Apprenticeship Boost secures $77m
The extension of an on-job training scheme will enable about 30,000 people to start or continue being supported during what the government describes as “challenging economic times”.
Jan Tinetti, Minister of Education, says Apprenticeship Boost will carry on through until the end of 2024 instead of ending this year at an expected cost of $77.1 million. That includes new funding of $17.1m.
The initiative provides subsidies to employers of first and second-year apprentices to support them while working toward qualifications. As of March 2023, 57,040 apprentices have been supported through the scheme with its extension being backed by the Motor Trade Association.
“This continues the government’s focus on apprenticeships and ensuring a strong pipeline of skilled workers for key industries,” says Tinetti.
This year’s budget also sees funding allocated to support IT integration at Te Pukenga – New Zealand Institute of Skills and Technology.
“Moving from 24 separate IT systems to a single integrated system is a massive task, but it’s crucial for financial sustainability and making sure Te Pukenga is operating efficiently and without duplication,” explains Tinetti.
“That’s why Budget 2023 provides Te Pukenga with access to an interest-free crown loan of up to $220m to support it to integrate IT systems. Investment in technology solutions will help it move towards a connected, national network, which has long been signalled as a priority task for the entity.
“This investment will support students and employers to transition seamlessly between delivery sites and educational modes, so Te Pukenga is a true long-term skills training partner to firms, operating both regionally and nationally.”
Extra funding areas
While provider-based enrolments have decreased from 2021 levels, total enrolments across provider-based and work-based tertiary education – including apprenticeships – are expected to remain higher than pre-coronavirus levels in 2024 and 2025, requiring additional baseline funding.
The government has, therefore, committed $180.7m to allow the Tertiary Education Commission to fund 16,000 more full-time equivalent students in 2024 and 13,000 more in 2025 than previous funding levels would have allowed.
“We know global inflationary pressures and the tough economic outlook have had a profound impact on providers,” says Tinetti. “The budget is responding to those pressures and moving forward with our tertiary education strategy.”
About $521m over four years includes an across-the-board five per cent increase from 2024 to help institutions manage increases in delivery costs, and maintain the quality and accessibility of tertiary education and training. This is the biggest increase in at least 20 years.
“This funding ensures tertiary education and training remains relevant to students’ and employers’ needs whether it be at a wananga, university, through an apprenticeship or to learn foundational literacy and numeracy skills.”
