Further to the Minister's reply to Written Parliamentary Question 59187, what is the percentage increase or decrease in the funding received by each university in 2025 compared to 2026?

Answer

I refer the Member to the attached Table, for the percentage change in total amount of funding allocated by the TEC for universities between 2025 and 2026. TEC advised that for accurate and like for like comparison, there are three funds not included in this calculation, because they are: • not administered by TEC (Fees Free) in 2026, or • closed (National Centre for Tertiary Teaching Excellence and Learner Component – Māori and Pacific) in 2026. From 1 January 2026, the operation of Fees Free was moved from TEC to Inland Revenue Department. This means the TEC no longer allocated first-year Fees Free funding to Tertiary Education Organisations from 2026, which accounts for some of the decrease in funding between 2025 and 2026. Other contributing factors to the reduction in funding include the cessation of the time-limited funding rate increase (4% in 2024 and 2025) and the closure of some funds (such as, National Centre for Tertiary Teaching Excellence). Time-limited funding was intended as a short-term support for the sector during a period of substantial financial pressure due to the impacts of Covid-19, falling domestic student numbers, low international enrolments and high inflation. These pressures have now started to ease and demand for both domestic and international tertiary education has increased to a sustainable level.

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