The Funding Mechanism for Equity funding is issued by the Minister of Education. This outlines the essential components of the Equity fund. It provides the mandate for us to allocate the funding and what the funding can be used for, and details how we administer the fund.

Funding is agreed through a tertiary education organisation’s (TEO’s) Investment Plan (Plan). A TEO that receives Equity funding is required to:

• comply with requirements of the Education and Training Act 2020, and
• comply with the conditions in its funding approval documents, including the specific Equity Fund conditions.

The purpose of Equity funding is to support tertiary education organisations (TEOs) to improve access, participation, and achievement of all learners within the tertiary education system.

Equity funding is a ‘top-up’ to Student Achievement Component (SAC) and Industry Training funding – to help cover the costs of providing extra support for these learners. It is not intended to be the sole or primary source of funding; it should supplement other investments to ensure the success of all learners.

For 2022, the basis of Equity funding has been expanded to include Vocational Education Training (VET) provision, and to include all TEO types.

• Equity funding for Māori and Pacific learners is designed to improve participation in, and achievement of, qualifications on the New Zealand Qualifications Framework (NZQF).
• Equity funding for disabled learners is designed to improve these learners’ participation in tertiary education and achievement of all qualifications.
• Equity funding for learners with Low Prior Attainment (LPA) is to improve achievement of qualifications between Level 3 and Level 7 (excluding degree study) on the NZQF and all industry training.

Equity funding for Māori and Pacific learners 

Equity funding for disabled learners 

Equity funding for learners with Low Prior Attainment (LPA)

This component of Equity funding is based on young learners with low prior achievement (LPA), who do not have a qualification at level 3 or above.

The table below sets out key information about the new 2022 funding and eligibility.

Equity Funding Rates

The 2022 funding rates below include a 1.2% increase to funding for 2022 from 2021 rates. The following rates only apply to eligible organisations.

Funding calculation

For how we calculated your original 2022 allocation, please refer to the following list of tables, found above:

• Equity funding for Māori and Pacific learners, and
• Equity funding for disabled learners, and
• Equity funding for learners with Low Prior Attainment.

How we approach work-based training that shifts from transitional ITOs to providers

Where funding has been allocated to transitional ITOs, it will move to providers as transition plans are finalised and followed through.

We re-calculated your 2022 Equity allocation after your Final Allocation was approved 

After your 2022 final allocation was approved, we made adjustments to your 2022 Indicative Allocation after assessing:

• Your August 2021 SDR data compared to August 2020 SDR data; or
• Your ITR data for 2021 as at 3^rd September compared the same date in 2020.

The adjustments will be made as follows:

• Where a TEO reported lower eligible enrolments in August 2021 than in August 2020.The Equity funding allocation for this TEO remained unchanged.
• Where a TEO reported higher eligible enrolments in August 2021 than in August 2020. The Equity funding allocation for this TEO increased by the same percentage.

Approach for the TEOs who have not submitted their 2021 August SDR

• The adjustment is only calculated for TEOs that submitted their 2021 August SDR by the 3 September 2021

Approach for mergers

Allocations for Te Pūkenga will be based on 2020 delivery data submitted by each of its subsidiaries.

Mergers in 2021, after indicative allocations have been issued, will be reflected in the final approved funding allocations

Approach for TEOs for which there is no 2020 and/or 2021 data available for these calculations

• For funded providers who deliver for the first time in 2021 we will use the 2021 December data return to calculate the allocation (in early February 2022).
• For funded providers who deliver for the first time in 2022 we will use the August 2022 data return to calculate the allocation (in early September 2022)
• If there is no SDR submitted or zero EFTS as at August 2022 data return, there will be no Equity allocation.

If you receive Equity funding that is greater than it should have been, or that you were not entitled to receive, we will recover the extra funding.

This condition can be found in our 2022 Funding Conditions Catalogue (PDF, 1.9 Kb)

Equity funding is paid in equal monthly instalments from January to December.   

Under Schedule 18 Clause 16 of the Education and Training Act 2020 (the Act), we may suspend or revoke some or all funding given under section 425 of the Act if we are satisfied on reasonable grounds that:

• the TEO has not complied, or is not complying, with a condition on which funding has been given under section 425 of the Act, or
• the TEO has not provided, or is not providing, adequate and timely information required by the TEC or Ministry of Education under section 425 of the Act.   

If a TEO has its funding approval revoked in accordance with Schedule 18 Clause 16 of the Act, the unspent portion of funding is repayable to us (see Condition: Suspension, revocation or withdrawal of Equity funding). 

Question: My organisation is a transitional ITO, and I note that the industry training funding increase can be used to support our learners and employers as we transition. This seems to allow for a very broad use of this funding. Are there any learner or employer related costs that it definitely can’t cover?

Answer: We expect transitional ITOs to consider activities that will improve learner outcomes, and to work with their transition partners to ensure continuity of support, where required. If you are considering substantially changed or new activities, we encourage you to engage with your RMI to discuss this.

Question: We’re a transitional ITO now, but our arranging training will be transferring later in 2021. Can we use the industry training funding increase to retrospectively cover costs supporting learners and employers that we have already incurred and paid for in 2021?

Answer: No. This funding is intended for activities in 2022.

Question: My organisation is a PTE, do we have to do anything to receive the disabilities top up for Equity Funding

Answer: No, you do not need to do anything to receive the disabilities top up for Equity funding.  But it is important that you continue to complete your MoP and SDRs as usual. You may be asked to submit a retrospective report on how you have used the funding during the year; this report template will be uploaded to your Workspace 2.

Question: Is the increase in Equity funding just for 2022?

Answer: The funding provided by this initiative continues through until the introduction of the UFS from 1 January 2023.

Decisions on the final form of the UFS have not yet been made, so the specifics are not available, however changes to funding categories and rates are likely to occur when the UFS is introduced from 2023.

Further information on the details of the UFS will be available as soon as possible. For the latest information go to the unified funding system page.

Question: Are micro-credentials and training schemes eligible VET provision?

Answer: Yes, if they are within the scope of the VET changes to Equity funding then they are covered.