New Zealand to scrap fee-free university scheme

New Zealand is to scrap its signature scheme that gave university students free tuition in their final year, the government has confirmed.

Ministers have announced that this year’s cohort will be the last to benefit from the policy, first introduced by Jacinda Ardern’s Labour government in 2018.

The move is expected to be confirmed in the country’s budget that is due on 28 May.

Finance minister Nicola Willis was forced to reveal details of the plan early after her coalition colleague Winston Peters, the leader of the right-wing New Zealand First party, revealed it was in the pipeline in a radio interview.

In a self-described “budget leak”, Peters, who serves as minister of foreign affairs, told Newstalk ZB that offering free fees was “wasteful spending” and it would be cut.

In a statement to local press, Willis, part of the centre-right National Party, said: “Ongoing coalition negotiations have led to good budget policy decisions that further the immediate and long-term interests of New Zealanders.”

“We will have more to say about this in due course,” she added.

When it was first introduced, the policy initially covered a student’s first year of study but this was changed to the final year in 2025 to discourage dropouts.

Those who have not undertaken significant post-school education in the past qualify for the waiver, worth up to NZ$12,000.

The scheme has long been criticised for failing to move the dial on university access, with data showing that the wealthy benefit disproportionately because they are more likely to attend university.

Data released in 2023, covering the first four years of the signature programme, did not record any shift in university commencements, with people from the wealthiest neighbourhoods still up to seven times as likely to start degrees as their poorer counterparts.

tom.williams@timeshighereducation.com