Programme eligibility – Youth Guarantee

Programme eligibility – Youth Guarantee

Last updated 8 March 2024
Last updated 8 March 2024

This page sets out the eligibility criteria to deliver a programme funded through the Youth Guarantee (YG) Fund.

A tertiary education organisation (TEO) can only use YG funding for New Zealand Qualifications and Credentials Framework (NZQCF) qualifications and their associated programmes and courses.

Before the Tertiary Education Commission (TEC) can consider funding a programme leading to the award of a qualification, the TEO must first obtain approval and accreditation from the New Zealand Qualifications Authority (NZQA). Once NZQA approval is obtained, the TEO may seek TEC funding approval.

To find a current list of qualifications and courses approved for YG funding for your organisation, use the qualification search or course search on the Services for Tertiary Education Organisations (STEO) application.

For the full programme eligibility requirements, see the Youth Guarantee funding conditions for the relevant year.

Minimum requirements

YG Fund funding provision should:

  • lead to the award of a qualification that is either NCEA at Level 1, 2 or 3; or another National or New Zealand Certificate at Level 1, 2 or 3 on the NZQCF
  • include literacy and numeracy provision
  • comprise part of a recognised pathway (as determined by NZQA) towards one or more vocational qualifications at Level 4 and above on the NZQCF
  • be aligned to the Vocational Pathways (if it leads to a Level 1 or 2 NCEA qualification)
  • be provided by tutors who are appropriately qualified.

For more information on Vocational Pathways and the list of standards in each pathway see Youth Guarantee.

Youth Guarantee delivery must be face-to-face (for example, not delivered via distance learning or in a work-based setting) unless we authorise you in writing to use an alternative delivery method.

Submitting a programme leading to a qualification for access to YG funding

Qualification and course approval is carried out through our section of the Data and Exchange Platform (DXP) Services for Tertiary Education Organisations (STEO) application. Through this application each TEO:

  • registers and maintains programmes leading to qualifications and courses for funding
  • updates qualification, course and delivery site details, and
  • submits its Single Data Return (SDR).

For technical information on using DXP STEO to obtain approval for qualification eligibility to access funding, see the STEO User Guide.

A TEO approved to receive YG funding may request to deliver alternative or additional programmes leading to the award of a qualification to those listed in its Mix of Provision (MoP).

When submitting a new programme for access to funding, we recommend that you:

  • consider whether it meets the eligibility criteria for YG funding;
  • consider whether it aligns with:
  • check on availability of funding, particularly if:
    • funding is being sought for Level 3
    • there will be a change in the type of delivery (trades/non-trades funding), or
    • delivery is being proposed at a new delivery site; and
  • obtain the necessary programme approval and accreditation from NZQA.

Once we have received the necessary information, we will decide whether or not the programme meets the eligibility requirements for YG funding. For the full eligibility requirements, see the Youth Guarantee funding conditions for the relevant year.

If we approve the programme as eligible for funding, we will release your YG MoP, so you can revise and submit it to us for approval.

Process for approving a programme leading to a qualification for funding

Determining eligibility

To enable us to determine whether or not to approve a programme as eligible to access YG funding, we require the following information when the programme is submitted for approval through the DXP STEO application:

  • the provider code (EDUMIS number) of the TEO seeking the approval
  • the qualification code used on the New Zealand Qualifications and Credentials Framework (NZQCF)
  • the title of the qualification
  • the number of learning hours per week
  • the number of full-time teaching weeks per year
  • the equivalent full-time student (EFTS) value of the programme calculated using the following methods:
    • credits
    • learning hours
    • full-time weeks, and approval documents from the relevant quality assurance body.

When approving a programme as eligible to access YG funding, we will:

  • check that the details of the programme leading to award of the qualification are consistent with your NZQA approval documentation
  • consider whether the EFTS value of the programme is correct
  • check that the programme are eligible in accordance with the funding mechanismand/or funding conditions
  • consider whether eligible learners enrolled in the programme will be able to access the Student Allowance/Student Loan Schemes, and
  • consider whether delivery of the programme aligns with our investment priorities, what the stakeholder needs are, and the extent of existing similar provision.

We will not backdate approval for access to the Student Allowance/Student Loan Schemes. Therefore, we require this information from you at least four weeks before the start of tuition for the programme. This will ensure that each learner who is enrolled in an approved course or programme can access financial support if eligible.

Enrolling learners in a newly approved programme

You can start enrolling learners in the programme leading to the new qualification, and access funding, after the programme has been:

  • listed in your YG MoP with regions of delivery and EFTS, and
  • we have approved your MoP for funding.

A detailed description of the required information is set out below.

TEO/provider code

You must give us the four-digit code assigned by the Ministry of Education to uniquely identify your TEO. A list of the four-digit codes assigned to each TEO is set out in Appendix 1 of the SDR Manual.

Defining a qualification

You must give us the following information that defines the qualification:

  • the award category code (recognised qualifications have an award qualification category code – refer to Appendix 9 of the SDR Manual)
  • the International Standard Classification of Education (ISCED) Level, and the ISCED code of the qualification (refer to Appendix 9 of the SDR Manual)
  • the level of the qualification on the NZQCF (refer to Appendix 9 of the SDR Manual)
  • the outcome (ISCED destination) of completing the qualification (for example, whether the qualification is designed to lead the learner directly into the labour market), and
  • the New Zealand Standard Classification of Education (NZSCED) of the qualification (refer to Appendix 8 of the SDR Manual). 

Qualification code

You must supply the qualification code. The format of the qualification code is alphanumeric, usually two letters followed by four numbers. Select the New Zealand Certificate/Diploma from the Qualification List on the DXP STEO application.

If you intend to offer a New Zealand Certificate listed on the NZQCF, use the NZQCF code for the qualification for all references to the qualification.

A TEO can submit its New Zealand Qualifications Authority (NZQA) approval for one programme that leads to a New Zealand qualification in STEO. If you offer more than one programme that leads to the same New Zealand qualification, you must send the additional NZQA programme approvals to the TEC so we can agree to the delivery (do not submit the documentation through STEO). Programmes leading to New Zealand qualifications should not be submitted under a local/provider code.

Qualification codes for trades and non-trades (and NCEA)

If you have NZQA programme approval for a trade programme and a non-trade programme for the same qualification (i.e., one learner is enrolled on 50% of P1, C1, L1 courses while another is enrolled on 50% A1, J1), you need to set up two separate local qualification codes to reflect these different programmes. Only qualifications at Levels 2 and 3 can be funded at the trade rate.

Note: Where the programme will only be delivered as either trade or non-trade, you only need to set up one qualification code. 

A TEO approved by NZQA to deliver the National Certificate of Educational Achievement (NCEA) Level 2 with a Vocational Pathway needs to set this up in STEO using the qualification codes below.

Code 

Title

Level

Description

NCEAL1

National Certificate in Educational Achievement L1

L01

YG Non-Trades

NCEP1T

Construction and Infrastructure Trade L2

L02

YG Trades

NCEP1N

Construction and Infrastructure Non-trade L2

L02

YG Non-Trades

NCEP2T

Manufacturing and Technology Trade L2

L02

YG Trades

NCEP2N

Manufacturing and Technology Non-trade L2

L02

YG Non-Trades

NCEP3T

Primary Industries Trade L2

L02

YG Trades

NCEP3N

Primary Industries Non-trade L2

L02

YG Non-Trades

NCEP4T

Service Industries Trade L2

L02

YG Trades

NCEP4N

Service Industries Non-trade L2

L02

YG Non-Trades

NCEP5T

Social and Community Services Trade L2

L02

YG Trades

NCEP5N

Social and Community Services Non-trade L2

L02

YG Non-Trades

NCEP6T

Creative Industries Trade L2

L02

YG Trades

NCEP6N

Creative Industries Non-trade L2

L02

YG Non-Trades

NCEA3T

National Certificate in Educational Achievement Trade L3

L03

YG Trades

NCEA3N

National Certificate in Educational Achievement Non-trade L3

L03

YG Non-Trades

 Use the qualification code system shown below to enter the trade/non-trade codes in STEO.

  • “C” represents a National Certificate, whereas “Z” represents a New Zealand Certificate.
  • This is followed by the four-digit NZQCF code for the qualification.
  • This is followed by “T” identifying it as a trade programme (50% or more of the provision is trades), or “N” identifying it as a non-trade programme (50% or more of the provision is non-trades).

Code 

Title

Level

Description

CxxxxT

National Certificate in Xxxxx Level 3

L03

YG Trades

CxxxxN

National Certificate in Xxxxx Level 3

L03

YG Non-Trades

ZxxxxT

New Zealand Certificate in Xxxxx Level 3

L03

YG Trades

ZxxxxN

New Zealand Certificate in Xxxxx Level 3

L03

YG Non-Trades

Title of qualification

You must give us the title of the qualification(s) for which you are seeking approval for funding.

This does not mean the title of the programme that NZQA approved, unless the programme title and qualification title are the same.

Duration

You must provide us with information about the duration of the programme, specifically the learning hours and full-time teaching weeks as approved by NZQA.

Learning hours

NZQA defines “learning hours” as all planned learning activities leading towards the achievement of a qualification.

Types of learning activities include but are not limited to:

  • lecturer and tutor contact hours, including workshops and tutorials
  • tests and assignments
  • supervised practical placements
  • study time
  • self-directed learning activities that you expect the student to engage with/participate in, and
  • examination periods.

There are three fields for types of learning activities on the DXP STEO application. A TEO should break down its various learning activities, and enter hours in the STEO fields below as accurately as possible, based on the guidance below. The three fields are:

  • teaching hours each week – e.g., face-to-face classroom/online/field trip/simulation time, tutorials, on-site assignments, assessments and examinations
  • work experience hours each week – e.g., time the learner spends practising or learning skills relevant to their study programme in a workplace; this includes a teaching workplace, which may be on-site, as long as it operates as a commercial enterprise, and
  • self-directed study hours each week – “self-directed study” means only TEO-directed study carried out by the learner; e.g., time the learner spends on off-site assignments (such as homework assignments), and TEO-directed reading and study hours, that the learner must complete in their own time. Note: self-directed study does not include self-directed activities that the learner initiates.

Note: A TEO will need to use a consistently applied rationale, in terms of which activities constitute what programme learning hours in STEO for each of the three fields above.

In relation to the number of learning hours in the programme leading to the award of a qualification, you must give us the:

  • number of teaching hours each week (see above)
  • number of hours each week of work experience (see above)
  • number of self-directed learning hours each week (see above)
  • total number of learning hours each week
  • total number of learning hours in each year
  • number of years it will take to complete the programme, and
  • total number of learning hours in the programme (number of learning hours in each year multiplied by the number of years).

Total learning hours in STEO must be the same as the total programme learning hours approved by NZQA. We expect actual delivery to align with the total learning hours and the learning activities approved by NZQA. This means we expect each TEO to regularly review the delivery of its programme(s) to ensure they are “right sized” for most learners (recognising that some learners take more or fewer learning hours to achieve a qualification than others).

Note: During audits and investigations we may check whether a TEO’s delivery reflects our and NZQA’s approvals. To do this, we triangulate NZQA approval documentation, STEO data, and your information for learners, and compare the information to actual delivery.

Full-time teaching weeks

A full-time teaching week includes the types of learning hours outlined above.

In relation to the number of teaching weeks in each year of the programme, you must give us the:

  • number of full-time equivalent teaching weeks
  • number of weeks of recess in each year
  • total number of full-time teaching weeks and recess weeks in each year – FTE gross
  • number of credits on the NZQCF contained in the programme, and
  • number of credits that a learner must achieve each year to complete the programme.

We generally will not approve a programme for funding that is longer than 34 weeks in a year.

You must not enrol a learner in more than:

  • 1.5 EFTS (120 credits) of Level 1 and/or 2 YG provision in any year, or
  • 1.0 EFTS (120 credits) of Level 3 YG provision in any calendar year.

EFTS value of the programme

We require the EFTS value of each programme in order to determine whether a programme is eligible to access YG funding. For conditions on assigning EFTS values to programmes, see YG funding conditions.

The EFTS value of each programme must be specified to no more than four decimal places. The EFTS value determines the workload involved in each programme and is required so that we can appropriately fund you to deliver the programme. 

Change to equivalent full-time student (EFTS) definition from 1 January 2023

From 2023 the definition of a full-time, full-year workload (an EFTS) for a learner enrolled in a Level 1 or 2 Youth Guarantee qualification is 80 credits (not 120 credits).

The purpose of the EFTS definition change was to encourage providers to deliver Level 1 and 2 programmes that better reflect the expected workload for YG learners. Providers had found that most YG learners require additional time and support to achieve a 120-credit programme within a calendar year. This allocation will support the high costs needs and support for the learner.

The Youth Guarantee premium allocation adjusts the overall YG funding you receive so that you are fully funded for 1 EFTS for every 80 credits delivered at Level 1 and 2. This means that, after each Single Data Return (SDR) submission, we will pay 50% more YG funding for Level 1–3 course enrolments delivered toward a Level 1 or Level 2 qualification. These payments will be made on top of approved YG allocations.

Our definition of one EFTS for a learner enrolled in a Level 3 YG qualification remains 120 credits.

Providers may continue to offer programmes of up to 120 credits where that is appropriate for learners, possibly with more intense delivery models and pastoral care.

The table below sets out the change. 

Year

Qualification level
(NZQCF)

Credits per EFTS

Notional hours per EFTS

Portion of a full-time, full-year workload

2018

1–3

120

1200

100%

2019

1, 2

100

1,000

3

120

1,200

2023

1, 2

80

800

3

120

1,200

Implications of the change

TEOs need to track learner consumption of each learner’s 2.5 EFTS lifetime entitlement carefully. This is particularly relevant for learners progressing from a Level 1 or 2 YG qualification to a Level 3 YG qualification.

From 2023, track student EFTS consumption as follows:

  • For Level 1 and 2 qualifications, track course enrolments that started:
    • before 31 December 2018 using 120 credits per EFTS,
    • before 31 December 2022 using 100 credits per EFTS, and
    • after 1 January 2023 using 80 credits per EFTS.
  • For Level 3 qualifications, track course enrolments using 120 credits per EFTS.

You must not enrol a learner in more than:

  • 1.5 EFTS of Level 1 and/or 2 YG provision in any calendar year; and
  • 1.0 EFTS of Level 3 YG provision in any calendar year.

EFTS value calculation

The EFTS value must be determined using the following methods:

  • credits,
  • learning hours, and
  • full-time weeks.

Each of the three methods should produce the same result. If they do, we can be confident that a learner is undertaking a reasonable workload.

Each method is set out in more detail below.

Credits

A credit measures the average amount of learning that is required to achieve the qualification. 

The EFTS value can be calculated using the credits method by dividing the number of credits for the qualification by 120 (the standard number of credits that equate to one full-time year of study in STEO). 

Example: If a qualification has 60 credits: 60 divided by 120 = 0.5 EFTS.

Learning hours

The EFTS value can be calculated using the learning hours method by dividing the programme's total learning hours by 1,200 (the standard number of learning hours that equates to a full-time year of study).

Example: If the total learning hours for one semester in a programme is 600 hours: 600 divided by 1,200 = 0.5 EFTS.

Full-time weeks

The EFTS value can be calculated using the full-time weeks method, by dividing the length of tuition for the programme in weeks by 34 (the standard number of weeks that equate to one full-time equivalent teaching or tuition year). 

Example: If the programme has a length of 17 weeks: 17 divided by 34 = 0.5 EFTS.

EFTS value when a qualification has strands

A qualification may have a range of options or electives with variable credit combinations. These are called strands. Each strand may have a different total EFTS value.

If a qualification has two or more strands, you should determine the EFTS value for each strand. We require the EFTS value of the strand that has the highest EFTS value for our calculations.

You must calculate the EFTS factor of each course in the strand in order to calculate the EFTS value of the strand. The EFTS factor of a course can be determined in the following ways:

  • for a qualification that has up to 120 credits, divide the course credits by 120
  • for a qualification that has more than 120 credits, and we have agreed to fund more than 1 EFTS per student per year, divide the course credits by the credit value of the qualification.
  • For a qualification that has more than 120 credits, and we have not agreed to fund more than 1 EFTS per student per year, divide the course credits by 120.

Example:

Calculating the EFTS value of a qualification with strands

Strand 1

Credits 

Course EFTS factor 

Strand 2

Credits 

Course EFTS factor

Course 1

15 

0.1250 

Course 1

15 

0.1250

Course 2

15 

0.1250 

Course 2

15

 0.1250

Course 3

26 

0.2167

Course 3

 26 

0.2167

Course 4

10 

0.0833 

Course 6

10 

0.0833

Course 5

0.0500

Course 7

0.0417

 

 

 

Course 8 

0.0333

Totals 

72 

 0.6000 

 

75 

0.6250

In this example, if we approve the qualification for funding, it will be approved as 75 credits as this is the credit value of the longest strand. The EFTS value of the qualification is therefore 0.625 (75 credits/120 = 0.625 EFTS).

Example: Calculating the EFTS value of a qualification over 120 credits with strands

If an approved qualification in STEO has a value of 1.0 EFTS but more than 120 credits, the credit value of the longest strand is used to determine the course EFTS factor for each strand. This ensures that courses common to both strands have the same EFTS factor.

In this example, the credit value of 150 is used to divide the credits, not 120:

Calculating course EFTS factors in a qualification of more than 120 credits in one year with strands  

Strand 1 

Credits 

Course EFTS factor 

Strand 2

Credits 

Course EFTS factor

Course 1

30 

0.2000 

Course 1

30

0.2000

Course 2

30

0.2000

Course 2

30

0.2000

Course 3

52 

0.3467

Course 3

52 

0.3467

Course 4

20 

0.1333 

Course 6

20

0.1333

Course 5

12

0.0800

Course 7

10

0.0667

 

 

 

Course 8 

8

0.0533

Totals 

144

 0.9600 

 

150 

1.0000

Defining a qualification

You must give us the following information that defines the qualification:

  • the award category code (recognised qualifications have an award qualification category code – refer to Appendix 9 of the SDR Manual)
  • the International Standard Classification of Education (ISCED) Level, and the ISCED code of the qualification (refer to Appendix 9 of the SDR Manual)
  • the level of the qualification on the NZQCF (refer to Appendix 9 of the SDR Manual)
  • the outcome (ISCED destination) of completing the qualification (for example, whether the qualification is designed to lead the learner directly into the labour market), and
  • the New Zealand Standard Classification of Education (NZSCED) of the qualification (refer to Appendix 8 of the SDR Manual). 

Making a change to a programme leading to the qualification

To make a change to a programme leading to an award of a qualification, you must first check with NZQA if their approval is required for the change.

Once you have the required approval, you need to reflect the changes in STEO. In doing that, you must meet the requirements of any conditions on making changes to programmes.

For conditions on making changes to programmes, see the YG funding conditions.

Information about courses

NZQA approves a programme leading to a qualification, and the TEO then submits the programme to us through STEO for approval as eligible to access YG funding. We may then agree to fund the programme.

Following that, the TEO must disaggregate the programme into component courses in STEO. You must give us all of the following information about each component course in the programme:

  • provider code
  • course code
  • course title
  • qualification code
  • delivery classification
  • NZSCED field of study
  • level of the course on the NZQCF
  • number of credits of the course
  • funding category of the course
  • EFTS factor of the course, and
  • whether the course has embedded literacy and numeracy skill development in the provision.

Some of the key fields required for SDR submission are outlined in more detail below. 

Delivery classification (CLASS)

You are required to classify your courses using the current Delivery Classification Guide.

New Zealand Standard Classification of Education (NZSCED)

The NZSCED is a subject-based classification system that contributes to international reporting, and in some cases may be used to describe the Mix of Provision in your Investment Plan.

All courses must be classified using the NZSCED classifications on a “best fit” basis according to their predominant subject matter. This means that the chosen NZSCED classification reflects the largest part of a course’s subject matter.

A full list of NZSCED classifications is provided in the SDR Manual Appendices

For more information on NZSCED classifications, see New Zealand Standard Classification of Education – Education Counts.

Funding category (CATEGORY)

The funding category includes:

  • an alphabetic code that relates to the delivery classification, and
  • a numeric code that reflects the level of study.

Alphabetic code

The alphabetic code (based on delivery classification) is used to record YG funded course subjects. It is also used to determine DQ7+ funding but not Youth Guarantee funding. The alphabetic code can be found in Table 2, Appendix 1 of the Delivery at Levels 7 (degree) and above on the New Zealand Qualifications and Credentials Framework (DQ7+) Funding Mechanism.

Numeric code

For YG courses the numeric category will always be 1, as set out in the table below.

Category (numeric code)

Classification by level and content of study

1

Courses designed for non-degree qualifications with no research requirement, including certificates and diplomas

EFTS factor of courses (FACTOR)

The EFTS factor of a course equates to the course size that is a portion of the total EFTS value of the programme of which the course is part.

As a guideline, we recommend that the size of the smallest course should not have an EFTS factor of less than 0.1.

Although you may choose to deliver a smaller course, if the course is based on a single unit standard and has a course EFTS factor of less than 0.1, we do not require you to further disaggregate the course in STEO.

After a programme has been disaggregated into courses and we have approved these as eligible for access to YG funding, you will not be able to disaggregate them further.

For the purposes of STEO, MoPs and SDR reporting, EFTS factors are calculated using 120 credits per EFTS for all Youth Guarantee provision (the standard number of credits that equate to one full-time year of study).

Calculation

Qualifications are measured in credits. We require the EFTS factor of a course to be calculated by:

  • dividing the number of credits in the course by the total number of credits in the qualification, and
  • multiplying that number by the EFTS value of the qualification. 

The EFTS factor must be expressed to four decimal places.

Example: If a qualification has a total of 60 credits and an EFTS value of 0.5, the EFTS factors of the courses in the qualification are calculated as:

Courses

Credits

Qualification EFTS value

Course EFTS factor

1

24

0.5

24/60 x 0.5 = 0.2000

2

20

0.5

20/60 x 0.5 = 0.1667

3

16

0.5

16/60 x 0.5 = 0.1333

 

Credits = 60

 

EFTS value = 0.5

Embedded literacy and numeracy flag (EMB LIT NUM)

You must indicate whether the course includes embedded literacy and/or numeracy provision.

A course with embedded literacy and numeracy provision will deliver deliberate teaching of literacy and numeracy skills and will be part of a programme that has:

  • explicit literacy and numeracy statements, such as learning outcomes or teaching and learning statements within programme or course information
  • a literacy and numeracy diagnostic assessment for each learner, and
  • assessment of each student's progress in literacy and numeracy skill development.

Closing a qualification

You can remove a qualification that you no longer offer from your MoP and close it from DXP STEO.

The process can be found on the STEO application.

Tertiary education organisation (TEO) eligibility

To receive Youth Guarantee (YG) Fund funding, you must continue to be:

  • Te Pūkenga – New Zealand Institute of Skills and Technology (Te Pūkenga); or
  • a wānanga; or
  • a registered private training establishment (PTE); or
  • a State or State-integrated school that has been funded by us for YG provision since 2011.

See the YG funding conditions from the relevant year for the full TEO eligibility requirements.

Funding conditions by year