Labour has pledged to extend the Apprenticeship Boost scheme back to a two-year employer subsidy if it wins the 2027 election, reversing the current government's 2025 cutback.
Labour leader Chris Hipkins announced the policy at the party's congress in Wellington on 28 June. The scheme currently pays employers $500 monthly for one year when they take on apprentices in targeted occupations. Labour introduced the programme in 2020 as a two-year subsidy, but the Coalition Government narrowed its scope in 2025 to focus on first-year apprentices.
Under Labour's proposal, eligibility would broaden to cover trades including road construction, water treatment and hairdressing. Apprentices would receive a $1000 grant for tools and equipment, and Industry Skills Boards would get more funding to provide mentoring.
The expanded trades list, toolkit grant and mentorship elements would begin in 2027, with the two-year subsidy starting in 2028. Labour estimates the policy would cost $21 million in 2027/28, rising to $71.5 million by 2030/31, with an annual average cost of $56.5 million. The party projects 27,000 people would benefit by 2030/31, compared with 9,000 in 2025.
Hipkins said the party deliberately chose industries employing more women. "When National narrowed down the scope of it, they excluded the vast majority of the professions that include women in apprenticeships, and we didn't want to see that continue," he said.
National campaign chair Simeon Brown questioned the funding source, asking: "Is it higher taxes or more debt on future generations?" Hipkins said the money would come from future Budget allowances.