Students learning at home in remote areas, stuck in hospitals or trying to solve exams behind bars are not given the same attention as their peers in traditional schools.

The NSW Department of Education and the state's Education Standards Authority are falling behind in supporting students across alternative and home schools, an auditor-general's report has found.

"The COVID-19 pandemic resulted in significant changes to education, technology and student needs," said the report released on Thursday.

"However, the department has not evaluated or revised its approach to providing alternative school settings since they were first introduced, which ranges from around 30 to 130 years ago."

There were more than 33,500 children enrolled in alternative schooling arrangements from 2019 to 2024.

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