UFS FAQs

UFS FAQs

Last updated 5 August 2022
Last updated 5 August 2022

We have compiled a set of frequently asked questions (FAQs) we are receiving from the sector. We will aim to keep them updated.

General UFS FAQs

What are the new funding rates?

Under the new unified funding system, the Government has released new funding rates for providers seeking funding for levels 3-7 (non-degree) and all funding (at all levels) previously delivered by the Industry Training Fund.

The new funding system is an essential element of the Reform of Vocational Education (RoVE) that will deliver the skills that learners, employers and communities need to thrive.  

For more information about the rates, please see UFS 2023 funding rates section of our website.

How do the new funding rates apply to TEOs who aren’t currently funded through SAC3+?

The funding rates announced for 2023 will only apply to the UFS for vocational education and training (VET).

The delivery component comprises the bulk of the new funding system. It will replace SAC3+ funding for levels 3-7 (non-degree) and all funding (at all levels) previously delivered by the Industry Training Fund.

TEOs that are not funded through the delivery component in 2023 will see no changes.

Does the UFS affect TEOs that only deliver provision at foundation level?

TEOs that are funded to deliver provision at foundation level, e.g. SAC1&2 / Youth Guarantee / Adult Community Education / Intensive Literacy and Numeracy Fund, or who do not currently deliver VET provision, will see no changes.  The UFS only applies to VET provision formerly allocated through SAC3+ (Levels 3-7 non-degree) and the Industry Training Fund (at all levels). 

What is an EFTL?

EFTL stands for ‘equivalent full-time learner’ and is equal to 1 STM or 1 EFTS.

The equivalent full-time measure relates to a year, or 12-month period. The credit value relates to the standard of one-year full-time study generally being 120 credits.

Where does Youth Guarantee fit under the UFS?

Youth Guarantee is not part of the UFS.

What happens if a TEO is in the process of negotiating with their Transitional Industry Training Organisation (TITO) to take over the arranging training function but can't bid for 2023 funding as it will have been allocated to the TITO?

All approved transfers for TITO provision are being taken into account in the 2023 indicative funding allocations.  The allocations are based on the best information available relating to these transfers. Further refinement is expected to take several months as the transitions occur and bed-in.

Will PTEs have to re submit an Investment Plan if they are mid-cycle?

Only plan-required TEOs will be required to submit an Investment Plan. Further detailed guidance on Plan requirements is provided in Plan Guidance

How have the indicative funding allocations been calculated?

You can find information here on the 2023 Global Indicative Allocation  methodologies.

Modes of delivery FAQs

How are mixed mode funding rates calculated?

Indicative allocations for TEOs were published from 1 June.

Shortly after, each TEO received data that showed a breakdown of the 2021 reported actuals over mode of delivery and funding rate.

The modes breakdowns come directly from TEO data (e.g. provider-based and provider-based: extramural), or from analysis that TEOs have been involved in with the UFS project team over the past two years.

Can a provider that is Provider-based add the Work-based mode to its MOP without losing its Provider-based allocation?

Requirements for MoP submission remain the same as previous years – the sum of the commitments must be within $8,000 of the funding allocation.

For 2023, work-based training can only be submitted via the ITR MoP.

As per our Plan Guidance document, the 2023 work-based provision will be primarily to providers named in TITO transition plans (or who are already delivering work-based training).

How will TEC register modes against new programmes?

It is not necessary to register modes of delivery. The data reporting will enable us to assign modes.

Who decides what Mode of Delivery a programme fits into?

For the purposes of 2023 indicative funding allocations - the TEC will determine this based on the data which providers reported in 2021. For example, if a TEO reported 2021 course enrolments as extramural in the SDR, TEC will assume that the programme will fit under the Provider-Based – extramural mode.  If the TEO used the ITR to report learners in 2021, TEC will assume the programme fits under the Work-Based mode.

How do unpaid volunteers, interns, and those undertaking temporary work experience/clinical placements or similar, fit in the modes?

Where there is no employment relationship nor expectation that the programme of study will result in formal employment due to the direct involvement of the provider (regardless of whether the learner is paid or unpaid), learners will be funded under the relevant provider-based mode. 

To meet the definition of work-based learning, the learners must be in paid employment or a volunteer in the nature of employment. To meet the relevant conditions, we expect the volunteer to have a sustained relationship beyond the learning or training period with set hours and a written agreement recording this working relationship. 

Will fee regulation settings for example, the annual maximum fee movement (AMFM) – apply to fees for work-based learning previously funded through the Industry Training Fund?

Further work is underway to clarify how fee regulation settings will apply across the modes of the UFS, including to learning previously funded by the Industry Training Fund. Any changes to fee regulation settings for 2023 (including the AMFM rate) will be subject to consultation via Gazette notice in mid-2022.

There are likely to be more significant changes to fee regulation settings from 2024 following the completion of a review of fee regulation settings and employer contributions for vocational education and training.

How will the TEC know which rate to pay for a learner when that learner is undertaking study under more than one mode in a year?

To illustrate how we expect rates to be applied, the example below is where a learner first starts their learning journey under the Provider-Based mode, is then assisted by the TEO to find employment related to their provider-based studies, and then moves to learning under the Work-Based mode (with the same TEO). During the period under the Work-Based” mode, the learner undertakes a 2-week block course.

Initially the learner will be reported as Provider-based under SDR source of funding (SOF) 37 - Delivery Component. This will indicate that Provider-based (or Provider-based: Extramural) mode is applicable.

The TEO will support the learner to enter suitable, meaningful, and sustainable employment that provides for work‑based learning opportunities.

The learner’s enrolment in the SDR ceases, and the learner is “enrolled” in the ITR.

The TEO will also need to submit the Workspace2 Work-based: pathway to work data template; TEC will use this to check and confirm the relevant data points to establish whether the pathway to work mode applies, and for up to 3-months or 30 credits, whichever comes first, will apply the Work-based: pathway to work mode rate.

At the end of the initial 3-month period, the enrolment data in the ITR will be recognised as the normal Work-based mode.

If the learner undertakes a two-week block course (Provider-based mode) during this time that relates to their work-based learning:

  • The TEO must report the block course through the SDR under SOF11 and submit the Workspace2 Work-based: Mixed-mode data template.
  • During the block course, the learner also remains “Active” in the ITR;
  • The TEC will use the data reported in the SDR (SOF11), and the ITR and the Workspace2 Work-based: Mixed-mode data template to match the data and calculate the volumes that are applicable to both the:
    • Work-based mode, and
    • Provider-based mode.

Where do micro-credentials fit in the modes of delivery?

Micro-credentials which meet the requirements for TEC funding can be funded in all the modes of delivery under the UFS, except for the Work-based: pathway to work mode.

 

Provider-based: extramural FAQs

What is meant by extramural learning?

The learner is enrolled with a provider with the learning occurring away from a provider site but not in the workplace.

The delivery primarily involves the use of postal services/hard copy workbooks, or an online learning platform with limited face-to-face contact (either online or in-person) between the provider and learner. Where online learning platforms are used, they can also involve group lectures, tutorials, etc.

This mode is not intended to cover any current or future delivery which needs to move online for a period due to COVID‑19 related restrictions on campus‑based activity. If provider-based provision needs to move online for this reason, the provider-based rate will still apply.

 

Work-based: pathway to work FAQs 

If a PTE delivers a course under provider based, but then offers work experience, will that also be classed as the work based: pathway to work mode?

Work experience is not considered to come under the Pathway to work mode. This mode is about transitioning from provider-based learning to work-based learning, and this funding is allocated to fund the additional support needed during this transition period for the learner.

Further information on what this mode of delivery looks like is here: Modes of delivery | Tertiary Education Commission (tec.govt.nz)

When can a learner move from Provider-based to Work-based: pathway to work?

The Work-based: pathway to work mode applies when a learner has been awarded some credits in either the Provider-based or the Provider-based extramural modes in a relevant programme of study (e.g, same field of study or industry).

The learner is only able to transition from provider-based or provider-based: extramural mode, to work-based: pathway to work mode, to continue their learning towards a NZQA approved qualification, when:

  • the employment opportunity is relevant to their continuing programme of study, and
  • the training covers up to 30 credits or a period of 3 months (whichever comes first).

Micro-credentials and training schemes are not eligible for funding under this mode.

What is meant by ‘similar’ in the description of Work-based: pathway to work mode of not having "received work-based learning for at least six months in this or ‘similar’ qualifications"? 

The overall intent is that the Work-based: pathway to work mode will support learners to transition from provider-based into work-based learning in a related area. This shows that the transition is intentional and has been supported.

To be eligible for the Work-based: pathway to work funding the learner must not have been enrolled in TEC funded work-based learning for at least six months prior to them studying the same (or a similar) qualification.

When we consider whether the learner may have previously been enrolled in similar and related qualifications, the TEC will consider the course funding category, the New Zealand Standard Classification of Education (NZSCED) code, and any overlap in learning outcomes between the programmes, allowing for the fact that there may be variations on a case-by-case basis.

The learner can have an existing job elsewhere, as long as it does not involve funded work-based learning, as the pathway to work mode is about finding the learner a job in their field of study that will allow them to continue their study.

If a provider delivers work-based and provider-based elements, would they be funded under both modes?

Yes, though not at the same time. Further information will be provided about how the data collection systems (the Single Data Return (SDR), Industry Training Register (ITR) and Workspace2) will enable the TEC to apply the relevant funding rate depending on the mode of delivery.

What is the difference between a training plan, a training agreement, and an individual learning plan?

Training agreements are part of the employment agreement between the employee and employer concerned as per the Education and Training Act 2020 (section 362). They are an agreement between the individual/learner and employer.

The learner, employer and the provider enter into a training agreement. This training agreement forms part of the learner’s employment agreement.

Once finalised, the training agreement can be used to develop a Learning or Training Plan. The Training Plan is generally agreed between the learner, provider and employer, detailing the support provided to assist the learner to achieve their learning goals/requirements, and how progress will be measured by the provider.

TEC expects that training plans are created for all learners as part of accepted good practice, even when they are studying entirely in the Provider-based mode.

What if a learner requires more than 3 months support to pathway to work? What is the rationale for 3 months?

All learners should be supported throughout their learning.  The aim of the Work-based: pathway to work mode is to provide an extra level of support for learners to successfully transition from provider-based to work-based learning in suitable, meaningful and sustainable employment. The provider plays an active role in getting the learner a job and signing up both them and the employer to a training agreement.

The training which continues beyond the initial three months will be funded under the relevant mode and, in the majority of circumstances, we expect the subsequent training to be delivered as work-based learning (funded under the work-based mode).  Providers continue to receive any learner component funding they are eligible for when a learner moves to work-based learning. This funding enables providers to provide on-going support to work-based learners.

Can any learner who is in a provider-based course (who finds employment before the completion of their course or programme) be eligible to move to the Work-based: pathway to work mode?

In the Work-based: pathway to work mode the provider is funded to actively assist the learner to find suitable, meaningful and sustainable employment and then support the learner to establish their learning in the workplace.  It will also involve signing the formal required agreements between the three parties (learner, provider and employer).

If the provider is not active with respect to the learner gaining employment and supporting the learner to transition to work-based learning, then this learner would not be eligible for the pathway to work funding rate, but instead would be in the Work-based mode.

How does the Work-based: pathway to work period of up to 3 months or 30 achieved credits (whichever comes first) ensure the provider can support all types of learners to establish their learning?

All learners should be supported throughout their learning, including those who have unique or additional needs.  The aim of the Work-based: pathway to work mode is to provide an extra level of support to ensure learners are maintaining their learning and becoming work- ready while the provider plays an active role in getting them a job and signing them and the employer up to the required formal agreements.

The Work-based: pathway to work mode is about transitioning the learner from provider-based learning to learning in the workplace, hence, the 3 months or 30 credits is expected to be sufficient to cover the transition period.  The training that continues beyond the initial three months or 30 credits will be funded under the relevant mode and, in the majority of circumstances, we’d expect the subsequent training to be delivered and funded as work-based learning.

If the student takes 1-2 years to get the 30 Achieved Credits is that still allowed?

Whilst there is no specific requirement on a learner to complete their study within a certain timeframe, we expect providers to ensure learners enrol in suitable programmes and are supported to complete their study within a reasonable amount of time.  The Work-based: pathway to work mode is about transitioning the learner from provider-based training to learning in the workplace while they are employed.

This is why the funding rate under the Work-based: pathway to work mode is only available for the first 3 months or completion of 30 credits within a workplace to acknowledge the active role expected of the provider in finding the learner employment that will enable them to continue their learning and supporting the learner in their transition to learning on the job.

What does ‘sustainable employment’ look like as described in the Work-based: pathway to work mode?

The Work-based: pathway to work mode aims to support learners to gain suitable, meaningful and sustainable employment relevant to their programme of study.

The specifics of what this looks like can be defined between the employer, the provider, and the learner. Meaningful and sustainable employment could mean that the employment is aligned with career aspirations, lifestyle, provides for on-going employment, etc.

TEC will require evidence of employment for the Work-based: pathway to work mode.

When will the payments for the Work-based: pathway to work mode commence?

Payments will be calculated and made at the end of the year when all the relevant data and supporting information is available.

In future, funding could include up-front allocations.

 

Work-based FAQs

Will work-based learners need to be domestic enrolments  (as previous industry training accepted work visa and learners just needed to be employed)?

Eligibility is changing to domestic learners only. However, existing enrolments will be grandparented to the end of their programme (monitoring and reporting required). A narrow applications-based exemptions scheme is being developed for domestic tuition subsidies for migrant workers who are not residents or citizens where the training is deemed to be in the national interest. 

Exemptions scheme for non-domestic learners in work-based learning

Is there a minimum number of hours of employment to be in the Work-based mode?

Any prerequisites a learner must meet before they are eligible to undertake work-based learning is to be agreed between the relevant parties. In regard to hours of employment, this should be agreed between the employer and the learner and outlined in their written employment agreement.

Where will group training schemes approved for funding in 2023 fit under the UFS?

For the purpose of the Modes of Delivery, Group Training Schemes will be recognised under the Work-based mode. This recognises the unique learner pathway which they facilitate.

Will Training Agreements be required for those who are enrolled in work-based training?

Three formal agreements are required for both Work-based: pathway to work and Work-based modes to outline each party’s roles and responsibilities. The formal agreements that are required by this mode include:  

  • an agreement between the provider and employer outlining the arrangement to support learners in a work-based learning environment
  • an enrolment agreement between the learner and provider
  • a training agreement, which forms part of the formal employment agreement or relevant equivalent, between the employer and employee/learner.

The required agreements must cover all relevant learner and programme information and clarify provider and employer responsibility.

More information on the agreements can be found in our general guidance on the Modes of Delivery.

Will student loans be available to learners in Work-based mode?

No. Student Loans are not available to learners in Work-based, Work-based: pathway to work, or  Assessment and Verification modes.

What is meant by supported ‘self-directed’ learning?

Supported ‘self-directed learning’ can look like but is not restricted to:

  • Learner engages with lessons in their own time
  • Learning is not instructor led and isn’t delivered in real time
  • This can include engaging with pre-recorded lectures or online tutorials or completing assignments

What are New Zealand apprenticeships?

Information on New Zealand Apprenticeships can be found here.

Where do apprenticeships sit under the Modes of Delivery?

For 2023, apprenticeships will continue to exist and be funded as work-based learning. Further information will be available on apprenticeships for 2024.

How long can the gap between enrolment in courses be?

TEC considers a gap between enrolments of 90 days or more between a course end date and a new course start date to be a new enrolment.

Why are PTEs not able to apply for Work-based funding until 2024?

The PTEs involved in 2023 work-based provision will be those named in TITO transition plans (or who are already delivering work-based training through the Managed Apprenticeships scheme).

TEC is undertaking a robust process in conjunction with all TITOs and their stakeholders to agree which PTEs are best placed to be in the initial group taking on a TITO’s Arranging Training function, and thus to be funded through the UFS Work-Based mode from 2023.  These PTEs have already demonstrated their readiness to successfully deliver high quality provision and outcomes in vocational education, with greater support provided for learners.

What happens to PTEs not able to apply for Work-based funding until 2024?

For PTEs not in this initial group described above, we do understand that some have already looked at potential business opportunities that work-based delivery might provide.

However, a key goal of the reforms is to put learners, Industry and WDC and RSLG needs more firmly in the centre, and for providers (including PTEs) to develop and deliver new programmes in response to their needs.  Building the organisational capability to do this really well (including the implementation of completely new reporting systems) takes time and effort and should not be underestimated.

During 2023, we will expect providers to focus on building their capability and relationships so that the outcome of this work is clearly evident when seeking work-based funding for the first time in 2023 for 2024.

The delivery component FAQs

How is aviation funding calculated under the UFS?

Any caps for funding for aviation provision will be confirmed once the funding mechanism has been agreed to by the Minister of Education.

Why are the trades funded lower than engineering when there is considerable capital investment in trades training?

The Ministry of Education and the Tertiary Education Commission considered benchmarking data, international comparisons and other information gathered from the sector to develop advice on the relative costs of providers delivering vocational education and training (VET) by mode and subject. This includes the cost to deliver as well as fund in trades and engineering.

Where does English as a Second Language (ESOL) learning fit under the UFS?

Level 3-7 ESOL will fall into provider based F1 category.

Is the 10% of transitions funding based on EFTS/EFTL and not include any ITF funding received by a receiving TEO?

The TEC looks at overall UFS funding being received. Some providers do not receive work-based learning or other sources of funding, so we will consider all UFS funding.

All PTEs can apply for strategic component funding.

What is the impact on PTEs that deliver non-UFS funding?

There is no change to PTEs who are not included in the UFS.

Do level 7 micro-credentials fall under UFS? 

Yes, level 7 micro credentials do fall under the UFS. Micro-credentials are not eligible for funding under the Work-based: pathway to work mode of delivery.

Is TEC and NZQA working together so that the new UFS works with Programme approval rules/requirements?

Yes, we are working together and will continue to do so as we implement the new system. 

How has funding for vocational education changed under the UFS? 

The funding rates for the UFS for vocational education incorporate the $279.5 million announced for VET in Budget 2021 and the 2.75% rates increase announced at Budget 2022.

The average funding rate to support people in work-based training will increase by approximately 50 per cent in 2023 from $4,900 per fulltime equivalent learner to $7,400 when compared to 2021 rates. Funding targeted to support learners will increase more than sevenfold.

How do I know what mode my provision is?

You should determine this using the definitions provided. TEC will provide further information on mode operational definitions following sector consultation when funding rates for the delivery component are confirmed in April 2022.

I’m a learner. How do I know what mode I am learning in and what should I expect from it?

In future, the new modes mean that you should have more options available to you about where you study. For those based at a provider, your provider should be able to support you to continue your training in a work-based setting, if this is right for you. You should see no change to the qualification you are enrolled in or the support you receive. The information you received on enrolment should tell you what to expect from your programme of study. There may be additional support available to you over time. Your provider will let you know about these changes.

I’m an employer. Does this mean the training that my employees receive will change?

We expect the new modes of delivery will deliver many positive changes to the way providers support employers and learners. You should continue to work with the provider of your training to agree the best learning opportunities for you and your staff.

Why do you want to fund mode and subject?

We want to reflect more closely the cost of delivery. Stakeholders have told us that costs vary depending on the subject and by how and where learning is delivered. Funding by modes and subject allows learners, employers and providers to make choices that are best for them. Providers will receive funding that more closely matches the cost of the delivery.

I’m an employer. Do I need to do anything differently?

No. You should work with the provider of your training to agree the best learning opportunities for you and your staff.

The learner component FAQs

What are performance element incentive payments? When will they be implemented?

The learner component has an incentive payment element which will be paid to each TEO on achieving the performance expectations set by TEC. This will be part of TEOs’ annual investment plan process within TEOs’ learner success plan, where appropriate.

TEC is taking a phased approach to implementing these incentive payments. In 2023, this payment will be required of a small number of TEOs (but those with significant levels of learner component funding), then rolling out to cover all TEOs in 2024.  

For more information, please see the Learner Component section of our website.

How do TEOs apply for learner component funding?

TEOs will not need to apply for learner component funding. It will be allocated as part of TEOs’ overall funding for VET.

Can PTEs apply for more transitions funding?  How do they do this?

No. TEC will allocate transition funding to eligible TEOs based on the published criteria and allocation methodology.

There are no additional reporting requirements.

What is the definition of ‘low prior achievement’ (LPA)?

In 2022, this is a learner under the age of 25 as at the date of enrolment who has not previously achieved a qualification on the NZQF at level 3 or above.

From 2023, it will apply to all learners as at the date of enrolment who has not previously achieved a qualification on the NZQF at level 3 or above, not just those under 25.

How are learners with LPA identified by the TEC?

SDR, ITR and NZQA data are used to determine LPA.  If prior education records are not available for a learner, they are deemed to be LPA.

Does the LPA include equivalent qualifications achieved overseas?

Where overseas qualifications are recorded in the data, they are taken into account in the LPA analysis.

Will a student out of high school into tertiary education be considered someone with LPA?

Students that have not achieved NCEA level 3 are considered having LPA.

Will a PTE lose their learner component funding if an LPA learner achieves at level 3 and transitions to a level 4 course, unless the student qualifies under a different component?

The learner attributes are proxies for distributing funding. The learner component is not intended to be targeted at specific learners with these characteristics – the funding is a contribution for the support of all learners.  It is expected that each TEO will determine the actual support each learner requires, whether or not the learner has any of the characteristics used for the funding proxy.

Can learner component funding be recovered through the wash-up process?

No, there are no recoveries of the learner component.

Can a TEO update a disability flag retrospectively for funding purposes?

No. We ask whether learners have a disability at the point of their enrolment. If their disability status has changed since their enrolment, they can indicate they are disabled in subsequent enrolments.

How were the four learner groups that are linked to the learner component chosen?

We undertook extensive analysis of data on the performance of the Vocational Education and Training (VET)  system to understand more about those learners who, on average, have been not well served by the education system in the past. This analysis showed that there were four groups of learners most at risk of not completing VET qualifications and/or face a range of disadvantages in the VET system: learners with low prior achievement, disabled learners, Māori learners and Pacific learners.

Why are only four learner groups linked to funding?

Accurately identifying each individual learner's needs is challenging. We needed a way to approximate the level of need among each TEO's learner population. We did this by using relatively large learner groups that are more likely to face disadvantages in the VET system. Our analysis shows that these four groups of learners are good proxies of need among each TEO's learner population, that is, they approximate the level of need in a straightforward way.

What about learners who don’t fall into the four groups linked to funding? How will they get support?

TEOs should use learner component funding for all learners who need additional support, not just for learners in the four identified groups. The four groups serve as a proxy for learners who need additional support to be successful in VET. Providers are expected to identify the unique needs of all their learners (including through engagement with learners and their communities), decide how best to support them, and allocate funding accordingly. All learners should therefore receive the support they need to be successful in VET.

Why is there a difference in rates for Māori and Pacific learners compared to learners with low prior achievement and disabled learners?

Data is mixed on how the system performs for Māori and Pacific learners. For example, while Māori learners are more likely than New Zealand European learners to participate in VET, they experience poorer employment outcomes from their study. This means that tying funding to a participation measure alone is unlikely to have the results we want to see. We have therefore developed a performance incentive payment that can more directly incentivise the outcomes we want. Māori will be involved in developing the indicators for this.

Importantly, for Māori and Pacific learners who also have low prior achievement and/or are disabled, providers will receive both funding rates. Māori and Pacific learners who have low prior achievement and/or are disabled will attract the highest level of funding. It recognises that these learners have compounding levels of disadvantage.

Will the incentive payments be the same as the previous performance-linked funding?

No. We are still developing the details of how they will work but they are not intended to be the same as performance-linked funding. Further information will be available in 2022.

How will performance expectations for each TEO be set?

We are still developing the details of how these will be set along with related incentive payments. We will work with stakeholders to finalise the details of the performance part of the learner component. Further information will be available in 2022.

What happens to existing equity funding for VET?

The learner component replaces equity funding for VET. From 2023, equity funding will not apply to VET but will continue for non-UFS provision.

Why doesn’t the learner component apply to the assessment and verification mode?

The assessment and verification mode will support learners who are employed and receive support for their learning and wellbeing directly from their employer. Providers will have a limited role focused on quality assurance of the assessment that underpins learners’ qualifications. This means providers will have little direct contact with learners and limited scope to engage with and support learners.

How will the funding be calculated with learners with more than one eligible characteristic?

We will calculate funding by allocating:

  • the relevant rate where a learner is identified in the data as disabled and/or having low prior achievement
  • the relevant rate where a learner is identified in the data as Māori and/or Pacific
  • both relevant rates where a learner is identified in the data as disabled and/or having low prior achievement and as Māori and/or Pacific (both rates apply).

How are learners with low prior achievement identified?

Learners with low prior achievement are those who have not achieved a prior qualification at level 3 or above on the New Zealand Qualifications Framework (NZQF) as at the learner’s enrolment start date.

How will support for learners change?

Over time, all VET learners can expect learning and wellbeing support that is tailored to their specific needs. This will take time but we expect providers to more proactively identify learners who may need support and for providers to be more focused on meeting learners’ needs.

Who receives the funding? And who decides how it is spent?

Learner component funding will be allocated to TEOs. They will decide how to spend this funding in a way that supports all of their learners' needs.

How will this improve the way the VET system performs for Māori learners?

Māori learners can expect to have increased opportunities to enrol in and complete VET qualifications that have strong employment outcomes including apprenticeships. Providers and employers will be encouraged to work together to increase hiring, training and support for Māori learners. Labour market underutilisation rates could drop, and median salaries could rise. Māori learners will be able to consistently expect culturally affirming learning environments.

How will this improve the way the VET system performs for Pacific learners?

As for Māori, Pacific learners can expect to have increased opportunities to enrol in and complete VET qualifications that have strong employment outcomes, including apprenticeships. Providers and employers will be encouraged to work together to increase hiring, training and support for Pacific learners. Labour market underutilisation rates could drop, and median salaries could rise. Pacific learners will be able to consistently expect culturally affirming learning environments

How will this improve the way the VET system performs for disabled learners?

Providers will have increased capability and capacity to understand, identify and support disabled learners’ needs. Providers and employers will be encouraged to work together to improve hiring and training rates and support for disabled employees. Disabled learners could increasingly enrol in, and complete, VET qualifications that have strong employment outcomes, including work-based training. The very high labour market underutilisation rates for disabled people could drop.

How will this improve the way the VET system performs for learners with low prior achievement?

Learners with low prior educational achievement can expect more support to complete their qualifications. We are seeking a significant improvement in qualification completion rates for these learners compared to other learner groups.

How are disabled learners identified?

Disabled learners are learners who identify as disabled on enrolment forms and learners who access disability support from providers. TEC is working with providers and the wider sector to improve data collection on disabled learners.

The strategic component FAQs

How will Wānanga receive funding under the strategic component?

Wānanga will be eligible to receive Programme Development and Maintenance Fund (PDMF) funding via their on-Plan investment process.

Officials are also working with the Wānanga through a separate workstream on funding to recognise their unique role in, and contribution to, the VET sector. 

Why doesn’t Te Pūkenga have to apply for innovative projects? 

Te Pūkenga will still need to show it is innovative as part of receiving strategic component funding which is included in its ‘on-Plan’ submission. It will be expected to prioritise projects according to the same strategic priorities.

What happens if funding doesn’t get used up / or allocated – what happens to the leftover money?

The TEC is still in the process of designing the elements of the contestable funding process, which we intend to make as simple, easy to navigate and understandable as possible.

We will provide further information on this when we discuss the draft process with you.

What is considered ‘innovative’?

The strategic component is aligned to the outcomes of the reforms.

Strategic component funding is not volume-based and for the purpose of progressing strategic priorities TEC will be looking to see how providers respond to and address National and Regional Skills priorities, and do so in forward-looking ways, i.e. investing in new technology or looking at new ways to train.

We know there can be high up-front costs for extramural provision so funding could be applied for where you are showing you are improving things for the future.

How has transitions funding been calculated?

Transitions funding is only for PTEs that are set to receive more than a 10% drop in funding (for delivery) and are delivering provision that is either priority, or niche (or a combination of both). 

What should transition funding be used for?

This is not an application-based fund and so there will not be a set of criteria to determine how the funding should be used other than what is provided for in the on-Plan funding conditions.

What monitoring or accountability arrangements will accompany the strategic component funding?

With regards the first element of this component (responding to regional and national skills priorities), Te Pūkenga will receive funding as part of the usual investment plan process, with expectations around this agreed through its plan. We expect Te Pūkenga to use this funding to meet both its charter obligation to create a sustainable national network of vocational education and to respond to national and regional skills priorities. For PTEs, we will link funding to progress against milestones agreed upfront as part of the contract for funding. We will respond quickly where there is evidence that a proposal is not delivering against expectations, including exiting early from unsuccessful projects. Part of the monitoring framework for successful proposals would be accountability to key stakeholders such as industry and iwi-Māori.

With regards the second element of this component (supporting the costs of programme development and maintenance), we will provide more information on the programme maintenance and development fund implementation process in 2022.

How are national and regional priorities being identified?

We will set regional and national skills priorities aligned with government priorities and based on advice from the Workforce Development Councils (WDCs), Regional Skills Leadership Groups (RSLGs) and Iwi Māori. We expect initial advice to be available in March and final advice in June.

Why can different provider-types access different elements of the strategic component?

A variety of provider types, each with a unique place in the system, participate in providing vocational education and training. The strategic component is designed to work with other funding to support and grow each provider type’s role.

Why does Te Pūkenga get such a big share of the strategic funding?

Te Pūkenga has a unique charter obligation to build a sustainable national network of provision. The strategic component funding will support it to deliver this while also meeting regional and national skills priorities and developing and maintaining programmes. Te Pūkenga has flexibility over its funding so it can develop a cohesive programme of initiatives that deliver on these interrelated objectives. Te Pūkenga’s strategic component funding will be subject to TEC oversight through its usual investment and monitoring mechanisms.

Will this add compliance costs to the sector?

It will enhance innovation and responsiveness to industry and regional needs, and recognises costs that have not previously been directly funded. We will design the requirements for funding in a way that enables innovation and minimises compliance costs.

What kind of programmes will be eligible for the programme development and maintenance fund?

We will prioritise programmes that are innovative, flexible, and responsive to new elements in the system, particularly where they align with the RoVE objectives and the vision of WDCs. We will confirm more details of this element in 2022.

Tools and data FAQs

Will I need to split my strategic intent (Investment plan) if I have both work-based Industry Training Register (ITR) and provider-based Single Data Return (SDR) delivery?

No, TEOs will need to cover all on-Plan funding in their strategic intent (investment plan), as opposed to providing separate documents for each investment source.

Who is responsible for entering provider-based or extramural training (such as block course or night courses) for a learner who is doing work-based training, where that training is delivered by a different provider?

The lead provider must submit this data via the SDR.

How do I, as a lead provider, report learning I have passed onto a subcontractor?

This will not change under the UFS. The lead provider must submit this data via the SDR and/or ITR.

Do sub-contractors enter their training they provide into the SDR?

No, only the lead provider should enter the delivery into SDR/ITR.

How do I report mode of delivery for work-based training?

The ITR is the main reporting system for work-based training. We use a combination of business logic and the additional manual reporting to identify mixed-mode learners.

Only those with access to the ITR will be able to report work-based delivery.

For more information, please see the tools and data section of our website.

What funding documents are changing for UFS funding in 2023?

The only changes are to the Mixes of Provisions (MoPs).

There are no changes to the other funding documents including no changes to Educational Performance Indicator commitments (EPICs) for 2023.

What Mix of Provisions (MoPs) do I need to submit for UFS funding in 2023?

You will have to submit a different Delivery Component MoP depending on the type of TEO you are and the mode(s) of delivery you use.

What should you do if you are a Private Training Establishment (PTE) and only use provider based and/or provider based extramural modes of delivery?

You need to submit the new PTE Delivery Component MoP template for L3-7 training. It includes new fields to capture mode of delivery. See an example of the new MoP. (Word, 31Kb)

What should you do if you are a Tertiary Education Institute (TEI) and only use provider based and/or provider based extramural modes of delivery?

You need to submit the new TEI Delivery Component MoP template for L3-7 (non-degree) delivery. It includes new fields to capture mode of delivery. See an example of the new MoP. (Word, 31Kb)

What should you do if you only use work-based, work-based: pathway to work, and assessment and verification modes?

You need to submit the new industry training register (ITR) Delivery Component MoP template. It includes new fields to capture mode of delivery and subject.

See an example of the new MoP. (Word, 31Kb)

What should you do if you use both work-based AND provider-based modes of delivery?

You need to submit the PTE Delivery Component MoP template or the TEI Delivery Component MoP template AND the ITR MoP template.

Do I use the new UFS MoP to report both UFS delivery component and L7 (degree) and above commitments?

No. Only use the new UFS Delivery Component MoP to return commitments for delivery at level 3 to 7 (non-degree).

Continue to use the SAC7D+ MoP (which remains the same as the current SAC3+ MoP) to return commitment for L7 (degree) and above

TEOs who deliver under UFS Delivery Component and L7 (degree) and above will complete 2 MoPs.

Why was a separate MoP created for UFS delivery component?

We currently have separate MoPs for each of our funds, so separate Delivery Component MoPs for UFS is consistent with our existing approach for data exchange.

The interim approach has been designed to minimise system change as much as possible for TEOs and student management system vendors.

Who submits learner data through ITR, SDR or additional reporting?

The Lead TEO – this is the TEO that holds the enrolment (learner) and is funded for all aspects of the learning.

The Lead TEO may subcontract learning to other providers.

Subcontractors should not report delivery.

Reporting provider-based aspects of work-based training arrangements must be reported by the Lead TEO through the SDR under source of funding 11.

Additional data will be submitted by the Lead TEO via Workspace2 (WS2). Download an example template (Word, 31Kb).

How do I use the Source of Funding field in the SDR?

  • Use source of funding code 01 for SAC L7 & above.
  • Use source of funding code 37 for UFS learning that only uses provider-based & provider-based: extramural modes of delivery.
  • Use source of funding code 11 for UFS learning for the provider-based elements of otherwise work-based delivery.

What is funding source code 11 and why is it important?

Funding code 11 (SOF11) captures the provider-based component of work-based delivery, for example block courses or night classes.

Providers will have to submit SOF11 data against the relevant, approved qualification that has been entered in Services for Tertiary Education Organisations (STEO). Generic qualifications, such as “Off-job training” must not be used.

If a learner is engaged in ‘off job’ learning at the end of the month, do I report them as active in the ITR?

Yes. Learners remain active in the ITR regardless of the learning setting, providing they are actively learning.

How do I report managed apprenticeships now?

We are working through options for reporting managed apprenticeships and will engage with TEOs in due course.

When are the additional reports and why do I need to submit them?

There will be at least two WS2 reporting templates. We anticipate that they will be submitted at the same time as SDR submissions. The templates are:

  • Work-based – mixed mode delivery
  • Work-based: pathway to work

We use the additional reporting to match data across the SDR and ITR datasets.

Download an example template. (Word, 29 Kb)

A further template may be required for the Assessment and Verification mode.

How do I use the Attend field in the SDR?

Use the Attend field in SDR to identify provider-based or provider-based extramural modes of delivery. Updated guidance for the use of this field will be provided.

Is ITR being shut down?

No. The ITR continues to be required for the interim solution. There are no changes to ITR proposed.

When will my Delivery Component Mix of Provision (MoP) submission for 2023 be available to view in Ngā Kete?

We are currently updating the Ngā Kete products to reflect new UFS functionality and fields.

My Industry Training Commitments app:

  • The My Industry Training Commitments app covers commitments and actuals relating to data submitted via the Industry Training Register.
  • Updates to include UFS MoP data in the app are underway.
  • Data definitions for the new UFS reporting fields (ie, Mode of delivery, Subject category and Study type) are now available in the app.
  • The app will be renamed to My ITR Commitments.
  • Expected delivery by the 3rd quarter of 2022.
  • These changes will allow users to view their commitments by Mode of delivery, Subject category and Study type (as reported in the MoP submission).

My Commitments app:

  • The My Commitments app covers commitments and actuals relating to data submitted via the Single Data Return (SDR).
  • Updates to include UFS MoP data to this app are being carried out.
  • This app will be renamed to My SDR Commitments.
  • Expected delivery in the 4th quarter of 2022.
  • These changes will allow users to view their commitments by Mode of delivery and will reflect new UFS funding categories (as reported in the MoP submission).