Budget 2025 Unveils $2.5B Investment in Learning Support for Kiwi Kids

The New Zealand Government has announced a landmark $2.5 billion investment in learning support under Budget 2025, aimed at delivering the most significant uplift in education assistance in a generation. Education Minister Erica Stanford revealed a sweeping suite of initiatives designed to dramatically increase support for students with diverse learning needs, provide early interventions, and strengthen frontline teaching capabilities across the country.

A System-Wide Shift to Support Learning Needs

Minister Stanford emphasized that the current system has left too many children behind—facing long wait times or receiving no assistance at all. “We’re powering up support to the frontline and investing early to ensure our kids get the tailored help they need, and so that teachers have more time to teach the basics brilliantly,” she said.

This funding reflects a shift towards a social investment model—prioritizing early, evidence-based interventions and correcting systemic inequities that have historically under-resourced high-need learners.

Expanding Teacher Aide Hours and Learning Support Roles

One of the centrepieces of the investment is a significant increase in teacher aide hours. From 2028, schools will receive more than 2 million additional hours annually, providing essential hands-on classroom support.

Also included is a $192 million commitment to place a Learning Support Coordinator in every school with Year 1-8 students over the next three years. This will benefit approximately 1,250 schools and support an additional 300,000 learners across the country. These coordinators will work closely with families, teachers, and specialists to respond effectively to individual student needs.

Overhaul of Early Intervention Services

To strengthen support for the youngest learners, the Government is allocating $266 million to extend the Early Intervention Service (EIS) from early childhood through the end of Year 1. This initiative includes:

• Hiring over 560 new full-time equivalent (FTE) teachers and specialists

• Supporting the transition of 4,000 children into school settings

• Clearing waitlists so 3,000 children receive support faster

• Increasing the intensity of specialist support for the 7,100 children currently enrolled

• Adding up to 900,000 extra teacher aide hours annually by 2028

This initiative represents one of the most significant expansions of early childhood learning support in decades.

Structural Reform of ORS Funding

Another pivotal change is a $122 million investment to transform the Ongoing Resourcing Scheme (ORS). Historically plagued by funding limitations, ORS will now operate under a guaranteed funding model. Every student verified for ORS will receive support, ensuring equitable and reliable service for over 1,700 new learners forecast to join the scheme in the next four years.

This reform will also boost staffing levels, providing additional teacher aide support and specialist roles to meet the increased demand.

Strengthening Specialist Workforce and Infrastructure

Recognizing the importance of a skilled workforce, the Government is investing in several key areas:

• $43 million to hire an additional 78.5 FTE speech-language therapists, along with more psychologists and teacher aides, supporting 2,500 students with communication and behavioural needs.

• $3 million for professional development tailored for teacher aides working with neurodiverse and emotionally complex learners.

• $4 million annually to fund 25 intern educational psychologists, creating a sustainable local talent pipeline.

• $90 million in capital funding to build 25 new satellite classrooms for specialist schools, creating 225 student places and improving accessibility through property modifications.

Broader Educational Priorities Under Budget 2025

Beyond learning support, Budget 2025 delivers on several Government priorities:

• $298 million to bolster Curriculum and Assessment, with $132.2 million focused on accelerating literacy and math outcomes.

• $572 million in capital investment for school property development.

• $100 million in operational funding to maintain and upgrade school facilities.

• $150 million to grow the education workforce via leadership development, teacher supply, and professional certification.

• $104 million to enhance Māori learner success, including $50 million for classroom construction in Māori Medium and Kaupapa Māori schools.

• $140 million to launch a new national attendance service and reinforce regional efforts to improve school attendance.

Responsible Reinvestment and Reprioritisation

To fund these expansive changes, the Government identified $614 million in underspends and underperforming initiatives within the Vote Education portfolio for reinvestment. This aligns with the Government’s broader strategy of ensuring that every dollar is directed toward initiatives with demonstrable outcomes and benefits for students.

Minister Stanford concluded: “This investment recognises and responds to the growing number of children with additional learning needs and the pressure it places on teachers. Budget 2025 builds on the strong foundations we’ve already laid through teaching the basics brilliantly. We will continue to invest to raise achievement and close the equity gap in schools across the country.”

This Budget represents not only a historic investment but also a new chapter in the equitable and inclusive delivery of education in New Zealand, ensuring all tamariki have the tools they need to thrive.