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Budget 2026: $2.1 billion for education, including 4700 new student places

Secondary schools were the focus of 2026's Budget announcement, with new vocational qualifications and a small operating grant boost

This year’s Budget has seen modest gains for schools, with increases to operations grants, money put aside for new schools and buildings, and funding for implementation of the new curriculum. 

$2.1 billion is being invested in secondary assessment and curriculum changes, Minister of Education Erica Stanford announced, continuing from provisions for primary and intermediate in the 2024 and 2025 budgets. 

A secondary-focused Budget

The bulk of the Budget’s announced funding was allocated to changes at the secondary level. 

This figure includes $61 million for new curriculum resources and to enhance the curriculum website, Tāhurangi, as well as $20 million for professional learning and development for 32,000 secondary school teachers for curriculum implementation.  

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$160 million was allocated to operating grants for schools, representing a 2 percent increase, as well as $559 million for expansion and maintenance of school property.

This includes 4700 new student places through new schools, expansions and classrooms, up to 10 major school redevelopment projects and up to 150 learning support modifications.  

There would also be one new special school developed, and 20 learning support satellite classrooms.  

The funding would come from money that had been moved from other areas, Ms Stanford said. 

“To deliver this investment, we have assessed underspends and reprioritised initiatives that are underperforming or lack clear evidence that they’re delivering intended outcomes.”

“Around $65 million within the vote has been identified for reinvestment into priority education initiatives.” 

Boost for vocational training 

The Budget also allowed for increased vocational pathways, with $15 million allocated to the development of “industry-led secondary subjects each focused on a specific industry (e.g. construction or primary industries)”.   

Related School News article: Rural schools feeling impacts of fuel crisis, principals say

These subjects will be created by Industry Skills Boards with the aim to encourage more students to get vocational education while still at secondary school, Ms Stanford said. 

“These investments will enable New Zealand students to develop practical, job-ready skills, relevant to business and industry whilst at secondary school.  

“This is good for innovation, entrepreneurship, reducing unemployment and ultimately economic growth. It improves productivity and enables Kiwis to obtain high-skilled employment and live the lives they choose.” 

“Industry Skills Boards are leading curriculum development to ensure the new vocational education pathways in school align closely with real-world labour market demands, reducing skills mismatches and building the workforce of the future.” 

Other funding areas 

Additionally, Ms Stanford announced $90 million in funding for the New Zealand Qualifications Authority (NZQA), for digital systems to enhance the new national qualification rollout, and $131 million for the next phase of its Teaching the Basics Brilliantly.  

Other areas announced included funding for the Government’s increased KiwiSaver contributions, a cost adjustment for places in the School Onsite Training Programme and  payroll technology improvements to ensure paying teachers is “more accurate, timely, and smoother than before”.   

Ms Stanford also announced a $22 million boost for students with high health needs, $3 million for Deaf education services and $10 million to meet the increased demand for English for Speakers of Other Languages (ESOL).  

Fuel crisis 

Teachers and principals hoping for fuel-related relief were left waiting, however.  

Ms Stanford’s announcement mentioned “a contingency amount to support schools with fuel related costs”, but did not elaborate on what this entailed. 

Minister of Finance, Nicola Willis outlined the Budget’s approach to the fuel crisis, which she labelled “prudent”, but did not give further detail beyond announcing “additional funding for Fire and Emergency, Corrections, Police, Customs and Education to maintain frontline operational activities in the face of sustained fuel price increases”.

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