Fees Free officially scrapped in upcoming budget

Why does the current coalition government want to axe Fees Free?

Minister of Finance Nicola Willis delivers the budget during Budget Day 2026 at Parliament. (Source: Getty)

To the shock of many students around the country, finance minister Nicola Willis confirmed that the Fees Free scheme introduced by the Labour government in 2018.

The news was technically leaked first by Winston Peters, when he, in response to being

asked about the upcoming budget, told Newstalk ZB that he considered Fees Free to be

‘wasteful spending’. Mind you, Winston Peters attended university in the 1970s, when

tertiary education was basically free, with state bursaries funding many of the academic

costs that students required. Willis stated that this would be the last year that students are eligible for Fees Free, and that there would be more information coming out about the scrapping of this scheme in due course. Meanwhile, David Seymour said that he and ACT were happy to see the scheme be cut, and that he was opposed to it from the very beginning. Seymours declared that there was no data to suggest that Fees Free had significantly improved enrollment numbers across universities, and that since its introduction eight years ago, it had cost taxpayers $350 million a year. As we wait for more information from the government on whether they’ll be proposing any alternatives to this scheme, students across the country and other political parties have been outspoken about their thoughts on the decision. Why are students against it? And how are people protesting across all the student associations? Students across New Zealand are opposing the Government’s decision to cancel the Fees Free tertiary education scheme, arguing that it will make higher education less accessible and place greater financial pressure on students and families already struggling with the cost of living.

Many students say the removal of Fees Free will increase student debt and discourage young people from pursuing tertiary education altogether. Student associations argue the policy was particularly important for low-income, Māori, Pasifika, migrant, and first-generation students, who often face greater barriers to entering university.

In a public statement, the Victoria University of Wellington Students' Association described the move as “a kick to the gut while students are already down.” The association argued the decision would worsen inequality, increase graduate debt, and weaken New Zealand’s future workforce. Student organisations say opposition to the policy is growing across campuses nationwide, with associations organising petitions, public statements, student meetings, and social media campaigns to pressure the Government to reconsider.

The Aotearoa Tertiary Students' Association has also criticised the cancellation, arguing that education should be treated as a public investment rather than a financial burden placed entirely on students and their families. For many students, the issue is deeply personal.

One student said the policy helped make university possible for their family.

“It’s so frustrating. My parents have worked hard as immigrants, and education is the only way for me and my siblings to get a better life. I’m so glad I got Fees Free in my first year, but I have two siblings who also want to pursue higher education. I don’t know how my parents will do it.”

Protests and criticism continue to spread through student associations nationwide, with many students arguing the cancellation sends the message that higher education is becoming increasingly unaffordable in New Zealand.

“At the University of Auckland, students have already begun taking action. A rally organised by the Auckland University Students' Association and Auckland University of Technology Students' Association attracted a large number of students who gathered to oppose the cancellation of Fees Free and call for more accessible tertiary education. The turnout reflected the strong concerns many students have about rising education costs and the impact the decision could have on future students.” - Kalana Piramanage, Editor-in-Chief

Photos from the AUSA x AUTSA Rally for Students (Designed by Rishabh Kanwal)

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