Hon Chris Hipkins Minister of Education

Kia ora tatou,

Budget 2022 reaffirms our commitment to the big changes in vocational education and training which are already starting to yield results.

Our focus is on supporting employers and learners for the good of our communities and the whole of New Zealand. We have a long-standing skills shortage issue in New Zealand and our changes are addressing the systematic reasons for this. It is therefore great to see the significant cooperation and collaboration in the sector that is occurring now, demonstrating that our reformed vocational education and training system is well and truly hitting its stride.

Across the wider tertiary education sector, we have increased funding for enrolments in prioritised areas by $112.7 million in 2023, particularly for work-based learning such as apprenticeships.  We are also providing $266.9 million of operating funding over the next four fiscal years to increase the tuition and training subsidies paid to tertiary education and training providers by 2.75% from 1 January 2023.

We have allocated an additional $230 million as part of Budget 2022 for our highly successful Apprenticeship Boost programme.  As at the end of February 2022, there were over 56,000 apprentices funded by the Tertiary Education Commission, compared to 37,000 at the same time in 2020: an increase of 55 percent in two years. The additional funding will help another 24,000 apprentices to start getting Apprenticeship Boost support and some 14,000 to keep being supported beyond 4 August 2022, when the initiative was meant to conclude.

We are also pleased to release the new funding rates for vocational education under the unified funding system (UFS).  A significant increase in funding for work-based training, and funding to better support learners, are features of the funding rates for 2023 which are enabled by the $279.5 million announced for VET in Budget 2021.

The average funding rate to support people in work-based training will increase by approximately 50 per cent in 2023 from $4,700 per fulltime equivalent learner to $7,300 when compared to 2021 rates. Funding targeted to support learners will also increase.

This progress adds to the already established six Workforce Development Councils (WDCs), which have been engaging successfully with industry to shape vocational education and training to create a skilled workforce that meets employer and business needs today and tomorrow.

The WDCs are informed by the work of fifteen independent Regional Skills Leadership Groups (RSLGs) which identify and support better ways of meeting future skills and workforce needs in our regions and cities.  The RSLGs have published more than seventy ​ Local Insights Reports (LIRs) over the past 12 months which provide on-the-ground knowledge on workforce issues affecting regions.

We have also consolidated the provision of education and learning through the establishment of Te Pūkenga which is bringing together Aotearoa New Zealand’s Institutes of Technology and Polytechnics (ITPs) and many Industry Training Organisations (ITOs) into one entity. Te Pūkenga is operating together with other providers including private training establishments and wananga in a unified vocational education and training system.

Te Pūkenga is making good progress – it has already developed and published Te Rito Outcomes Framework for Learner Success, implemented Te Pae Tawhiti (Te Tiriti Excellence Framework) action plans and adopted a disability action plan to better meet the needs of our disabled learners. Budget 2022 is supporting Te Pūkenga with an additional $40 million investment to co-fund prioritised remediation and upgrades of infrastructure across its network.

We have all done a lot of work together to bring the reforms to life.  However, I am conscious the mahi is not over yet.  Much credit goes to all in the sector who have helped to get us this far.  Change on this level is not easy and your continued commitment and dedication is acknowledged and appreciated.

Ngā mihi

Hon Chris Hipkins

Minister of Education