The Labour Party has unveiled a plan to expand its Apprenticeship Boost scheme, promising longer employer subsidies, broader eligibility, and extra financial support for apprentices if it wins the next election.

Labour leader Chris Hipkins said the policy was designed to tackle youth unemployment while addressing New Zealand’s growing shortage of skilled workers.

“Too many young New Zealanders are struggling to find good jobs while our country faces growing skills shortages,” Hipkins said.

He said the Apprenticeship Boost scheme, introduced by Labour in 2020, had helped tens of thousands of apprentices enter secure and well paid careers.

“National cut that support to help fund tax breaks to tobacco companies and property speculators.

“Labour is committed to helping New Zealanders find good jobs and build the workforce of the future. That’s exactly what this policy delivers,” Hipkins said.

Labour’s tertiary education spokesperson Shanan Halbert said the party would restore the employer subsidy to two years, with businesses receiving $500 a month for each eligible apprentice during that period.

He said the scheme would also be expanded to cover additional industries, including road construction, water treatment and hairdressing.

Under the proposal, eligible apprentices would be able to apply for a one off grant of up to $1,000 to help pay for tools and equipment needed to begin their training.

Labour also plans to invest $2 million in Industry Skills Boards and training providers to pilot extra mentoring and support services for apprentices.

“We know lack of support is a big reason why many apprentices don’t complete their training and this policy directly addresses that,” Halbert said.

The policy is expected to cost an average of $56.5 million a year and would be funded through future operating allowances.

If elected, Labour said expanded eligibility and the new mentoring programme would begin on 1 July 2027. The startup grant would also become available from that date, while the extension of employer subsidies from one year to two years would take effect from 1 July 2028.