5 August 2010
The Government has announced some changes to the Training Opportunities Programmes (TOPs).
TOPs will still be aimed at enabling learners with low qualifications, and who are at risk of long term unemployment, to receive training aimed at improving their work skills and preparing them for work. While the total amount of funding available for TOPs in 2011 will remain the same, the TOPs appropriation will move to two streams of funding:
- Forty percent of TOPs funding will be allocated to providers through Work and Income. Provision will be targeted towards more work-ready clients. There will be a focus on the delivery of shorter, industry-focused provision linked to local employment needs. Work and Income will be expecting employment outcomes in a relatively short time period from this part of the fund.
- From 2011 onwards, sixty percent of TOPs funding will be allocated to providers through the Tertiary Education Commission (TEC). Provision will be targeted towards those at medium and high risk of long term unemployment. There will be a more explicit focus on improving literacy and numeracy skills. The main aim is to place people into sustainable employment. There will also be time limits on how long clients spend on these programmes.
From 2011 Work and Income will take a targeted approach to referring clients to programmes. This will ensure that more work-ready people are being referred to Ministry of Social Development (MSD) work-focused programmes, and those needing more foundation and work-focused training will be referred primarily to TEC programmes.
TEC and MSD will be working together on this. While transitioning providers, we will be taking a considered path so we can preserve a nationwide network of providers. We understand that this change will affect various providers differently. We will work closely with the sector over the next 12 months to minimise the disruption throughout this transition.
Providers will receive a letter from MSD and the TEC in the next couple of days with more information. Below are some Frequently Asked Questions, the MSD website also has TOPs information. If you have further questions you can contact your Regional Commissioner for Social Development, or the TEC Service Centre.
Training Opportunities FAQs
What is happening to Training Opportunities (TOPs) funding?
The Government has decided to make some changes to the way TOPs funding is allocated.
The total amount of funding available for TOPs in 2011 will be the same as now.
TOPs will still be aimed at enabling learners with low qualifications, and who are at risk of long term unemployment, to receive training aimed at helping them improve their work skills and preparing them for work.
What is changing?
The Tertiary Education Commission (TEC) and the Ministry of Social Development (MSD) will now allocate Training Opportunities Programmes (TOPs) funding between them in a 60:40 split.
Overall this will allow better outcomes for the unemployed, employers and the taxpayer. It will also give New Zealand an expected 10,400 extra training places per year for the same funding.
Forty percent of TOPs funding will be allocated to providers through Work and Income. Provision will be targeted towards more work-ready clients. There will be a focus on the delivery of shorter, industry-focused provision linked to local employment needs. This means Work and Income will be expecting employment outcomes in a relatively short time period from this part of the fund.
From 2011 onwards, sixty percent of TOPs funding will be allocated to providers through the Tertiary Education Commission. Provision will be targeted towards those at medium and high risk of long term unemployment. There will be a more explicit focus on improving literacy and numeracy skills. The main aim is to place people into sustainable employment. There will also be time limits on how long clients spend on these programmes.
What kind of programmes will the TEC be purchasing?
The TEC will be looking to fund programmes with an emphasis on adult literacy and numeracy assistance and more employment-focused provision.
This training will be targeted towards learners who need to build foundation skills along with work skills in order to enter the local work force. There will also be time limits on how long a student spends on these programmes.
What kind of programmes will MSD be purchasing?
Around 50% of people on the existing TOPs programme are very close to being work ready.
MSD will purchase short, employment-focused training programmes that will get this group into work and able to support themselves.
The change recognises there is an opportunity to leverage off the work MSD is already doing
What happens next?
The TEC and MSD are working closely together on refocusing TOPs.
Letters are going out to providers on August 5 to explain the next steps.
We are planning a number of regional workshops around the country, which will take place on Wednesday 11 August. We will be in touch in the next few days to let you know when and where the briefing will be.
At these workshops providers will be able to hear more detail from the TEC and MSD.
What kind of a transition period are we looking at?
Moving to a new way of working takes time and requires a measured approach. TEC and MSD are taking a considered path to transition so providers can adjust and we can preserve country-wide provision.
As soon as we have a confirmed timeline for the transition process, and as the implementation plans firm up, we will let providers know.
What are your expectations of providers with this refocus?
This change shows that the TEC has confidence in the sector’s overall flexibility and ability to deliver appropriate training that focuses on the new priorities.
What’s going to be different for providers?
Providers may be contracted by TEC, MSD or in some instances both agencies.
The new approach means providers will need to focus on either:
- Shorter, industry focused provision focused on local employment needs (funded through MSD), or
- Programmes that provide greater emphasis on adult literacy and numeracy and more employment focused provision (funded through TEC). There will also be time limits on how long an individual learner can spend on these programmes.
The TEC and MSD will be in touch with providers over the next few days with details of regional workshops where you will hear more.
How are the TEC and MSD going to make their purchasing decisions?
Both agencies will be working closely together to develop appropriate criteria and processes.
The TEC and MSD will be in touch with providers over the next few days with details.
Will any providers miss out on funding altogether?
As the criteria and processes are still being developed, we haven’t got to that level of detail yet.
Organisations which currently provide TOPs training, and have met the performance benchmarks in 2009, will continue to have an opportunity to deliver programmes in 2011 with either TEC or MSD or in some cases a combination of the two.