The Government has confirmed it will scrap the fees-free university scheme in the upcoming Budget, following a "leak" by New Zealand First leader Winston Peters.
Finance Minister Nicola Willis said this year would be the final one in which students completing their studies would be eligible for fees-free support.
Fees-free study was introduced under the previous Labour government and provided up to $12,000 in tuition fees for the first year of study or the first two years of work-based learning.
After coming to power, the coalition Government revised the policy to instead cover the final year of tertiary education study.
Peters was asked on Newstalk ZB on Friday whether the scheme was "wasteful spending" and whether the coalition would cut it in the upcoming Budget.
"I’ll give you a Budget leak right here, right now, the answer is yes," he said.
"We are going to reshape and repurpose it for the trades and all sorts of industries where we do need it and where we can get a far better payback for our money and pay far less money doing it."
In a statement to 1News today, Willis confirmed Peters' statement that "this is the last year in which students completing their studies will be eligible for fees free".
"We will have more to say about this in due course."
ACT leader and Deputy Prime Minister David Seymour said the policy had cost nearly $350 million a year without significantly improving access to disadvantage students.
"It reduced some students' loans, but the same students graduated into a country with more Government debt, including extra debt from tire-kickers who took the free year and never finished their course."
Seymour said ACT opposed the policy when it was introduced and the party was "proud it's going now".
"We came into Government to cut wasteful spending so the country has a sustainable future. Today's announcement by the Finance Minister confirms we are headed in the right direction."
SHARE ME