Universities receive $234m to fund enrolments as fees rise

Budget 2026 has allocated $234 million to enable the Tertiary Education Commission to fund 99% of enrolments in 2026 and 2027.

The funding addresses warnings from the commission that it did not have sufficient funding to subsidise all enrolments, with some institutions missing out on millions of dollars in government funding. University enrolments have increased about 5%.

Auckland University deputy vice-chancellor education Sarah Young welcomed the Budget decision. The government covers about 75% of the cost of student education and provides more support to students than the OECD average, Young said.

However, subsidy rates were not increased in the Budget. Universities can raise student fees by up to 6% next year, the third consecutive year the government has allowed fee rises of up to 6%. The fees-free scheme has ended.

Political economist and higher education researcher Nicolas Lewis said young people were worse off because of the Budget. "They are not getting their final year of fees paid, they're facing higher fees from universities that will put their fees up to cover increasing costs and they are walking out of university to far more uncertain labour market positions," Lewis said.