: 25 million · 2024/25: 15 million · 2024/25: - · 2025/26*: - Five-year operating total: - Five-year capital total: 40.000 million |
This initiative will fund capital injections into Te Pūkenga – New Zealand Institute of Skills and Technology to co-fund prioritised remediation and upgrades of infrastructure across its network of Institutes of Technology and Polytechnics. The investments will support Te Pūkenga to modernise its physical infrastructure as part of implementing the Government’s Reform of Vocational Education. This will support learners to access fit-for-purpose teaching facilities that enables more flexible and work-based learning. |
Tertiary Education and Training - Increased Funding for Enrolments Operating Funding $increase/($decrease) · 2021/22: (40.00 million) · 2022/23: 56.343 million · 2023/24: 56.343 million · 2024/25: - · 2025/26*: - Five-year operating total: 72.686 million |
This initiative provides funding for tertiary education and training provision in prioritised areas in 2023, particularly work-based learning such as apprenticeships. Demand in 2023 is forecast to exceed the volume that can currently be funded through baselines. Without additional funding, the ability of prospective learners to access tertiary education and training would likely to be restricted. |
Apprenticeship Boost Initiative Vote Social Development; Vote Tertiary Operating Funding · 2022/23: 25.872 million · 2023/24: 196.697 million · 2024/25: 94.915 million · 2024/25: - · 2025/26*: - Five-year operating total: - Five-year capital total: 317.484 million |
This initiative meets demand for and extends the end-date of the Apprenticeship Boost Initiative (ABI) from 4 August 2022 to 31 December 2023. From 5 August 2022, the subsidy rate will be $500 per month (GST exclusive) for eligible first- and second-year apprentices (a reduction from the current $1,000 per month for first-year apprentices). The initiative is funded by a combination of carrying forward unspent 2021/22 ABI funding and funding from the COVID-19 Response and Recovery (CRRF) fund. The extension is estimated to enable around 24,000 apprentices to start getting ABI support, and around 14,000 apprentices to keep getting ABI support after 4 August until they have completed 24 months of their programme of study. Vote Tertiary Education: $0.9 million Vote Social Development: $316.583 million
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*Includes outyears funding |