Election 2026: Labour proposes Apprenticeship Boost expansion

Labour would reset the Apprenticeship Boost scheme back to two years from 2028, if re-elected.

By Giles Dexter of RNZ

Labour leader Chris Hipkins has announced the election policy to supporters at the party congress in Wellington.

Started in 2020, the scheme pays employers $500 a month for one year to take on apprentices, helping pay for things like wages and ensuring apprentices can keep earning while training.

In 2025, the scheme was pegged back from a two-year subsidy to instead focus on first-year apprentices in targeted occupations.

Labour makes fresh election pledge to attract more apprentices - Watch on TVNZ+

At the time, the government said targeting the scheme would ensure the skills and qualifications people were getting were "in sync" with what the country needed.

Hipkins, who first launched the policy as education minister, told supporters Labour wanted to see more people in work and keep them in New Zealand, instead of seeing them head overseas.

"Every young New Zealander deserves a genuine choice to build their future here," he said.

The trades that qualify would also be expanded to include road construction, water treatment and hairdressing.

Apprentices would also get a $1000 grant for tools and kit, and the Industry Skills Boards would receive additional funding to scale up mentoring and other support.

The expansion of new trades, the toolkit grant and the piloted mentorship scheme would start in 2027, while the extension to two years of subsidies would start from 2028.

Labour costed the scheme at $21 million in 2027/28, increasing to $71.5 million in 2030/31, as more people took advantage of it - an average of $56.5 million a year.

Both major parties are shifting towards more apprenticeship training.

As part of this year's Budget, the government scrapped the final year fees-free funding, with a portion of the money redirected towards more trades academy places.

Hipkins rallies the troops

Speaking to Labour members, delegates and candidates, Hipkins said New Zealand did not have three more years to waste.

"The fight is on!" he said.

Accusing National of everything from increasing unemployment, raising the cost of living and the cancellation of TV show Fair Go - that one perhaps less seriously - Hipkins said New Zealanders were doing the right thing, but getting the wrong results.

"Christopher Luxon and his National government are out of touch and out of time," he said. "They're asking for three more years, so they can inflict more cuts, more division and more decline.

"We can't let that happen."

Hipkins' address followed a path that many of his speeches have traversed of late, with an admission that Labour could not fix everything and would not repeal legislation from the current government for the sake of it.

"I won't pretend we can fix it all straight away," he said. "We'll focus on what matters most and we'll deliver it."

He told supporters the choice voters faced this year was not just one between Labour and National.

"It is a choice between building our future here or watching it built somewhere else."