Funding and payments

Funding and payments

Last updated 30 May 2023
Last updated 30 May 2023

This page provides information about how Intensive Literacy and Numeracy (ILN) funding is set, funding allocation, funding rate, funding calculation, payment and funding recovery.


The Literacy and Numeracy 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. 

Funding is agreed through a tertiary education organisation’s (TEO’s) Investment Plan (Plan).

A TEO that receives ILN funding is required to:

Funding for ILN is set through the Government’s annual budget process. We determine the appropriate amount of ILN funding for a TEO.

Through each TEO’s Plan, we agree the mix of provision (MoP). This includes the:

  • programmes that the funding can be used for
  • allocation of funding towards each programme, and
  • volume of delivery expected from each programme.


ILN funding is paid in monthly instalments. The payment amounts are in equal instalments from January to June, and in equal instalments from July to December.

Funding allocation

Indicative allocation

The indicative allocation is our early estimate of the “On-Plan” funding that each tertiary education organisation (TEO) could receive in the following delivery year if its Investment Plan is approved for funding.

We calculate the indicative allocation using a set of allocation methodologies. These methodologies are specific to each fund. We review and revise them every year to ensure they’re aligned to funding determinations and the current tertiary environment.

Indicative allocations are made available through the My Allocations and Payments app on Ngā Kete from 1 June.

For more information, see Indicative allocations by year.

For more details regarding your specific allocation, please contact or your Relationship Manager.

Funding rate

ILN provision is funded at a fixed rate of $25.86 per hour of face-to-face literacy, numeracy, or literacy and numeracy, tuition.

For funding from 1 January 2023, the funding rate for ILN will increase by a further 2.75% to $26.89 per hour. This is in addition to the 1.2% increase that was applied for the 2022 fund rate.

Each hour of provision not attended by the learner is not to be reported and is not funded.

Note: Delivery to learners receiving less than 80, and more than 300, hours (if eligible) is also funded, not just delivery to learners receiving 80 to 300 hours. See Eligibility (Programme eligibility).

Funding wash-ups

The methodology and technical specifications for the calculation of 2022 funding wash-ups can be found in the 2022 Global Wash-up Methodology document.

2022 Global Wash-up Methodology (PDF 1.1 MB)