Funding and payments

Funding and payments

Last updated 14 August 2017
Last updated 08/14/2017

This page provides information about how Māori and Pasifika Trades Training (MPTT) funding is set, funding allocation, funding calculation, and funding recovery. 

Funding

The MPTT funding mechanism is issued by the Minister for Tertiary Education, Skills and Employment. The funding mechanism outlines the general form and essential components of the fund. It provides the mandate for the TEC to allocate the funding, what the funding can be used for, and details how we administer the fund.

MPTT funding is off-Plan. A tertiary education organisation (TEO) that receives MPTT funding is required to:

  • comply with the requirements of the Education Act 1989, and
  • comply with the funding conditions for MPTT in 2017 for consortia and/or TEOs specified in its funding approval documentation.

MPTT funding is set through the Government’s annual budget process. It supports and enables positive outcomes to be achieved by Māori and Pasifika learners who are enrolled in Student Achievement Component (SAC) funded vocational training.

Funding allocation

MPTT funding has four components:

  • consortium activities funding - to increase access to vocational training for Māori and Pasifika learners and improve pre-employment trades training (including robust work preparation) to align this training more closely to the needs of employers and of Māori and Pasifika communities
  • fees top-ups funding - to make SAC-funded programmes of pre-trades training fees-free to MPTT learners
  • brokerage services funding - to:
    • match learner talents and aspirations with employer skill requirements and career pathways
    • tailor pre-employment trades education provision to the needs and aspirations of MPTT learners, communities and potential employers
    • facilitate relationships between MPTT learners, TEOs, industry training organisations (ITOs) and potential employers, and
    • transition learners into sustainable employment, and
  • tools grant funding - $1,000 per eligible learner to subsidise the cost of purchasing tools relevant to their training.

Consortium activities

Consortium activities funding is paid to support activities that will complement SAC funded provision for Māori and Pasifika learners, and provide the opportunity for learners to gain entry level employment in their chosen trade.

The funded activities must support learner pathways into trades training and employment.

We allocate consortium activities funding based on intended learner numbers, and the capacity and performance of the consortium. Other factors, such as the stage of development of the consortium and the potential for economies of scale are also taken into account.

Consortium activities that we may agree to fund include:

  • project management and co-ordination 
  • employability skills training and fees, for example:
    • driving licenses
    • site safe certificates 
  • wānanga and fono meetings, and
  • evaluation services.

Fees top-ups

SAC funded programmes of study or training that are eligible for MPTT fees top-up funding are those that lead to the award of a qualification at levels 1 to 4 on the New Zealand Qualifications Framework (NZQF). The fees top-ups funding makes the provision fees-free for the MPTT learner.

We allocate fees top-ups funding to SAC-funded TEOs that are a member of one or more consortia.

We allocate the funding at an agreed rate per equivalent full-time student (EFTS) of SAC funded provision delivered to an MPTT learner. One EFTS is defined as the learner workload that would normally be carried out by a learner enrolled full-time in a single academic or calendar year.

Funding rate

See Condition: Funding for MPTT Fees Top-ups.

The fees top-ups rate is $4,000 per EFTS for SAC funded provision to MPTT learners that is at levels 3 and 4.

Note: from 2017 on, all training provided at levels 1 and 2 is already fees free.

An organisation that receives MPTT funding for fees top-ups must use that funding to meet the learner’s contribution to the cost of teaching and learning services provided by the TEO.

Fees top-ups funding must not be used to meet the government’s contribution to the cost of teaching and learning services provided by the TEO. The TEO must meet those costs through its SAC funding.

Brokerage services

Brokerage services funding supports connections between employers, consortia and partner/other TEOs in order to support MPTT learner progression.

We expect these activities to supplement existing brokerage and facilitation activities carried out by a consortium. A brokerage services funded TEO may pass on its funding to another organisation to carry out the services. 

The brokerage services specified in the TEO’s funding confirmation letter must be the brokerage services provided. These services may include:

  • providing recruitment support, identifying pre-employment needs of learners, and their employment, training and career pathways 
  • supporting learners and working with employers and key industry stakeholders, and
  • providing employment transition support.

Career guidance

We expect consortium partner organisations to, collectively and individually, support each learner to recognise and develop the skills and competencies they need to manage their career in a trade.

See Consortia, and Project Kamehameha and Project Lumana'i (research commissioned by Careers New Zealand about design and delivery of career resources for Māori and Pasifika respectively).

Funding rate

See Condition: Funding for Brokerage Services.

The brokerage services rate for 2017 is $1,150 per learner.

We pay 50% ($575 per learner) up front and 50% ($575 per learner) after the learner has progressed to a successful outcome. The second 50% payment is paid to the TEO that undertook the pre-trades training and is payable only once for each learner.

For the TEO to receive the incentive payment:

  • the learner must achieve the successful outcome within 18 months of leaving the MPTT programme, and
  • the TEO must report the successful outcome through Workspace 2 using the MPTT Tools Grant and Brokerage Performance Summary template (which we provision to Workspace 2 monthly).

Tools grant

We pay $1,000 to each eligible learner to subsidise the cost of purchasing tools relevant to their training or employment.

Who is eligible for the tools grant?

To be eligible for the MPTT tools grant the apprentice/trainee must have:

  • participated in SAC funded provision approved by us for MPTT funding, and
  • not previously received any government funding for tools (for example, through the Apprentice Reboot).

The apprentice/trainee must also be one of the following:

  • A New Zealand Apprentice.
  • A trainee enrolled in an apprentice-equivalent qualification (such as a Managed Apprenticeship) at level 4 on the NZQF of at least 120 credits, where:
    • there is a signed training arrangement between the trainee, the TEO delivering the qualification and the employer, and
    • the trainee is employed in the industry for which they are training (for example, studying carpentry while employed in the building industry).
  • A trainee enrolled in a TEC-approved industry trades qualification at level 3 or 4 of the New Zealand Qualifications Framework (NZQF) of at least 40 credits where:
    • there is a signed training arrangement between the trainee, and the employer, and
    • the trainee is enrolled with an industry training organisation (ITO).

If I am a learner, how can I apply for the tools grant?

Read the MPTT Tools Grant Information for Applicants document, to see if you are eligible.

MPTT Tools Grant - Information for Applicants (PDF, 291 Kb) 

If you are eligible, complete and sign the MPTT Tools Grant application form. You also need to sign the declaration confirming that you will only use the Tools Grant to subsidise the cost of tools related to your training.

MPTT Tools Grant application form (PDF, 108 Kb)

Send your completed application form to the organisation where you undertook your MPTT pre-trades training. We will pay that organisation, which will, in turn, forward the payment to you.

Please note: We can only pay the grant if we receive your application (via the organisation where you undertook your MPTT pre-trades training) within 18 months from the date you completed or left your MPTT pre-trades training.

If you have any questions, please contact the organisation where you undertook you MPTT pre-trades training. 

If I am a TEO, how can I apply for the tools grant on behalf of a learner?

Only a TEO with a signed MPTT Tools Grant funding confirmation letter from us is able to apply for an MPTT tools grant on behalf of a learner.

MPTT Tools Grant funding confirmation letter (PDF, 494 Kb)

We will only pay the tools grant for a learner if we receive the application within 18 months from the date the learner completed or left their MPTT pre-trades training.

Refer to the Tools Grant – MPTT - Guidelines for TEOs document for information about how to apply for tools grants for learners.

Tools Grant - MPTT - Guidelines for TEOs (PDF, 510 Kb)

Payment

We pay funding for MPTT in accordance with the organisation’s funding confirmation documentation, which specifies the amount of funding payable for consortium activities and/or fees top-ups, and/or brokerage services (as applicable).

Consortium activities funding

Consortium activities funding is paid in 11 instalments, as set out under Payment Schedule in Appendix 1 of the funding confirmation letter for consortium activities funding.

MPTT funding confirmation letter for consortia (PDF, 606 Kb)

Fees top-ups and brokerage services (first 50%)

We pay MPTT fees top-ups and brokerage services in equal monthly instalments from January to June, and in equal monthly instalments from July to December (subject to PLF adjustments), except for the brokerage incentive payment (second 50%).

Brokerage incentive (second 50%) and tools grants

We pay brokerage incentive (second 50%), and tools grants each month if we have received a correct MPTT Tools Grant and Brokerage Performance Summary report.

MPTT Tools Grant and Brokerage Performance Summary report (PDF, 64 Kb)

Funding recovery

We are required to recover funding where the results of an audit, reporting or statistical return show a TEO has under-delivered against expected performance targets as described in their funding confirmation letter.

See the following conditions:

Suspending or revoking funding

If a TEO has its funding approval revoked in accordance with section 159ZF of the Education Act 1989, the unspent portion of funding is repayable to the TEC.

See the following conditions: