Funding and Payments

Funding and Payments

Last updated 20 September 2021
Last updated 20 September 2021

Payments are made directly to TEOs. TEOs are expected to decide how, when and where the funding will be prioritised to support the learners most in need.

Applying for funding

There is no application process for HAFL funding. Payments are made directly to TEOs. TEOs are best placed to decide how, when and where the funding will be prioritised to support the learners most in need.

Funding to date

In September 2021, an additional $20m (excluding GST) was made available to support learners experiencing hardship as a result of COVID-19 restrictions. Of the $20 million available, we allocated over $10 million to providers in September 2021.

This was to facilitate a quick allocation to TEOs in need of funding, while retaining some of the total funding for possible future COVID-19 scenarios.

All TEOs who received a HAFL allocation in June/July 2021 will receive a further allocation. All TEOs who responded to our expression of interest, earlier in September 2021, will receive an allocation.  

This funding is the latest instalment, September 2021, following funding allocations in June/July 2021 and May/June 2020.

Allocation method

An overview of the allocation method is as follows, with a more comprehensive explanation further down:

  1. The HAFL allocation is based on the amount of TEC funding TEOs receive for learners.
    • This is then analysed to show how many of those learners are school leavers from a decile 1-3 school.
  2. Each TEO is then allocated funding per enrolled learner*, with more being allocated for a learner from a decile 1-3 school.
  3. If we didn’t have school leaver data, or there were low numbers of learners funded, we applied a proxy to a TEO’s learners equal to the overall percentage of learners from a decile 1-3 school.

For the additional funding allocated in September 2021 the following method was used:

  1. TEOs received 65% of their previous (June/July 2021) allocation.
  2. The remaining 35% was allocated by prioritising learners based in the Auckland Region.

*We use the amount of TEC funding received as a proxy for the number of learners, so when we say per learner here we mean per $ funded.  

More detailed allocation method

The allocation in June and July 2021 used the same methodology as in 2020.  The 2021 eligible funding level and school-leaver decile data were used to calculate indicative allocation.  The process was as follows:

  1. Calculate the total amount of 2021 funding allocated to TEOs across the funds eligible to be supported by HAFL.
  2. Capture the percentage of school leavers that had enrolled from a decile 1-3 secondary school in the last three years for which we have data at each TEO (2017 and 2019, inclusive).
  3. This percentage (from previous point 2.) was used to estimate the proportion of learners throughout the learner base that may be more likely to benefit from funded support.
  • For this percentage of existing 2021 funding, $0.011 was allocated per dollar of eligible 2021 funding.
  • For the rest of the existing 2021 funding, $0.0025 was allocated per dollar of eligible 2021 funding.
  1. For TEOs with fewer than 50 learners who left secondary school between 2017 and 2019, we applied the average percentage of learners who were from decile 1-3 school leavers, which across all TEOs is 14.3%.
  2. To ensure a minimum support level for all TEOs, regardless of size, final allocation is dependent on the total level of funding a TEO receives. We have therefore set a minimum allocation for all TEOs based on their level of funding, as shown below.
  • If 2021 funding allocation of eligible Funds was more than $1m it is allocated the greater of:
    • $8,000, or
    • The 1-3 Decile School Leaver Weighted allocation as per the above method.
  • If 2021 funding allocation of eligible Funds was between $0.5m and $1m, it is allocated the greater of:
    • $6,500, or
    • The 1-3 Decile School Leaver Weighted allocation as per the above method.
  • If 2021 funding allocation of eligible Funds was between $0.1m and $0.5m, it is allocated the greater of:
    • $4,000, or
    • The 1-3 Decile School Leaver Weighted allocation as per the above method.
  • If 2021 funding allocation of eligible Funds was between $0 and $0.1m, it is allocated the greater of:
    • $3,000, or
    • The 1-3 Decile School Leaver Weighted allocation as per the above method.

For the September 2021 allocation weighting was given to Auckland based learners. $10 million of the total $20 million budget was allocated in September 2021.  Allocations were determined in the following manner:

  1. TEOs received 65% of their accepted allocations in 2021 (as calculated above). For TEOs who replied to our expression of interest, the above methodology was applied before we applied the 65% increase.
  2. The total number of Auckland based learners, for each TEO is calculated. For a TEO with extramural learners an average percentage (35%) was used to estimate the proportion of learners in Auckland.
  3. The remaining funding (35%), from the $10m, is then distributed across the TEOs based on the percentage of Auckland based learners
  4. To ensure a minimum support level for all TEOs, regardless of size or the number of learners in the Auckland-region, a minimum allocation for all TEOs is shown below. The result of this was added to your 65% increase noted above.
  • TEOs delivering courses to 1 to 10 learners in the Auckland region are allocated the greater of:
    • $1,000, or
    • The percentage of learners where courses are delivered to learners in the Auckland region.

or

  • TEOs delivering courses to 11 to 25 learners in the Auckland region are allocated the greater of:
    • $2,500, or
    • The percentage of learners where courses are delivered to learners in the Auckland region.

or

  • TEOs delivering courses to 26 to 50 learners in the Auckland region are allocated the greater of:
    • $5,000, or
    • The percentage of learners where courses are delivered to learners in the Auckland region.

or

  • TEOs delivering courses to 51 or more in the Auckland region are allocated the greater of:
    • $7,500, or
    • The percentage of learners where courses are delivered to learners in the Auckland region.