Following the national Budget Speech, government has confirmed significant funding allocations for education and training, alongside a major review of South Africa’s national skills system.
National Skills System Under Review
National Treasury announced that a full review of the national skills ecosystem will take place in the coming year to improve how skills development supports economic growth.
“The skills development levy paid by employers funds the sector education and training authorities and the National Skills Fund to provide skills development and training. Levy income is projected to be R88.2 billion over the 2026 MTEF period.
“These institutions are struggling to deliver the skills required to drive economic growth. The National Treasury has commissioned the Government Technical Advisory Centre to conduct a comprehensive review of the national skills ecosystem in the year ahead,” Treasury said.
This review is expected to assess the effectiveness of Sector Education and Training Authorities (SETAs) and the National Skills Fund in addressing South Africa’s unemployment crisis and closing critical skills gaps.
R155.8 Billion for Post-School Education and Training
Post-school education and training (PSET), which includes universities and TVET colleges, has been allocated R155.8 billion for the 2026/27 financial year.
According to the budget review, student financial aid remains a priority.
“The National Student Financial Aid Scheme will spend R54.3 billion in 2026/27 to provide bursaries to enable 744 203 poor and academically deserving students to access universities and technical and vocational education and training colleges,” the budget review said.
This funding will support hundreds of thousands of students through bursaries, improving access to higher education and technical training opportunities.
R358.6 Billion Allocated to Basic Education
Basic education has been allocated R358.6 billion over the same period, reinforcing government’s commitment to improving schooling outcomes.
The National School Nutrition Programme (NSNP) continues to play a vital role in learner support.
“The National School Nutrition Programme provides meals to over 9.9 million learners in 19 800 schools. Allocations to the programme grow by 4.5 per cent to R33.9 billion over the medium term and have not been adjusted for the lower inflation outlook given that food price inflation is higher than the overall inflation rate.
“Expenditure on early childhood development increases from R12.2 billion in 2025/26 to R18 billion over the medium term. This will enable early childhood development services to be expanded to an additional 300 000 children,” Treasury noted.
The increased funding for Early Childhood Development (ECD) is expected to expand access to quality early learning programmes, giving more children a stronger foundation before entering formal schooling.
With billions allocated across basic education, higher education, skills development and student funding, Budget 2026 places education and training at the centre of South Africa’s long-term economic growth strategy.
Additional reporting from SANews.gov.za
