A $2.1 billion chunk of Finance Minister Nicola Willis’ Budget is going to education, ahead of massive reforms for secondary schools with the scrapping of the country’s landmark national qualification.

After two years of focus on the Government’s flagship education programme, back-to-basics, this Budget switches gear to focus primarily on older students.

But there are still bits and pieces in the Budget for all ages – including a 2% ($160 million) increase in operating grants for schools and half a billion dollars for school property.

There was an obvious absence of direct cost-of-living relief in the Budget – Kiwis’ most top-of-mind issue now.

But Willis pitched the coalition’s investments in core basics like education as better for New Zealand children in the long run – rather than “sugar hits” she said were only designed to win voters.

Here’s what Budget 2026 means for your children.

NCEA replacement, new curriculum

In one of the biggest education headlines of the past few months, Education Minister Erica Stanford announced the country’s landmark NCEA qualification for secondary school students would be scrapped and replaced with new qualifications. This will come alongside the coalition Government’s long-awaited fresh New Zealand school curriculum.

Budget 2026 includes:

• $61 million to develop resources for the New Zealand School Curriculum
• $20m to train 32,000 teachers in teaching the New Zealand curriculum and the new national qualifications.
• $15m to fund the development of at least eight new industry-led subjects, such as primary industries or construction, for students to study while at high school. Students could then enter the industry including on internships.

Fees-free scrapped for the trades

A portion of the funding saved by scrapping the university fees-free scheme will go towards increasing trade training spots for students.

The fees-free scheme, introduced under the previous Dame Jacinda Ardern-led Labour Government, covered students’ final year of tertiary study.

Finance Minister Nicola Willis (left) and Education Minister Erica Stanford. Photo / Michael Craig

Last year’s Budget put the annual cost of this at $150m or $600m over the four-year forecast period.

Budget 2026 includes:

• $69m to double the number of Trade Academy places for secondary school students from 10,000 to 20,000. Trade Academies are training schemes run by employers, schools and tertiary institutions. These new spaces will be phased in from next year.
• Some of the fees-free funding will be used to fund 1000 school leavers with no or low qualifications to access study for free or work-related training through training providers or polytechnics.

Schools property, grants

More than half a billion dollars has been allocated to school property maintenance and growth, which is expected to correspond to space for an additional 4700 students at either new schools or expanded schools.

Budget 2026 includes:

• $559m for maintaining and growing the country’s school property portfolio. This includes $21 million for kaupapa Māori education.
• $160m for a 2% increase in operating grants for schools.

School lunches left on cliff

Funding has been allocated in Budget 2026 for David Seymour’s free school lunches programme until 2027/2028. The funding is time-limited “while delivery improvements are explored”.

Students and teachers reported scores of teething issues when Seymour’s version of the programme initially launched under Labour was rolled out, including complaints of piping hot food burning students.

Budget 2026 includes:

• $212.4m to continue the free school lunches programme across the next two fiscal years. It was previously announced $2.9m would go to “exploring new approaches to make the programme better”.

Primary school

• $131m from 2026/27 to 2029/2030 for Teaching the Basics Brilliantly, the Government’s flagship back-to–basics education reform.
  Stanford said this year’s Budget was about “secondary achievement and assessment as we begin the reform of our secondary qualification system”.

“This Budget provides substantive investment into the development of our national secondary curriculum, providing resources for students and essential professional development for teachers.”

Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.