Labour Party leader Chris Hipkins has pledged to restore the two-year Apprenticeship Boost subsidy by 2028 if his party wins the upcoming election. The policy, announced at the party’s congress in Wellington, aims to increase domestic workforce participation by providing $500 monthly payments to employers for two years, alongside new grants for apprentice toolkits and expanded trade eligibility.
What the policy changes involve
The proposed plan represents a shift from the current government’s approach. In 2025, the Apprenticeship Boost scheme was narrowed to focus exclusively on first-year apprentices in specific occupations. According to Chris Hipkins, the Labour Party intends to expand the list of qualifying trades to include road construction, water treatment, and hairdressing. Additionally, apprentices would receive a $1000 grant for tools and equipment, with extra funding provided to Industry Skills Boards for mentorship programs. These specific expansions are slated to begin in 2027, with the full two-year subsidy restoration following in 2028.
Financial projections and context
Labour has estimated the cost of the expanded scheme at $21 million for the 2027/28 period. This figure is expected to rise to $71.5 million by 2030/31 as enrollment numbers grow, resulting in an average annual cost of $56.5 million. This policy follows a period of shifting priorities in vocational training. In the 2026 budget, the current government discontinued final-year fees-free funding, redirecting those resources toward trades academy placements. While the government previously stated that targeting the scheme was necessary to keep skills “in sync” with national needs, Hipkins told supporters the goal is to ensure young New Zealanders build their futures domestically rather than moving overseas.
What could happen next
The implementation of this policy depends on the outcome of the upcoming election. If Labour forms the next government, voters may see a return to the two-year subsidy model originally launched in 2020. However, Hipkins has acknowledged that a Labour-led government would not be able to fix every issue immediately, noting that the party would avoid repealing current legislation simply for the sake of change. If National remains in power, the current targeted approach to apprenticeship funding is likely to continue, as the two parties currently present voters with different visions for the country’s economic and employment future.
