Hon David Seymour
Associate Minister of Education

Diversity and choice in New Zealand’s schooling system will be supported by increasing funding for independent (private) school subsidies, Associate Education Minister David Seymour says.

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 by 11 percent, from $41.6 million to $46.2 million.

“Independent schools are an important part of New Zealand’s education landscape, offering diversity and choice to parents. If parents want to send their children to independent schools, they should be able to,” Mr Seymour says.

“Often parents are making big sacrifices because they would prefer to send their child to an independent school. They pay just as much tax as anyone else, yet the money that comes back for their kids’ education has effectively been getting smaller over the last 15 years.

“In 2010 the Government said that it was appropriate to fund the independent school sector $41.6 million per year to divide between schools based on their roll size. 15 years later, that amount is still the same. In 2010, there were around 27,600 students enrolled in independent schools. This grew to over 33,000 in 2024.

“Inflation and costs for schools have increased, and independent school enrolments have grown. This means schools receive funding that is worth significantly less than they need. For example, independent schools pay more in GST than they receive in funding. 

“Alongside an increase to total funding, I am making changes so that funding for independent school subsidies will automatically be considered annually to accommodate roll growth. This will mean independent school funding increases will work the same way as any other school.

“Independent schools are a crucial part of the education system. The sector has been seeking changes to ensure they can continue to support students. This funding addresses key issues they have raised and gives independent schools support that is long overdue.”

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