Nicola Willis confirms end of university fees-free scheme

Friday, 8 May 2026

The Government has confirmed it will scrap the fees-free university scheme, after 2026.

Finance Minister Nicola Willis confirmed to Stuff that “this is the last year in which students completing their studies will be eligible for fees free”.

“We will have more to say about this in due course.”

The comment came after Winston Peters told Newstalk ZB on Friday the scheme was “wasteful spending”, and that the coalition planned to cut it it, in an announcement he described as a “Budget leak”.

Willis, in her statement did not comment on Peters sharing the budget information.

The fees-free programme covered first-time tertiary students’ final year of study up to $12,000.

The policy was introduced by the Labour government in 2018, initially covering students’ first year of study.

In 2025, the current government shifted the scheme to cover students’ final year of study.

“Targeting funding to the final year of study rewards students’ hard work and dedication, motivating them to complete their qualifications and achieve their goals,” Tertiary Education and Skills Minister Penny Simmonds said at the time.

In 2020, research found 60% of those who enrolled at the University of Canterbury in 2018 and 2019 were incentivised by the scheme, with 26% reporting they only enrolled because their first year was free.