Apprenticeship funding explained

While The Targeted Training and Apprenticeship Fund (TTAF) ended on 31 December 2022, learners and employers can still access several other avenues of support 

From January 1 2023, some apprentices and other learners are eligible for free fees under the Fees Free scheme.

Fees Free is targeted towards first-time learners and covers up to $12,000 for one year’s study or two years’ training. It is paid directly to your education organisation.

To be eligible, trainees must be:

• A New Zealand citizen or resident (conditions apply).
• Enrolled in a school in or after 2021 or not have undertaken more than half a year of equivalent full-time tertiary education at level 3 or above in any country.

For a provider-based study, your course must be funded by the Tertiary Education Commission (conditions apply).

For work-based learning, your course must:

• Be at NZQCF level 3 or above.
• Be approved by the New Zealand Qualifications Authority (NZQA).
• Be funded by the TEC through the Non-Degree Delivery at Levels 3-7 on the New Zealand Qualifications and Credentials Framework and all Industry Training (DQ3-7) fund, and would previously have been funded through the Industry Training Fund.
• Not be part of a school learning programme or secondary-tertiary programme.
• Comprise of at least 120 credits.

For more information, visit feesfree.govt.nz/eligibility-criteria.

For 2023, an apprenticeship in carpentry through BCITO incurs a $1,750 sign-up fee and a $850 subsequent annual fee. That means an apprentice can get the first two years of their training for free, and only have to pay for their third or fourth year, if applicable.

Get boosted

Employers can also apply for the Apprenticeship Boost through the Ministry of Social Development (MSD).

“Employers can receive up to 24 months of support with payments of $500 per month per apprentice, up to a maximum of $12,000 for each apprentice who is enrolled in a BCITO Level 4 qualification that contains 120 credits or more,” said a BCITO spokesperson.

Employers are able to receive the payments for a maximum of 24 months or until the scheme ends in December 2023.

Businesses will need to provide some information first, such as business trading name, Inland Revenue (IRD) number and GST number. Employers will also need to re-confirm with MSD each month.

Apprentices will need to give their employer their IRD number, qualification name and training start date. More information can be found at bcito.org.nz/employers/boost .

Helping the industry

Apprentices are certainly seeing the benefits to the Apprenticeship Boost and the Fees Free campaign.

“My employer has had a big boost through the scheme,” said Wairarapa apprentice Conrad Kotze. “It’s expensive to train new people. Every dollar helps at this moment.”

Meanwhile, Canterbury learner Ben McDrury said that Fees Free helped him get into the trades.

“I think the scheme has been the most important programme for apprentices. One of the most attractive things for me was being able to make a steady income and not have to pay for the learning.

“In addition, the boost has created an increase in spaces available to apprentices, as more businesses look to take one or more on, and the Fees Free encourages apprentices into the industry – it creates a good cycle.”