Funding and payments

Funding and payments

Last updated 17 February 2020
Last updated 17 February 2020

Funding for the Literacy and Numeracy - Refugee English Fund (ILN Refugee English) is set through the Government’s annual budget process.


The Specialised English for Speakers of Other Languages funding mechanism is issued by the Minister responsible for tertiary education. The funding mechanism outlines the general form and essential components of the fund. It provides the mandate for us to allocate the funding and what the funding can be used for, and details how we administer the fund.

We prioritise funding to tertiary education organisations (TEOs) located in common refugee settlement areas. West Auckland, South Auckland, Hamilton, Palmerston North, Wellington (City), Lower Hutt, Porirua, Christchurch, Nelson and Dunedin are the most common refugee resettlement areas, but other refugee resettlement areas are established from time to time. 

When we allocate funding, we consider:

  • whether the TEO is eligible for funding
  • the nature of the provision offered by the TEO, and 
  • the TEO's past performance.

Funding is then agreed through a TEO’s Investment Plan (Plan).

A TEO that receives funding from the ILN Refugee English Fund is required to:

Funding allocation

Our approach to calculating your 2020 indicative allocation for Intensive Literacy and Numeracy - Refugee English

The purpose of Intensive Literacy and Numeracy - Refugee English funding

The Intensive Literacy and Numeracy – Refugee English Fund (ILN Refugee English) supports refugees to reach a level of English that will allow them to enter employment, or undertake their choice of vocational or degree-level education.

The ILN Refugee English Fund is a component of the Specialised English for Speakers of Other Languages funds (Specialised ESOL funds).

The purpose of Specialised ESOL funds is to:

  • increase opportunities for adults to engage in literacy and numeracy learning, particularly migrants and refugees
  • raise adults’ literacy and numeracy skills to help learners progress onto further study and employment, and
  • improve the quality and relevance of provision, including the ability to identify learner needs and learning gain.

Programmes funded through the ILN Refugee English Fund must be delivered fees-free and lead to a recognised ESOL qualification at level 3 or above on the New Zealand Qualifications Framework (NZQF).

How we calculated your 2020 indicative allocation for ESOL – Refugee English

Your prior performance information was used to calculate your 2020 indicative allocation.

To determine the starting point for calculating your 2020 indicative allocation we compared your 2018 actual ESOL - Refugee English delivery with your 2019 allocation.

If your 2018 actual delivery was below 100%, we used the lesser of either your:

  • 2018 actual delivery, or
  • 2019 allocation.

If your 2018 actual delivery was 100% or above, we used your:

  • 2019 allocation.

If you delivered ESOL – Refugee English for the first time in either 2017 or 2018, we used your:

  • 2019 allocation.

Note: Plan increases in the first half of 2019 (excluding one-off increases) were added to your 2018 actual delivery to determine your 2020 indicative allocation. Any Plan reductions in 2019 were excluded to avoid double reductions

If you did not submit your actual delivery reporting for 2018:

  • You will receive a zero indicative allocation for 2020.

Note: Your 2018 actual delivery has been adjusted for any additional funding provided, funding rate increases, and significant policy changes.  Your reviewed 2019 allocation includes plan changes and excludes one off adjustments.

Once we established your starting point we included any 2020 funding rate increases.

Determining your final 2020 funding allocation

To determine your final 2020 allocation and Plan approval, we will also consider the following information in our assessment and/or engagements with you:

  • your delivery volumes reported in both the August 2018 and December 2019 Single Data Return,
  • your Education Performance Indicator data, and
  • your Literacy and Numeracy Adult Assessment Tool (LNAAT) information.

Funding recoveries

How we will calculate any recoveries for 2019 ILN ESOL Refugee English funding 

We will recover funding if you deliver less than 100% of your allocated ILN ESOL Refugee English provision funding. We will recover the difference between the value of actual delivery and 100% of allocated ILN ESOL Refugee English provision funding.

Recoveries are based on:

  • Your most recent actual delivery volume data (measured at the course level), as submitted through Workspace2 in December 2019.

Recovery of unused ILN ESOL Refugee English funding is based on the number of approved learner places not filled and the learner fees to be charged by the TEO if the places had been filled. This means that where a TEO does not deliver the number of places agreed, all ILN ESOL Refugee English funding (learner fees and pastoral care) associated with those unused places is recovered.


Funding rate

Learner fees

ILN Refugee English Fund allocations are based on the usual fees charged by the TEO for a place on the ESOL qualification. This funding covers the cost of learner fees only, as the Student Achievement Component (SAC) is the Government’s contribution towards teaching and learning.

From 1 January 2020, ILN Refugee English Fund allocations increase by 1.8% to accommodate an increase in learner fees.

Pastoral care

TEOs also receive funding of $400 per learner place for pastoral care for ILN Refugee English funded learners. From 1 January 2020, this increases to $407 per learner place.

A "learner place" is a learner enrolment in a qualification, which may cross calendar years.

This funding is to be used for supporting the educational achievement of these learners and may also be used for pastoral care for other refugee learners at the TEO. We expect the pastoral care funding to be used for support services including (but not limited to):

  • additional tutorial support by teachers and tutorial assistants, including one-to-one tutorials, in-class tutorial support and additional small group tutorial classes such as literacy and/or writing
  • the purchase and loan of supporting materials like textbooks and laptops for use by these students
  • academic co-ordination and career advice
  • child care support
  • additional pastoral care, where appropriate, as well as referral to more general support services available in the community, and/or
  • assistance with transport costs where these costs are a barrier to learning.

We expect each TEO to maintain an audit trail of their expenditure on support services to ILN Refugee English students that shows how the $400 per learner pastoral care funding is used.



If a learner does not successfully complete one or more SAC funded courses in their ILN Refugee English funded qualification programme, then the TEO may re-enrol the learner in the course(s) so the learner can complete the qualification. In these cases, the enrolment in the qualification programme is a continuing ILN Refugee English learner place, so it does not attract further ILN Refugee English funding, but the course re-enrolments do attract further SAC funding (up to the TEO's approved SAC allocation).


If a learner withdraws from a qualification programme without completing all of the SAC funded courses in the qualification programme and, at a later date, the learner re-enrols in the same qualification programme at the same TEO, this is a new learner place that does attract ILN Refugee English funding, as well as SAC funding (up to the TEO's approved ILN Refugee English and SAC allocations).


We make payments in monthly instalments, on the first banking day of each month.