Extra $2 billion for education

3.00pm

Education will receive a $2 billion boost over four years, with the pre-school and tertiary sectors gaining the most.

The funding will increase the education budget by $135.2 million in 2004-05, taking it to $8.7b.

Pre-school education will receive an extra $365 million, while the tertiary sector gets an extra $259m. Both are over four years.

The pre-school funding will allow, by mid 2007, 20 hours' free attendance per week at a community-based early childhood education service for three and four year olds.

As well, rural early childhood education services will, for the first time, have guaranteed minimum funding of either $15,000 or $20,000 a year, depending on their size.

The $365m also includes an extra $22m for inflation-adjusted increases to early childhood education funding rates, $13m for programmes to help teachers better assess children's needs and to implement professional standards in kindergartens, and $23m to increase specialist support for special needs children.

"Our Government is firmly committed to giving all young New Zealanders the opportunity to have the best possible start in education and to develop a lifetime love for learning," Education Minister Trevor Mallard said.

"Research tells us that intensive and regular early childhood education is critical to ensuring our kids do well later in life."

Budget 2004 marked the start of a new are for early childhood education and was the first major funding change in the sector since 1989, Mr Mallard said.

The $259m for the tertiary sector includes $110m for expanding the student allowance scheme and access to the Student Loan Scheme, as well as increased funding for Student Job Search.

The key for many will be an increase in parental income thresholds used to determine allowances.

The lower threshold will increase from $28,080 to $33,696 and the upper threshold from $50,572 to $62,148. As well, parental income thresholds will be inflation adjusted annually so eligibility will no longer be eaten away.

As well, changes are being made to student allowance regulations to bring them into line with the Bill of Rights. They include:

* Single students who have been married will need to show exceptional circumstances when applying for an Independent Circumstances Grant;

* Entitlement to an Independent Circumstances Grant will be removed if he or she has been working for 96 weeks.

* Married students under 25 with no dependents who apply for an allowance will have a parental income test but not their spouse's income will not be tested.

The student allowance changes are expected to affect 7000 students next year.

The Student Loan Scheme will be extended to allow students studying between 0.25 and 0.3 of a full-time course to get a loan, subject to conditions.

As well, Student Job Search will be boosted by $2.4m.

Mr Mallard said all New Zealanders, regardless of their background, should have the change to reach their full potential through a top-quality education system.

"Our budget 2004 education package ensures we can maintain our current performance and continue the momentum," he said.

- NZPA