Degree apprenticeships and access to student loans and allowances are among the changes proposed in a new Skills Group white paper. It calls for an overhaul of New Zealand’s apprenticeship system.
The Future of Apprenticeships argues that after years of structural change to vocational education, attention now needs to shift. The paper says the question is no longer who runs the system, but what it actually offers apprentices and the employers who train them.
Skills Group chief executive Rosanne Graham says New Zealand’s apprenticeship model hasn’t kept pace with changes in industry, technology and the workforce.
“We have spent much of the past seven years restructuring vocational education, but changing who runs the system does not necessarily change the experience of the apprentice or the employer.
“The next step needs to be about the apprenticeship itself – making it easier to enter, recognising the skills people already bring, creating opportunities to progress and better supporting the employers who train them.”
The paper calls for advanced apprenticeships and degree-level apprenticeships. These would let people keep progressing through work-based learning, rather than having all apprenticeships focused at Level 4.
In England, higher apprenticeships at Level 4 and above have grown from 13% of apprenticeship starts in 2017/18 to 40% in 2024/25. Apprenticeships at Level 6 and 7, which are degree level, now account for roughly one in six starts, according to research cited in the white paper.
“There is no reason why earning while learning should have to stop at Level 4,” Graham says.
“Industries are changing rapidly and many roles now require increasingly advanced technical and professional skills. Apprenticeship pathways should be capable of developing those higher-level skills while allowing people to remain in paid employment. The higher levels also start to address some of the parity of esteem issues in the sector.”
The white paper also recommends giving apprentices and other work-based learners access to the student loans and allowances available to other tertiary students.
“If we regard an apprenticeship as tertiary education, we need to ask why the financial support available to someone studying full-time is different from that available to someone completing their tertiary qualification through an apprenticeship,” Graham says.
“Apprentices are working and paying tax while learning and developing skills the economy needs. The fact that much of their learning takes place at work shouldn’t put them at a disadvantage.”
The report comes as apprenticeship participation has dropped sharply. Ministry of Education figures show total apprentice numbers fell 14% between 2024 and 2025, while new entrants fell 24%.
The five-year qualification completion rate has also slipped. It was 54% for apprentices who started in 2016 and 40% for those who started in 2021.
“We have a tendency to think about skills when we’re already short of them,” Graham says.
“We wouldn’t wait until we’ve run out of materials before thinking about our supply chain. We shouldn’t wait until we’ve run out of skilled people before thinking about our skills pipeline.”
The paper also calls for more support for employers who take on and successfully train apprentices. It wants targeted help for under-represented groups to enter and complete apprenticeships too.
The white paper makes eight recommendations.
1. Recognise and fund the specific skills people gain, rather than focusing funding on whole qualifications.
2. Let apprentices progress when they’re ready, based on a competency assessment, rather than on how long they’ve been training.
3. Introduce advanced and degree-level apprenticeships.
4. Make apprenticeship training more flexible across industries and recognise skills people already have.
5. Update funding rules so employers and training providers can deliver apprenticeship training together more easily.
6. Give work-based apprentices access to the same student loans and allowances as other tertiary students.
7. Reward employers for taking on apprentices and supporting them through to completion, not just for signing them up.
8. Provide targeted support to help under-represented learners enter apprenticeships, stay engaged and complete them.
Graham says the changes don’t require another wholesale restructuring of vocational education.
“We don’t need another round of structural upheaval.
“We need an apprenticeship system that opens up opportunities for people, supports employers to train the workforce they need, and allows apprentices to progress as far as their skills and ambitions can take them.
“Apprenticeships are one of our oldest models of education. With the right changes, they can also be one of the most relevant to New Zealand’s future.”
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