Source: Tertiary Education Commission
Can you please explain the different groups involved in the changes?
ISBsIndustry Skills Boards
Industry Skills Boards are new entities that will be established formally from 1 January 2026.
They have a core role of standard setting for vocational education across their allocated sectors. They will also work to share the voice of industry and advise TEC about workforce needs.
Each ISB will be set up through an Order in Council and will be industry led. (Six out of eight board members will come from industry.)
ISB EAGsIndustry Skills Boards Establishment Advisory Groups
These groups will exist from mid-2025 until the end of the year to support the establishment of the new ISBs.
Their focus is on governance and organisation establishment rather than industry advocacy.
ITPsInstitutes of technology and polytechnics
ITPs are independent regional polytechnics that will be established in 2026. The location of the first of these will be decided by the government in mid-2025. Further decisions will be made during 2026.
ITP EAGsInstitutes of Technology and Polytechnics Establishment Advisory Groups
These groups will exist from mid-2025 until the end of the year to support the set-up of the ITPs that are being established at the beginning of 2026.
Their focus is on establishing the regional polytechnics as they are split out from the national entity of Te Pūkenga.
ITOsIndustry training organisations
Before the Reform of Vocational Education in 2023, all work-based training was delivered by ITOs. In 2023, most work-based training done in ITOs moved into Te Pūkenga, becoming the work-based learning divisions. Many of the entities continued to use their ITO branding even though ITOs did not technically exist in the system from 2023.
These work-based learning divisions of Te Pūkenga will move into ISBs on 1 January 2026, for up to two years.
PTEsPrivate training establishments
PTEs are registered with and quality assured by NZQA. They are training providers who have met specific requirements. Training providers (that are not a university, polytechnic or wānanga) must hold PTE registration to be eligible for TEC funding. PTEs may be companies or not-for-profit organisations.
VETVocational education and training
Vocational education and training includes all provision at Levels 3 to 7 (non-degree) of the New Zealand Qualifications and Credentials Framework, as well as Level 2 when it is delivered in the workplace.
It does not include degree-level provision or foundation education.
VET can be delivered in the workplace (work-based) in a classroom/campus setting (provider-based) or by distance and online learning (extramural).
TECTertiary Education Commission
TEC’s core role in the VET system is funding. We fund the provision at this level in line with funding mechanisms from government.
NZQANew Zealand Qualifications Authority
NZQA assures the quality and integrity of New Zealand qualifications. They register providers, quality assure programmes and, for some areas, act as a standard setter. They also oversee the Education (Pastoral Care of Tertiary and International Learners) Code of Practice.
Work-based learning divisions
When the work-based learning divisions move into ISBs on 1 January 2026, will they stop enrolling new learners?
No. At this point we expect that all work-based learning divisions will still be enrolling new learners from 1 January.
When we have reached the point where there are sufficient providers for a sector, we will:
(a) not fund additional providers; and
(b) require ISBs to cease enrolling new learners (if provision remains with them).
ISBs will have the role of informing TEC about the network of work-based learning provision (number and types of providers) that industry needs. This will inform the funding of new providers, and the expectations on the work-based learning divisions.
ISBs will begin this work in January 2026, and we expect it to take time for them to gather this information from industry.
Why is work-based learning moving to the ISBs?
We appreciate that learners, employers and educators may have some concerns about possible disruption to work-based training because of the upcoming changes. The transition period (2026–2027) has been put in place to minimise disruption for learners and employers as the functions currently under Te Pūkenga work-based learning lift-and-shift unchanged into the ISBs.
Will the work-based learning divisions of the new ISBs be able to continue developing programmes? Or does all new development stop on 1 January 2026?
The focus for work-based learning during the transition period (where the training units sit within the ISBs) will be on preparing for transfer, rather than growing. There will, however, be cases where new standards, credentials or qualifications will be required to meet industry needs. In these cases, new provision will be supported.
What is happening with ITOs?
ITOs ceased to exist in 2022, although many Te Pūkenga work-based learning business divisions continued to use their old ITO names. Te Pūkenga work-based learning divisions will move temporarily into ISBs. This work-based learning will move into providers (including polytechnics, wānanga and PTEs) by 31 December 2027.
Industry Skills Boards
How many ISBs are there and what do they cover?
We are currently awaiting decisions on the number of ISBs and their broad coverage.
Further consultation will happen later this year when the ISB EAGs consult around detailed coverage as part of the Order in Council (OIC) process to formally establish the ISBs.
Why are you putting standard setting and delivery/arranging of training back together?
The training functions that are moving into the ISBs will only be there temporarily. By January 2028, no training will be delivered by ISBs. During the transition period, the training unit will sit within the ISB but will not be fully integrated into it.
How will you ensure ISBs manage the conflict of interest involved with being both the standard setter and a training deliverer?
During the transition period, each training unit will sit within the relevant ISB but will not be fully integrated into it, as this arrangement is only temporary.
If industries are grouped together in one ISB, will they stop having unique qualifications?
No. ISBs will be able to create and maintain standards, credentials and qualifications that are specific to the sectors they cover – in the same way Workforce Development Councils (WDCs) do.
I am worried that ISBs will only look after work-based learning.
ISBs will create and maintain standards, credentials and qualifications for all the sectors they cover at the vocational level. This will include products that support provider-based (including polytechnic) delivery, and extramural programmes as well as work-based learning.
How will industry continue to have a voice in the system when there is only provider-based learning for their sector?
An ISB will take on vocational standard setting for its entire sector, not just for the work-based learning elements. This means it will be responsible for all standards, credentials and qualifications for that sector.
The term “industry” is very broad. When you say industry will inform choices who do you mean?
ISBs have a role in communicating industry voice, and their governance will be industry led. ISBs will work with established industry groups and associations as well as employers and other sector stakeholders. ISBs will be expected to put in place mechanisms that identify the needs of all industries they represent.
What expectations does TEC have regarding collaboration between the ISB Establishment Advisory Groups?
We have an expectation for all ISBs and ISB Establishment Advisory Groups that they work together cooperatively, especially where the qualifications they cover will impact multiple sectors.
What will happen to WDCs? What will be done to ensure expertise in WDCs is retained in the new system?
The standard-setting functions of WDCs will continue until the end of 2025, when they will be disestablished and ISBs will be stood up. In the upcoming months, WDCs will develop plans to transfer relevant functions to ISBs.
ISBs have a more targeted role than WDCs. It is expected that WDC staff involved in these functions will transition into ISBs.
PTEs that deliver work-based training
What happens to work-based learners and apprentices who are studying through a PTE?
There is currently a small network of PTEs that are funded by TEC to deliver work-based learning. These PTEs will be able to continue enrolling and delivering the provision they currently do.
All TEC funded providers are given a funding allocation for the year and their enrolments must stay within that allocation. There is no guarantee of funding for providers that enrol above their allocation.
Who is responsible for determining who is eligible to become a new PTE or work-based provider? What will the criteria be?
NZQA determines whether an organisation has the appropriate capability to become a registered provider (PTE). TEC determines whether the provider’s offering is suitable for government funding. Funding decisions will be informed by industry preferences about a network of provision.
How does a PTE start being TEC funded to deliver work-based learning?
Currently we will only fund new work-based learning PTEs in cases where the provider can demonstrate significant industry support. Our requirements for this will be stringent. For details, see Application to receive TEC funding.
ISBs will work with industry during 2026 and beyond to understand the network of work-based learning provision that each sector needs. This information will inform TEC funding. Until this information is received, TEC will not have a clear picture of what provision will be both sustainable and sufficient to meet industry needs.
In most cases we encourage providers to read the guidance information about what we are looking for in work-based learning and start to prepare for future opportunities.
These same criteria will be applied to existing work-based learning providers that may wish to expand their provision.
What are the new funding parameters for work-based learning? This is a critical pathway for all providers as business owners.
See the TEC website for work-based learning funding rates.
Managed apprenticeships
Do Managed Apprentices stay with their Polytech provider or move to an ISB in January 2026?
Currently, no changes are expected for Managed Apprentices already enrolled with a Polytechnic.
We are currently working through the detail of what Managed Apprenticeships will look like in the future. Like other work-based provision, we do not want to see expansion before ISBs have had the opportunity to consider the network of provision needed for their sectors.
The stand up of regional ITPs
How do we find out which polytechnics will be standalone and which will be part of a federation?
These decisions are being worked through. We will update this information when details are available.
Will regional ITPs be able to offer programmes nationally?
Institutes of Technology and Polytechnics (ITPs) are being set up to deliver regionally, to maximise the strength of local knowledge. We expect that this will be the main focus of their provision, however, we will consider other arrangements if these have the support of industry.
Secondary/tertiary provision
What is happening with standard setting and delivery for secondary to tertiary transition programmes like Gateway and Trades Academies?
We will be looking at how these programmes will be supported, and expect this information to be covered in the transition plans developed by WDCs and Te Pūkenga work-based learning divisions.
