The Government will reshape vocational education and training to return decision making to regions and enable greater industry input into work-based learning Tertiary Education and Skills Minister, Penny Simmonds says.

“The redesigned system will better meet the needs of learners, industry, and the economy. It includes re-establishing regional polytechnics that are financially sustainable,” Ms Simmonds says.

“A strong vocational education and training system contributes to New Zealand’s economic prosperity, and improves work opportunities and wellbeing for individuals, their families, and communities.

“Vocational education and training is crucial to support economic growth in regional economies, and helps retain young people and workers within those regions.”

The Government has agreed to amend the Education and Training Act 2020 to disestablish Te Pūkenga and allow institutes of technology and polytechnics (ITPs) to be established as autonomous entities. These may be standalone or as part of a federation.

“Decisions on which polytechnics will be established, and in which form, will be taken in the first half of next year. These decisions will consider the needs of local communities, learners and industry,” Ms Simmonds says.

“The ITPs’ financial difficulties have been decades in the making, and the establishment of Te Pūkenga has not resolved these financial issues. It is important for the sustainability of the sector for this work to be undertaken prior to the re-establishment of individual polytechnics.

The Government’s aim is to ensure learners across New Zealand have access to vocational education and training with regional provision, and that important industry and national needs are met.

“There are still important decisions to be made regarding the design of the work-based learning system. The standard setting functions currently delivered by Workforce Development Councils (WDCs) will be taken over by Industry Skills Boards, but further input is sought from industry on how work-based learning should be structured. WDCs will continue to operate in the interim.

“When I consulted on options for work-based learning earlier in 2024, the feedback I received led to a new option being developed. As it is essential that the design meets the needs of industry, I intend to hold a targeted consultation on two work-based learning options very early in 2025,” Ms Simmonds says.

Information on the options and the consultation process will be provided to industry bodies in January 2025.

“I plan to take decisions on the establishment of polytechnics, the design of the work-based learning system and coverage of Industry Skills Boards; and funding for the new system to Cabinet in the first half of 2025,” Ms Simmonds says.

“It is my intention that the new system will start to be implemented from 2025, with the first standalone polytechnics in place on 1 January 2026. This is a tight timeframe but one that supports the earliest possible return to certainty for the sector after years of instability and change. Every effort will be made to ensure that education and training are not disrupted.”

Throughout this time, learners should continue to enrol and study for qualifications, and employers keep taking and supporting apprentices and trainees.

“Although there may be some changes to how ITPs are organised, and to how and where programmes are delivered, learners can continue to have confidence in their courses and qualifications,” Ms Simmonds says.

“I acknowledge, too, that these changes may be unsettling for those working in the sector. All of those affected by the changes will be kept informed and supported through this process.”

Notes:

About vocational education and training (VET)

• Vocational education and training helps learners to acquire the skills and knowledge needed to perform a specific role or to work in a specific industry. It can include not just traditional trades like plumbing or electrical apprenticeships, but areas such as healthcare, service industries, information technology, and community care.
• Vocational education and training can be provided in a classroom or simulated workplace environment (provider-based or ‘off-job’) or directly by employers in the workplace (work-based or ‘on-job’). Apprenticeships and traineeships are the most well-known form of ‘on-job’ vocational education and training.

Plan for implementation – including timeframe

• The changes to the VET system are intended to come into effect during 2026. Implementation activity will be carried out through 2025 to prepare for the new system.
• This includes consultation with industry, learners and others interested in industry-led vocational education and training; as well as supporting the key decisions that will be made by Cabinet in the first half of 2025, including the number and location of standalone ITPs, the provision of work-based learning, and changes to the funding system to support the redesigned system.

Te Pūkenga programme and course delivery

• The continuation and delivery of programmes and courses at individual institutes of technology and polytechnics (ITPs) is a Te Pūkenga business decision.
• Te Pūkenga ITP business divisions are currently undertaking financial analysis to improve their financial performance, and this includes working through potential changes to provision and resourcing.
• The Government has received information on potential programme closures across Te Pūkenga’s ITP business divisions. This is part of advice on the financial improvement work Te Pūkenga is undertaking with assistance from specialist financial advisors. This work remains ongoing and decisions about which of these programmes are retained or closed remain the responsibility of Te Pūkenga.

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