New Zealand unveils reforms to fix 'overly centralised' work-based learning model

Reforms seek to give industries more control over how they train people

New Zealand unveils reforms to fix 'overly centralised' work-based learning model

The New Zealand government is introducing vocational education reforms next year to revamp the "overly centralised" current work-based learning model.

A new Industry Skills Board (ISB) will be set up in January 2026 to set training standards, endorse programmes, and moderate assessments, according to Vocational Education Minister Penny Simmonds.

"This means vocational education and training providers will be able to manage all aspects of an apprenticeship or traineeship at an industry level, rather than taking direction from a centralised behemoth," Simmonds said in a statement.

Under the reforms, apprentices and trainees currently with Te Pūkenga will move to the ISBs for up to two years, while new students will enrol directly with new work-based learning private providers, polytechnics, or Wānanga.

"This is great for learners because it makes their learning more relevant to their employment, and it is beneficial to businesses who will gain access to more capable workers to boost their productivity and deliver economic growth," Simmonds said.

The vocational education reforms come amid gaps between the training of apprentices and the reality of their jobs.

"Industry representatives have made it clear that the current work-based learning model is not delivering because it has become overly centralised through Te Pūkenga," Simmonds said.

"As a result, the training of apprentices and other workers is often disconnected from the realities of the jobs they are working towards."

Tight timeframe ahead for reforms

Industry representatives have welcomed the announcement of the reforms, but have noted that they needed more details.

Alan Pollard, chief executive of Civil Contractors New Zealand, said the Industry Skills Boards will play a critical role in "setting standards and identifying the way forward."

"Training for civil construction workers is nearly all work-based due to the skills and knowledge required to be safe and do a quality job. So, a strong and stable work-based learning system is very important to meet the real-world needs of learners and employers," Pollard said in a statement.

Meanwhile, Business NZ chief executive Katherine Rich also pointed out that the timeframe for the new system is very tight.

"The new system is due to stand up on 1 January 2026, and we need clarity on the number of organisations, functions of the new organisations, and funding to support businesses delivering industry training," Rich said in a statement.