For information on the other component, see delivery component.

About the learner component

The learner component provides funding for providers to support learners.

Providers decide how to spend the funding in a way that supports their learners’ needs.

Providers that receive vocational education and training (VET) funding are eligible for funding under the learner component of DQ 3-7. You do not need to apply. Instead, the funding is allocated as part of your overall funding for VET.

Funding calculations are based on learners from two groups

Learner component funding is calculated based on the enrolments of two groups of learners. These groups are:

• learners with low prior achievement (someone who at the date of enrolment has not previously achieved a qualification on the NZQCF at Level 3 or above or equivalent)
• disabled learners.

Between 2023 and 2025 learner component funding also included enrolments of Māori and Pacific learners.

These groups serve as a proxy for learners who need additional support to be successful in VET.

This does not mean that funding should only be used for learners in these two groups. Instead, providers are expected to:

• identify the unique needs of all their learners
• make decisions about how to support them, and
• the learner component funding accordingly.

Funding rates for total learner component allocation calculations

Funding rates for each year can be found in Funding rates by year.

Calculations for learners with more than one eligible characteristic

Funding will be allocated by allocating one portion of learner component funding at the relevant rate for any learner identified in the data as disabled and/or having low prior achievement.

Learners who are identified in the data as disabled and having low prior achievement will receive one portion of learner component funding.

Recovery of funding

Learner component funding cannot be recovered through the wash-up process.

Performance element funding

Between 2023 and 2025, providers that received a certain amount of learner component funding were required to meet performance expectation milestones, which accounted for 20 percent of the provider’s total learner component funding allocation.

From 2026 providers no longer need to meet performance expectations to receive learner component funding.

Instead, performance expectations will be included in existing quality assurance and performance processes. All learner component funding will be distributed to eligible providers in equal monthly instalments.