The Government’s decision to remove the final year of the Fees Free tertiary education policy is facing fierce criticism from unions and education advocates, who say young New Zealanders are being forced to carry the burden of a struggling economy.
The New Zealand Council of Trade Unions Te Kauae Kaimahi says the move will leave students with larger debts at a time when many young people are already facing rising unemployment, fewer job opportunities, and increasing financial pressure.
The criticism comes as new figures show youth unemployment has climbed to 17.3 percent, while the number of young people aged 15 to 24 not in education, employment, or training has reached its highest level since 2009.
Data also shows tens of thousands fewer young people are currently employed compared with when the Government first took office, while changes to welfare eligibility are expected to reduce support for some teenagers seeking work.
Union leaders argue removing the final year of free study will disproportionately affect students from low-income families who cannot rely on financial support from parents or whānau. They warn the policy change will deepen long-term inequality by increasing student debt and delaying major life milestones such as home ownership and family stability.
The CTU says many students entering higher education are training for critical workforce shortages in healthcare, teaching, engineering, science, and other essential sectors, and argues the Government risks pushing more young New Zealanders overseas in search of better opportunities.
The decision is also expected to become a flashpoint ahead of the next Budget, with growing debate around public spending priorities and whether the Government is investing enough in future generations.
Critics say the move reflects a broader pattern of cuts affecting working people, students, and public services while significant funding continues to be directed toward other economic and business priorities.
The Government has previously defended changes to the Fees Free scheme as part of wider fiscal restraint measures and efforts to refocus spending.
Student groups and unions are expected to continue campaigning against the policy as pressure mounts over the country’s worsening youth employment situation and rising living costs.
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