A new report from the Education Review Office (ERO) has called for significant changes to NCEA Level 1, citing concerns over fairness, consistency, and its effectiveness in preparing students for further education or employment.

The review, commissioned in April by Education Minister Stanford, examined the current state of NCEA Level 1 amid a growing trend of schools opting out.

Next year, fewer than three-quarters of schools plan to offer the qualification, with high-achieving schools leading the move away from it.

ERO’s findings revealed widespread concerns among educators.

Three in five teachers and nearly half of school leaders believe NCEA Level 1 is not a reliable measure of knowledge and skills.

Additionally, differences in subject difficulty and assessment standards mean students face varying workloads and chances of success.

Three-quarters of school leaders reported that credit values often fail to reflect the actual effort required.

Assessment inconsistency was another key issue.

Last year, students were nearly twice as likely to achieve excellence in internal assessments compared to external ones.

This variability, combined with gaps in course content, leaves many students unprepared for NCEA Level 2.

According to the report, fewer than one in three schools offer all four required parts of a course, while nearly three-quarters of school leaders said NCEA Level 1 does not provide a strong foundation for further study.

The report also identified motivational challenges.

Almost two-thirds of teachers said NCEA Level 1 does not inspire students to achieve their full potential or stay engaged until the end of the year.

For students entering the workforce directly after NCEA Level 1, the qualification appears undervalued by employers.

Seven in 10 employers consider it an unreliable measure of knowledge and skills, and nine in 10 believe it fails to reflect work ethic.

Parents, too, face challenges with NCEA Level 1.

Nearly half of parents reported struggling to understand its requirements, making it difficult to guide their children in making informed educational choices.

ERO has outlined several reform options for consideration.

These include removing NCEA Level 1 entirely, redefining it as a foundational qualification, or enhancing its rigour to better prepare students for NCEA Levels 2 and 3.

If retained, reforms would aim to standardise workload and content across subjects, ensuring all students gain the knowledge they need for further study.

In addition to long-term structural changes, ERO has proposed immediate improvements, such as better resources for parents and schools, to address some of the challenges by next year.