Funding and payments

Funding and payments

Last updated 7 May 2018
Last updated 7 May 2018

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 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.

Pastoral care

TEOs also receive funding of $400 per learner place for pastoral care for ILN Refugee English funded learners. 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.

Recovery of funding

We recover funding if a TEO receives funding that is greater than it should have been, or that it was not entitled to receive.

See Condition: Repayment of ILN Refugee English Fund funding.

Recovery of unused ILN Refugee English learner fees and pastoral care 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 in its Investment Plan, all ILN Refugee English funding (learner fees and pastoral care) associated with those unused places is recovered.

Recovery of funding is based on our assessment of the TEO’s final report for the funded calendar year.

Principles for 2019 funding allocation

We will calculate your indicative allocation using prior performance data

This will include:

  • actual delivery volume (by EFTS).

Your previous performance against this measure will determine your indicative allocation.

Your eligibility to receive funding is subject to criteria outlined in the funding mechanism.

Please note, your indicative funding allocation is no guarantee of your final funding allocation.

Your final allocation will be based on your Investment Plan, performance and other strategic considerations

We will consider your performance information alongside strategic priorities as outlined in Plan Guidance, the Tertiary Education Strategy (TES), the Focus Area Briefs and Investment Briefs

Based on these considerations your allocation may stay the same or decrease. Alternatively, you may receive a nil allocation.

We will only consider an increase to funding where the tertiary education organisation (TEO) has requested it and they are high-performing. We will address requests for funding increases as part of our engagement process following the submission of draft Investment Plans or your proposal if you are Plan exempt.

We may also take into account any other measure that we determine to be appropriate when allocating funding.  

We will recover for under-delivery or for funding you weren’t entitled to receive

See Funding recoveries.