Funding and payments

Funding and payments

Last updated 20 May 2021
Last updated 20 May 2021

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

2021 Intensive Literacy and Numeracy indicative allocations

Purpose of Intensive Literacy and Numeracy funding

The purpose of the Intensive Literacy and Numeracy Fund is to support the intensive provision of high quality, fees-free literacy and numeracy learning opportunities for learners with low-level literacy and numeracy skills.

We fund intensive literacy and numeracy provision to:

  • raise adults’ literacy and numeracy skills
  • increase opportunities for adults to engage in literacy and numeracy learning, particularly for those in low-skilled employment, and
  • Improve the quality and relevance of provision, including the ability to identify learner need and learning gain.

How we calculated your 2021 indicative allocation for Intensive Literacy and Numeracy

The information below provides a summary of how your indicative allocation was calculated. For more details regarding your specific allocation, please contact or your Relationship Manager.

Your prior performance information informed the calculation of your 2021 indicative allocation.

Starting point

To determine the starting point for calculating your 2021 indicative allocation, we compared your 2019 actual Intensive Literacy and Numeracy delivery with your 2020 allocation.

Your 2019 actual delivery is adjusted for any additional funding provided (including flexible funding), funding rate increases, and significant policy changes. Your reviewed 2020 allocation includes Plan changes and excludes one-off adjustments. We make these adjustments to ensure we are accurately comparing your 2019 actual delivery with your 2020 allocation, in dollar terms.

If your 2019 actual delivery was below 100%, we used the lesser of either your:

  • 2019 actual delivery, or
  • 2020 allocation

If your 2019 actual delivery was 100% or above, we used your:

  • 2020 allocation

If you delivered Intensive Literacy and Numeracy for the first time in either 2019 or 2020, we used your:

  • 2020 allocation

Determining your final 2021 funding allocation

To determine your final 2021 allocation and Plan approval, we will consider the following information in our assessment and/or engagements with you:

  • Your actual delivery of hours submitted through the Actual Reporting December 2019 on Workspace2; and
  • Your year to date 2020 delivery and any further rate increases.

Funding rates for all Intensive Literacy and numeracy provision for 2021

The funding rates per Learner Hour are:

Category Funding rate
Learner-Hour $25.86

Key changes to our approach for 2021

In previous years, the starting point was calculated using actual delivery and was not adjusted based on whether delivery was below or at 100%. Further plan increases or in-year adjustments were not accounted for.

We will now take into account if delivery volume was at or below 100% and will include in-year Plan adjustments where necessary.

Allocation for NZIST subsidiary

Allocations for each NZIST subsidiary will be based on the 2020 data for it or for the ITP it replaces.

An indicative funding allocation may be made to a TEO that later transfers delivery to a transitional or other TEO. In that case, we will engage with the new TEO to transfer and adjust the allocation.

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.

From 1 January 2022, the fixed rate increases by 1.2% to $26.17 per learner hour.

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

2020 Intensive Literacy and Numeracy Recovery Methodology

We will write off and not be recovering any under-delivery of 2020 Intensive Literacy and Numeracy (ILN) funding approved prior to 1 April 2020 from Tertiary Education Organisations (TEOs).


Additional Funding approved since 1 April 2020 will be recovered if there is under-delivery.

Recoveries and write offs are based on:

  • a TEO’s most recent 2020 actual delivery data (delivery hours), as submitted through Workspace 2; and
  • actual delivery at a rate of $25.45 per hour.

How we will calculate any Recovery of Additional Funding

We will recover under-delivered Additional Funding approved since 1 April 2020, at the fund level.

  • We will calculate the difference between the dollar value of delivery and 2020 funding.
  • The Recovery will not exceed the value of Additional Funding approved.

How we will calculate any Recovery, for write off purposes

  • We will write off the dollar value of any Recovery that exceeds the value of Additional Funding approved since 1 April 2020