PUBLISHED JUNE 2026

Budget 2026 for tertiary pathways and partners

Budget 2026 changes how Aotearoa invests in tertiary education. It confirms the end of the final‑year Fees Free scheme after 2026 and redirects part of that funding into targeted education and training initiatives.

These changes aim to strengthen the pipeline from school into a range of training options. They also create space around the next stretch of the journey, including degree‑level study and early work experience.

New investment expands vocational and foundation pathways

A central feature of Budget 2026 is the expansion of vocational and foundation‑level programmes for school students and recent leavers. Key tertiary pathway initiatives include:

• Ending final‑year Fees Free at the end of 2026, with remaining entitlements honoured
• Around $69 million to double the number of places for senior secondary students in Trades Academies by 2030
• Approximately $87 million to fund an additional 1,000 Youth Guarantee places for young people with low or no qualifications
• Additional funding to support forecast enrolment growth and equity initiatives in tertiary education

These changes aim to strengthen the pipeline from school into a range of training options.

They also create space for other organisations to focus on the next stretch of the journey, including degree‑level study and early work experience.

Opportunities at the degree end remain uneven

Even with stronger pipelines into vocational training, degree‑level opportunities are still unevenly distributed. Students from high‑decile schools continue to progress to university at much higher rates than those from low‑decile schools. Around 17 percent of students from low‑decile schools reach university, compared with about 70 percent from high‑decile schools.

For many first‑in‑whānau students, the barriers are not only fees. They include limited access to information, fewer networks, and a lack of familiarity with university environments. Budget 2026 focuses on broad system settings. First Foundation uniquely complements this by providing intensive, person‑centred support at the degree end.

First Foundation and partners bridge the journey into degrees

First Foundation has been working in this space for over 27 years.

In the most recent year, more than 800 young people applied for a First Foundation scholarship. Over 170 met every criterion, including strong academic results and family incomes well below the national average. Eighty‑two percent would be the first in their whānau to attend university. Current support funds 88 scholars, which means a further 86 eligible rangatahi could not be offered places.

Proven wrap‑around models deliver strong returns

Our programme helps students succeed in their study and complete qualifications at high rates.

Independent analysis by the New Zealand Institute of Economic Research estimates that every dollar invested in helping underserved students gain degrees can generate substantial returns through higher earnings, increased tax contributions, and reduced pressure on social services. Over time, better tertiary outcomes for underserved learners support stronger communities, workplaces, and whānau.

Partners can extend the impact of Budget 2026

Budget 2026 sets new parameters for tertiary funding and grows pipelines at earlier stages. Within that landscape, there is room for targeted, high‑impact partnerships that focus on degree‑level access and success for first‑in‑whānau rangatahi.

First Foundation estimates that supporting the 86 eligible applicants who missed out this year, through to graduation, would require around $2.4 million in combined public and private funding. 

For current and future supporters, this presents a clear opportunity to complement Budget 2026 by expanding successful bridge programmes, rather than duplicating existing pipelines. Together, we can increase the number of talented rangatahi who move from school into degrees, meaningful mahi, and leadership roles in their communities.

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