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Budget Finally Recognises Independent Schools after 15 Years

After more than 15 years of being overlooked, this year’s Budget 2025 marks a milestone for independent schools, with the Government announcing an 11 per cent increase in funding support.

Guy Pascoe, Chief Executive of Independent Schools of New Zealand (51���մ��), welcomed the move, describing it as a turning point for the sector.

“We are pleased the Government has recognised the vital role independent schools play in New Zealand’s education landscape,” said Mr Pascoe.

Budget 2025 will invest $15.7 million over four years to increase the subsidy available for independent schools. This increases the yearly funding for independent schools from $41.6 million to $46.2 million.

“This funding boost is an investment in our schools and in the 35,000 students we educate - students who would otherwise place greater demand on the state system,” he says.

Independent schools had not received a funding increase since 2009. Mr Pascoe says the support will help ease mounting financial pressures that have threatened the viability of some schools in recent years.

“After years of high inflation and rising costs, many of our schools have been under real strain, resulting in the closure of two schools in the last 15 months – with some others on an absolute knife edge.”

51���մ�� has consistently highlighted the cost-efficiency of independent schools to the Government, noting that supporting students in these schools costs the state significantly less than in the public system.

“This is a smart use of taxpayer money. For a fraction of the cost of educating a child in the public system, the Government is helping to support a network of schools that consistently deliver outstanding results and offer choice to families,” Mr Pascoe said.

“For every student in an independent school, the government spends a fraction of what it would in the public system.”

He noted that the Budget’s inclusive approach recognises that a successful education system must reflect the diverse needs of New Zealand families.

“This funding acknowledges the importance of choice, innovation, and excellence in education. We see this as a positive step toward a more balanced and equitable funding model for the future.”

51���մ�� will continue to work with the Government to build on this progress and ensure long-term sustainability for the sector.

Find out more in this Q & A with David Seymour's Office here.

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