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The Government is increasing funding for private schools in Budget 2025.

Associate Minister of Education, Act Party leader David Seymour, said the spending boost would support diversity and choice in the country’s education system.

Budget 2025 puts $15.7 million over the next four years into increasing private school subsidies. Annual funding will rise from $41.6m to $46.2m.

It is the first increase in private school funding in 15 years, Seymour said, a period when the total independent school roll rose from about 27,600 in 2010 to 33,000 in 2024.

Associate Education Minister David Seymour has unveiled $15.7 million of new funding for private school subsidies. Photo / Mark Mitchell

Seymour said: “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.

“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,” he said.

“In 2010 the Government said that it was appropriate to fund the independent school sector at $41.6m per year to divide between schools based on their roll size. Fifteen 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.”

Seymour said private schools’ costs had increased with inflation.

“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,” he said.

Other changes include an automatic yearly reconsideration of private schools’ funding.

“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,” he said.

“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.”

Raphael Franks is an Auckland-based reporter who covers breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.

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