The Ministry was established as a result of the Picot task force set up by the Labour government in July 1987 to review the New Zealand education system.

The members were Brian Picot, a businessman, Peter Ramsay, an associate professor of education at the University of Waikato, Margaret Rosemergy, a senior lecturer at the Wellington College of Education, Whetumarama Wereta, a social researcher at the Department of Maori Affairs and Colin Wise, another businessman.

This resulted in further modifications to the structure of education reform, and according to one academic, created "a system which is a far cry from the Picot intentions...

The Ministry stated these changes were made to enhance a more holistic and student-centred learning style and approach towards a better future for children.

[11] Although the Ministry's primary purpose is to in ensuring equitable and excellent outcomes, it is also the mechanism through which the Government of the day implements its education policy.

Sometimes the Ministry ends up in the difficult position of trying to implement politically induced changes in education policy to which teachers, parents, and school boards may be opposed.

[12] In order for the Ministry and the wider education sector to perform its role effectively, it is dependent on taxpayer funding provided by Government.

When government increases funding or requires financial cutbacks, this also impacts on the ability of the Ministry to fulfil its role.