2024 funding policy settings changes

Ngā huringa tautuhinga kaupapahere tuku pūtea 2024

The Minister of Education has approved the 2024 funding determinations, Fees Free delegation, new Tūwhitia fund delegation and fee regulation settings. This page contains a summary of the variations made to the updated 2024 policy settings.

All funding determinations were updated to reflect new funding rates following Budget 2023 announcements and subsequent announcements for DQ7+.

Funding policy settings	Changes
Delivery at Levels 1 and 2 on the New Zealand Qualifications and Credentials Framework funding determination	changed references from ‘special education’ to use the term ‘inclusive education.’ The term ‘special education’ was outdated and this aligns with the terminology used by NZQA; specified that one EFTS is equal to 120 credits; specified that section 357 of the Education and Training Act 2020 (the Act) applies to refunds from withdrawals for learners enrolled at PTEs; and added a clause requiring TEOs who receive funding to assign course classifications and related codes in the SDR. This process is already reflected in the funding conditions.
Delivery at Levels 3-7 (non-degree) on the New Zealand Qualification and Credentials Framework and all industry training funding determination	specified that one EFTS is equal to 120 credits; clarified that TEOs, rather than the TEC, are responsible for assigning an EFTS value to qualifications; reclassified delivery for learners residing in Correctional facilities to ‘provider-based’ rather than ‘provider-based: extramural,’ to reflect the greater level of support required; removed the term ‘Equivalent Full-Time Learner’ (EFTL), and replaced with ‘EFTS’ as the standard unit of measure for both provider-based and work-based learning removed a paragraph that relates to policy intent rather than procedure; removed a clause relating to provisional requirements for 2023; added a section relating to performance expectations for learner component funding; specified that section 357 of the Education and Training Act 2020 (the Act) applies to refunds from withdrawals when relevant; and updated Table 1 and Table 2 to align with the Delivery Classification Guide.
Delivery at Level 7 (degree) and above on the New Zealand Qualifications and Credentials Framework funding determination	specified that one EFTS is equal to 120 credits; clarified that TEOs, rather than the TEC, are responsible for assigning an EFTS value to qualifications; increased the number of annual medical undergraduate first year intakes; and updated Table 1 and Table 2 to align with the Delivery Classification Guide (formally known as the Course Classification Guide).
English Language Teaching funding determination	changed the name of the determination, and terminology throughout the determination, from ‘Specialised English for Speakers of Other Languages’ (ESOL) to ‘English Language Teaching’ (ELT); clarified the cumulative amount of time for which learners can be funded and included that prior approval can be granted by the TEC for enrolments over the maximum enrolment period; and updated eligibility criteria in relation to family members of Christchurch Response Visa holders.
Literacy and Numeracy Provision funding determination	removed ‘identifying learning gain’ from the purpose of the determination; added assessment using the Literacy and Numeracy for Adults Assessment Tool (LNAAT) to learner eligibility requirements, to ensure enrolments are for learners at Step 2 or lower; added a required funding condition that a TEO may not subcontract funded activities without written consent from the TEC, this process is already reflected in the funding conditions; added REAP Aotearoa as a TEO for the purposes of the Employer-led Workplace Literacy and Numeracy Fund; added that a TEO can receive written permission from the TEC to deliver below the required intensity of provision; and removed the clause that made learners enrolled in provider-based, extramural or work-based: pathway to work modes of delivery ineligible for Workplace Literacy and Numeracy funding. This is because learners can also be enrolled in a Level 3 programme.
Māori and Pasifika Trades Training funding determination	changed the wording for brokerage services to reference transition to ‘relevant’ rather than ‘sustainable’ employment; and changed eligible micro-credential criteria to be between 20 and 40 credits.
Performance-Based Research Fund funding determination	added ‘Contributions to the Research Environment’ as a required section for an Evidence Portfolio.
Strategic Component of the unified funding system for vocational education and training funding determination	changed reference to extramural programmes to ‘funded as provider-based: extramural delivery under the unified funding system;’ clarified TEC discretion in determining a suitable portion of funding to be allocated; and separated a clause into a separate paragraph relating to recovery of funding if funds are not contractually committed by the end of the year it was allocated for.
Te Tahua O Te Reo Kairangi funding determination	added to the purpose of the fund, ‘the development of immersion delivery across tertiary education settings;’ and clarified wording for the required funding condition relating to measuring impacts.
Youth Guarantee funding determination	added a clause around health and safety and regulatory compliance provision to align with other determinations; added clauses requiring the development of pathway plans as a condition of funding; and added a clause requiring TEOs who receive funding to assign course classifications and related codes in the SDR. This process is already reflected in the funding conditions.
Fees Free Tertiary Education and Training funding delegation	removed references to the Targeted Training and Apprenticeship Fund; updated eligibility criteria in relation to family members of Christchurch Response Visa holders.; simplified the provisions to allow the TEC to use its discretion to write off a learner’s consumption of their Fees Free entitlement due to impacts of COVID-19 on their learning, to align with the general provisions for exceptional personal circumstances.
Fee regulation settings	the Annual Maximum Fee Movement (AMFM) rate has been set to 2.8% for 2024; the AMFM exception criteria has been updated; changes to how the AMFM is regulated to allow providers flexibility to set lower fees temporarily; the Micro-credential per credit fee limit has increased to $64 per credit; and changes to Student Services Fees (SSF) expectations.