Although Hipkins said that at level 3 there would be more flexibility, it would take a while for most schools to reopen.
New Zealand is just past the halfway point in the four-week lockdown period – however the Government has always maintained that the lockdown can be extended.
Prime Minister Jacinda Ardern has so far provided no confirmation as to whether level 4 would be extended.
Hipkins said the key measure as to when schools would reopen would be based on health advice.
The Government was working on a number of different packages and initiatives in this area for when New Zealand goes back down to level three.
Hipkins thanked the entire educational community for "keeping the system running" over the lockdown.
"It's been incredibly difficult," he said.
He also thanked parents who have their kids at home – "I want to take my hat off to them".
Hipkins also had a message for those parents who are helping with their children's learning over lockdown: "Be reasonable of your expectations of yourself".
He also warned parents to be "reasonable" when it comes to their expectations of their young children's productivity.
So far, 20,000 work book packages have been delivered to kids so far – that number will jump to 60,000 next week, Hipkins said.
And the Government is gearing up to be in a position where it can deliver half a million workbooks across the country, he said.
These were primarily for those students who don't have access to internet or the appropriate devices.
If costs continue to be a barrier for learning, the Government would look into that, Hipkins said.
"We will make sure it [cost] is not a barrier."
Asked if the Government was planning on providing a support package for schools heavily impacted by the drop in international students, Hipkins said: "We will have to do some modelling on that".
He pointed out that the wage subsidy scheme was available to those in the tertiary education sector.
But he said the Government will not subsidise international students.
Lockdown casualties: Benefit numbers surge by 23,000
The number of people claiming benefits has jumped by more than 23,000 people, compared to this time last year.
According to just-released monthly data, 310,000 people are now on benefits. That's an 8 per cent increase compared to March last year.
Last week alone, numbers rose 10,700, mostly for the JobSeeker benefit.
The number of people seeking the JobSeeker payment is up more than 15 per cent on the same time last year – or 20,000 more people.
However, most of the increase does not take into account the impact of Covid-19.
"You can expect an increase that's for sure," Minister for Social Development Carmel Sepuloni told MPs on the Epidemic Response Committee this morning.
About 152,000 people now claim the unemployment benefit - an increase of almost 6000 people in the past month alone.
Within a week, 22,000 applied for the benefit, however many of these were duplicates and not all were approved.
He said this week the impact of Covid-19 would be a "quantum" worse than that of the 2008/09 global financial crisis (GFC), when unemployment rose to 6.7 per cent.
Sepuloni is expected to be questioned about the increase, and whether or not the ministry can handle it.