Funding for schools, early childhood education and students

• $478 million funding to continue the Healthy School Lunches Programme for 2 more years, including $8 million to introduce a targeted early programme for up to 10,000 2-to-5-year-olds in early learning services.
• $199 million for school operational grants. This includes a 3% cost adjustment to the operational funding that is based on the Equity Index and Isolation Index to help schools and kura to reduce the impact socio-economic factors have on student achievement. It also includes a 2.5% increase to the rest of the operational grant components.
• $191 million over 4 years for a cost adjustment of 2% to the Early Childhood Education (ECE) Subsidy for under 2-year-olds, ECE Subsidy for 2-year-olds and over, 20 Hours ECE, and Equity Funding.
• $163 million over 4 years to support Digital Services in schools, including cyber security and equipment replacement. Access to equitable, safe and resilient digital services to schools supports learners across the country to engage with the curriculum and learn digital fluency. This fosters an environment for students to achieve their potential.
• $153 million to establish Charter schools | Kura hourua.
• $45 million to support the rapid increase of ESOL students (English for Speakers of Other Languages).
• $32 million for Holidays Act Remediation for school employees, based on an updated estimate of our liability.
• $15 million over 4 years for the demand on the School High Health Needs Fund.
• $14 million over 4 years as ongoing funding for Ikura period products in schools.
• $13 million over four years to provide sustainable funding to Playcentre.

Ka Ora, Ka Ako | Healthy School Lunches Programme continuing beyond 2024

• $477 million opex
• $1 million capex

This initiative provides funding to continue the Ka Ora, Ka Ako | Healthy School Lunches programme for students from Years 0-6, and to introduce an alternative provision model for students that are Year 7 or older.

$478 million will give 235,000 children and young people access to food in education settings in 2025 and 2026.

Funding is provided to the end of school year 2026 while advice is developed on policy settings that better target the initiative, and to design longer-term options that make sure that the investment adds to and complements private and non-government sector provision.

Schools operational grant

• $199 million opex

This initiative provides funding for:

• a 3% cost adjustment to the operational funding that is based on the Equity Index and Isolation Index, and
• a 2.5% increase to the rest of the operational grant components. This includes base funding for Te Aho o Te Kura Pounamu, the Correspondence School.

This initiative will impact all 2,450 state schools (including state-integrated schools) and approximately 800,000 students at state schools around the country.

This funding will enable schools to meet their rising running costs, including staffing (teachers employed above their staffing entitlement and non-teaching staff), curriculum delivery, and other general day-to-day operations, such as heat, light, and water, or repair and maintenance costs.

The new funding takes effect from 1 January 2025.

Early Childhood Education cost adjustment

• $191 million opex

This provides a 2% cost adjustment to these subsidies:

• Early Childhood Education (ECE) subsidy for under 2-year-olds,
• ECE subsidy for 2-year-olds and over,
• 20 Hours ECE,
• Equity Funding (all components), and
• Targeted Funding for Disadvantage (from 1 March 2025).

Most of the funding increases take effect from 1 January 2025.

Around 191,600 children and 4,483 service providers will benefit from the increase in ECE funding rates.

This will help ECE services manage the increasing costs of provision while maintaining quality.

Digital services – Equipment replacement and cyber security

• $94 million opex
• $69 million capex

The education sector is increasingly reliant on Information Communication Technology (ICT) to support teaching and learning. Access to equitable, safe and resilient digital services to schools supports learners across the country to engage with the curriculum and learn digital fluency.

Digital services are being utilised more than ever, increasing the need for learners to have access to safe and resilient digital learning environments that are fit-for-purpose.

This funding maintains the existing ICT infrastructure and services in schools, which is foundational for delivering the Cyber Security and Digital Services programme.

The funding is for:

• Email protection to block malicious emails to schools,
• Domain name services to provide websites to schools,
• Microsoft and Google licensing,
• the Security Operations Centre to monitor and address security threats, and
• Netsafe cyber safety training.

The Crown company Network for Learning (N4L) delivers some of these services on behalf of the Ministry. N4L is also being funded to meet cost pressures for ICT network equipment replacement and support.

Charter schools | Kura hourua

• $153 million opex

This initiative provides funding in contingency for charter schools | kura hourua, in line with the Coalition Agreement between the New Zealand National Party and Act New Zealand. This initiative provides funding to establish approximately 15 new charter schools, convert approximately 35 state schools into charter schools, and related support.

English for Speakers of Other Languages

• $45 million opex

This funding will enable an additional 16,400 students each year to benefit from English for Speakers of Other Languages (ESOL) programmes in schools.

In total, approximately 88,400 students each year will receive additional support to access the New Zealand curriculum, and they will benefit from ESOL programmes tailored to their needs.

NCEA achievement data shows that:

• students who get ESOL support, achieve NCEA level 2 as often as non-ESOL students, and
• students who get ESOL support for 5+ years achieve as well as, or better than, non-ESOL students.

Holidays Act Remediation for school employees – updated liability estimate

• $32 million opex

The funding will support the Ministry to meet its legal obligation to remediate current and former school employees for Holidays Act underpayments.

This funding will cover the Ministry’s estimated liability for remediation payments to up to 235,000 current and former school employees.

School High Health Needs Fund

• $15 million opex

This funding is for increased numbers of students who qualify for School High Health Needs Fund (SHHNF) support.

The funding contributes to teacher aide support for students with significant health needs to safely attend school and develop independence in managing their health conditions.

Examples of high health needs include: type 1 diabetes, incontinence, and seizure-based medical conditions.

The new funding supports an additional 220 places in the SHHNF.

This increased funding will help to meet increased demand.

Ikura | Manaakitia te Whare Tangata – Period Products in Schools

• $14 million opex

This funding continues the Ikura Period Products in Schools programme.

The programme provides free period products for young women in all state and state-integrated schools and kura.

More than 2,100 schools, kura, activity centres and alternative education providers use the programme, for an estimated 98% of young women in state and state-integrated schools and kura. Charter schools will be able to opt into the programme.

Ikura reduces barriers to school attendance and sports involvement, reduces financial strain on families and whānau, and reduces the stigma of menstruation.

Playcentre – sustainable funding

• $13 million opex

This initiative provides:

• from 1 July 2024, a 7.9% increase to these Playcentre funding rates: the playcentre ECE Subsidy for under 2s, ECE Subsidy for 2s and overs, and 20 Hours ECE rates) from 1 July 2024, and
• $1.5 million property funding per year to support Playcentre Aotearoa with part of its property costs.

A new funding mechanism which will recognise and fund the improved quality and importance of having more parents at each session.

How is this being funded?

Vote Education investment is funded through a mix of new Crown funding and reprioritisation of existing Vote Education baseline.

In total Vote Education savings are around $429 million.