The Government says it will introduce law changes to prevent sole parents who take up fulltime study from being financially disadvantaged, Radio New Zealand reports.
It says it will invest up to $24 million over four years to implement changes aligning the student support system for sole parents with the benefit system.
At present, sole parents who study full-time get up to $165 a week less than other beneficiaries.
Social Development Minister Paula Bennett said on Tuesday the changes should encourage thousands more sole parents into fulltime study.
Kay Brereton from the Beneficiary Advocacy Federation says in 2008, the Government cut the Training Incentive Allowance, which hit sole parents hard.