Intensive Literacy and Numeracy – ESOL

Funding and payments

Funding allocation

ILN – ESOL funding is approved through the Investment Plan process.

When allocating funding, the TEC will consider:

  • whether the tertiary education organisation (TEO) is eligible for funding

  • the nature of the provision offered by the TEO

  • the TEO's past performance.

Additional considerations 

When allocating funding, the TEC will also take into account the following additional information:

  • whether the TEO can demonstrate that it is recruiting appropriate ESOL learners in its region and can show how its programme takes into account the needs of the learners in its region

  • whether the TEO can accommodate learners whose learning may need to be delivered in a different context and deliver programmes which may be tailored to accommodate the aspirations of each learner, for example ESOL for work, ESOL for further education, ESOL for social interaction

  • evidence of the quality of a TEO’s ESOL programmes, including evidence of learner progression, outcomes and pathways.

The TEC prioritises funding to TEOs located in common refugee settlement areas, including:

  • West Auckland
  • South Auckland

  • Hamilton

  • Palmerston North

  • Wellington

  • Lower Hutt

  • Porirua

  • Christchurch

  • Nelson

  • Dunedin.

Funding rate

Funding for ILN – ESOL provision is allocated at a fixed rate for 200 hours of literacy, numeracy, or literacy and numeracy, tuition. The tuition must be delivered at the intensity of 200 hours over a 10 to 26 week period, and learners must access, on average, 200 hours of tuition per learner. See Condition ESOL013.

The TEC expects that learners access, on average, 200 hours of tuition per learner.


ILN – ESOL 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.

Recovery of funding

The TEC is required under the Specialised English for Speakers of Other Languages funding mechanism to recover funding where the funded amount was greater than it should have been. Should a TEO receive ILN – ESOL funding that is greater than it should have been, recovery of this funding will be made in accordance with Condition ESOL009.

Recovery of funds is based on aggregate hours of actual, face-to-face delivery (i.e. learner attendance), as reported through the final end-of-year report.

The recovery is made by multiplying the agreed number of funded 'places' in an Investment Plan by the volume of delivery required per 'place', then subtracting the total number of hours delivered based on learner attendance, in the calendar year. This gives the recoverable amount, which is the total under/over delivery in hours.

Any identified under-delivery will result in recovery of the funds associated with the hours not delivered. For example:

(Places in Plan x 200 hours) – Total hours delivered = under/over-delivery or recoverable amount in hours

This means that if 10 places were agreed in the Investment Plan and the total number of actual hours delivered was 1900, the 100 hours not delivered would be recovered. The hourly rate is calculated by dividing the funding rate per place by the number of hours that constitute one place. If the funding per place is $3750, this will equal $18.75 per learning hour based on delivery of 200 hours:  $18.75 x 100 hours undelivered = $1875 to be recovered. 

  • Last changed: 18 February 2016
  • Last verified: 18 February 2016