NZ’s costly fees-free scheme did little to widen access to tertiary education – new study

New Zealand's fees-free tertiary education scheme, introduced in 2018, failed to meaningfully expand access to higher education for disadvantaged students, according to recent research. The policy removed tuition costs but did not address systemic barriers that prevent lower-income and marginalized communities from enrolling.

The government scrapped the scheme in 2022, citing fiscal pressures. Analysis shows the program delivered limited returns on its investment despite substantial public spending. Students from wealthy families continued to dominate tertiary enrollment, while participation rates among Maori, Pacific Islander, and low-income students remained largely unchanged.

Researchers identified the core problem: tuition fees represent only one obstacle to university access. Deeper structural inequalities shape educational pathways long before students reach tertiary age. These include inadequate support in secondary schools, lack of mentorship, insufficient career guidance, and financial pressures that force low-income youth into work rather than study. Removing tuition costs alone cannot overcome these entrenched disadvantages.

The study reveals that students from poorer backgrounds often lack the social capital and networks that facilitate tertiary enrollment. They face information gaps about degree options and career prospects. Many lack family members with university experience to guide them through applications and degree selection.

The research suggests policymakers must target interventions earlier in the education pipeline. Secondary school improvements, enhanced career counseling, and financial support for living costs during study would better address enrollment disparities than tuition fee removal alone.

New Zealand's experience reflects findings from other countries that have attempted broad fee reductions without complementary support systems. Simply eliminating one cost fails to generate equitable access when multiple barriers operate simultaneously.

The termination of fees-free enrollment saves government revenue but sidesteps the real challenge. Without addressing fundamental inequalities in secondary education and student support services, future policy will likely reproduce existing disparities regardless of tuition pricing.