Frequently asked questions (FAQs) – changes to vocational education
Ngā pātai auau – ngā panoni ki te mātauranga ahumahi
These questions and answers may help with your understanding of the changes the government is making to the vocational education system.
These questions and answers may help with your understanding of the changes the government is making to the vocational education system.
Can you please explain the different groups involved in the changes?
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ISBs |
Industry Skills Boards are new entities that were established formally from 1 January 2026. They have a core role of standard setting for vocational education across their allocated sectors. They will also work to share the voice of industry and advise TEC about workforce needs. Each ISB is set up through an Order in Council and is industry led. (At least six out of eight board members come from industry.) |
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EAGs |
These groups will exist from mid-2026 until the end of the year to support the set-up of the remaining polytechnics that are being established at the beginning of 2027. Their focus is on establishing the regional polytechnics as they are split out from the national entity of the New Zealand Institute of Skills and Technology (NZIST). |
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Work-based learning business divisions |
Before the Reform of Vocational Education in 2023, all work-based training was delivered by Industry Training Organisations (ITOs). In 2023, most work-based training done in ITOs moved into NZIST, becoming the work-based learning divisions. Many entities continued to use their ITO branding even though ITOs did not technically exist in the system from 2023. Some of these work-based learning divisions of NZIST moved into ISBs on 1 January 2026, for up to two years. |
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PTEs |
PTEs are registered with and quality assured by NZQA. They are training providers who have met specific requirements. Training providers (that are not a university, polytechnic or wānanga) must hold PTE registration to be eligible for TEC funding. PTEs may be companies or not-for-profit organisations. |
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VET |
Vocational education and training includes all provision at Levels 3 to 7 (non-degree) on the New Zealand Qualifications and Credentials Framework, as well as Level 2 when it is delivered in the workplace. It does not include degree-level provision or foundation education. VET can be delivered in the workplace (work-based), in a classroom/campus setting (provider-based), or by distance and online learning (extramural). |
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TEC |
TEC’s core role in the VET system is funding. We fund the provision at this level in line with funding mechanisms from government. |
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NZQA |
NZQA assures the quality and integrity of New Zealand qualifications. They register providers, quality assure programmes and, for some areas, act as a standard setter. They also oversee the Education (Pastoral Care of Tertiary and International Learners) Code of Practice.
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Work-based learning divisions
When the work-based learning divisions moved into ISBs on 1 January 2026, did they stop enrolling new learners?
No. All work-based learning divisions are still enrolling new learners from 1 January.
When we reach the point where there are sufficient providers for a sector, we will:
(a) not fund additional providers, and
(b) require ISBs to cease enrolling new learners (if provision remains with them).
TEC will work with ISBs to understand the network of work-based learning provision (number and types of providers) that industry needs. This will inform the funding of new providers, and the expectations on the work-based learning divisions.
The new system, including ISBs, commenced operating from 1 January 2026, and we expect it to take time for this information to be gathered from industry.
Why has work-based learning moved to the ISBs?
We appreciate that learners, employers and educators may have some concerns about possible disruption to work-based training because of the upcoming changes. The transition period (2026–2027) has been put in place to minimise disruption for learners and employers as the functions currently under NZIST work-based learning lift-and-shift unchanged into the ISBs.
What is happening with ITOs?
ITOs ceased to exist in 2022, although many NZIST work-based learning business divisions continued to use their old ITO names. NZIST work-based learning divisions have moved temporarily into ISBs. This work-based learning will move into providers (including polytechnics, wānanga and PTEs) by 31 December 2027.
Industry Skills Boards
How many ISBs are there and what do they cover?
There are eight ISBs with the broad coverage areas of: transport; construction and specialist trades; food and fibre; energy and infrastructure; manufacturing and engineering; services; education, health and community; and electrotechnology and information technology.
Why have you putt standard setting and delivery/arranging of training back together?
The training functions that are moving into the ISBs will only be there temporarily. By 1 January 2028, no training will be delivered by ISBs. During the transition period, the training unit will sit within the ISB but will not be fully integrated into it.
How will you ensure ISBs manage the conflict of interest involved in being both the standard setter and a training deliverer?
During the transition period, each training unit will sit within the relevant ISB but will not be fully integrated into it, as this arrangement is only temporary.
If industries are grouped together in one ISB, will they stop having unique qualifications?
No. ISBs are able to create and maintain standards, credentials and qualifications that are specific to the sectors they cover – in the same way Workforce Development Councils (WDCs) did.
I am worried that ISBs will only look after work-based learning.
ISBs will create and maintain standards, credentials and qualifications for all the sectors they cover at the vocational level. This will include products that support provider-based (including polytechnic) delivery, and extramural programmes as well as work-based learning.
How will industry continue to have a voice in the system when there is only provider-based learning for their sector?
An ISB will take on vocational standard setting for its entire sector, not just for the work-based learning elements. This means it will be responsible for all standards, credentials and qualifications for that sector.
The term "industry" is very broad. When you say industry will inform choices who do you mean?
ISBs have a role in communicating industry voice, and their governance will be industry led. ISBs will work with established industry groups and associations as well as employers and other sector stakeholders. ISBs will be expected to put in place mechanisms that identify the needs of all industries they represent.
PTEs that deliver work-based training
What happens to work-based learners and apprentices who are studying through a PTE?
There is currently a small network of PTEs that are funded by TEC to deliver work-based learning. These PTEs will be able to continue enrolling and delivering the provision they currently do.
All TEC-funded providers are given a funding allocation for the year and their enrolments must stay within that allocation. There is no guarantee of funding for providers that enrol above their allocation.
Who is responsible for determining who is eligible to become a new PTE or work-based provider? What will the criteria be?
NZQA determines whether an organisation has the appropriate capability to become a registered provider (PTE). TEC determines whether the provider's offering is suitable for government funding. Funding decisions will be informed by industry preferences about a network of provision.
How does a PTE start being TEC funded to deliver work-based learning?
In the upcoming months, ISBs will engage with industry and employers to understand what they want the network of work-based learning provision to look like in the future. This engagement will take place before the range of providers is expanded. The outcomes of this engagement will inform any decisions about providers who wish to start or expand their provision.
For more information, see Work-based learning information for tertiary education providers.
What are the new funding parameters for work-based learning? This is a critical pathway for all providers as business owners.
See the TEC website for work-based learning funding rates.
Managed apprenticeships
Do managed apprentices stay with their polytech provider or move to an ISB in January 2026?
Currently, no changes are expected for managed apprentices already enrolled with a polytechnic.
We are currently working through the detail of what managed apprenticeships will look like in the future. Like other work-based provision, we do not want to see expansion before ISBs have had the opportunity to consider the network of provision needed for their sectors.
The stand up of regional polytechnics
Will regional polytechnics be able to offer programmes nationally?
Institutes of Technology and Polytechnics (ITPs) are being set up to deliver regionally, to maximise the strength of local knowledge. We expect that this will be the main focus of their provision, however, we will consider other arrangements if these have the support of industry.
Secondary/tertiary provision
What is happening with standard setting and delivery for secondary to tertiary transition programmes like Gateway and Trades Academies?
These programmes will be supported by the relevant Industry Skills Board through their standard setting function, and delivered through schools, employers and tertiary education organisations.