Funding and payments

Funding and payments

Last updated 21 July 2020
Last updated 21 July 2020

This page provides information about how Workplace Literacy and Numeracy (WLN) TEO-led funding is set, funding allocation, funding rate, funding calculation, payment and funding recovery.  

These pages relate to WLN TEO-led funding. See Employer-led Workplace Literacy and Numeracy for information about the WLN Employer-led funding.

Funding

The Literacy and Numeracy provision funding mechanism is issued by the Minister responsible for tertiary education. The funding mechanism outlines the general form and essential components of the 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 WLN funding (TEO-led) is required to:

Funding for WLN is set through the Government’s annual budget process. We determine the appropriate amount of WLN TEO-led funding for a TEO.

Through each TEO’s Plan, we agree the mix of provision (MoP). This includes the:

  • programmes that the funding can be used for
  • allocation of funding towards each programme, and
  • volume of delivery expected from each programme.

Payments

WLN TEO-led 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. 

Funding allocation

2021 Workplace Literacy and Numeracy TEO-Led indicative allocation

The purpose of Workplace Literacy and Numeracy TEO-led funding

Workplace Literacy and Numeracy (WLN) TEO-led funding supports the provision of literacy and numeracy programmes for employees to increase their literacy and numeracy skills, and contribute to workplace productivity.

We fund workplace literacy and numeracy provision to:

  • increase the literacy and numeracy skills of employees, and
  • contribute to workplace productivity through the provision and evaluation of literacy and numeracy learning in a workplace context.

How we calculated your 2021 indicative allocation for Workplace Literacy and Numeracy TEO-Led

The information below provides a summary of how your indicative allocation was calculated. For more details regarding your specific allocation, please contact customerservice@tec.govt.nz or your Relationship Manager.

Your prior performance information informed the calculation of your 2021 indicative allocation.

Starting point

To determine the starting point for calculating your 2021 indicative allocation we compared your 2019 actual Workplace Literacy and Numeracy (WLN) TEO-led delivery with your 2020 allocation.

Note: Your 2019 actual delivery has been adjusted for any additional funding provided (including flexible funding), funding rate increases, and significant policy changes. Your reviewed 2020 allocation includes Plan changes and excludes one off adjustments. We make these adjustments to ensure we are accurately comparing your 2019 actual delivery with your 2020 allocation, in dollar terms.

If your 2019 actual delivery was below 100%, we used the lesser of either your:

  • 2019 actual delivery, or
  • 2020 allocation

If your 2019 actual delivery was 100% or above, we used your:

  • 2020 allocation

If you delivered Workplace Literacy and Numeracy (WLN) TEO-led for the first time in either 2019 or 2020, we used your:

  • 2020 allocation

Determining your final 2021 funding allocation

To determine your final 2021 allocation and Plan approval, we will consider the following information in our assessment and/or engagements with you:

  • Your actual delivery of hours as submitted through the Actual reporting December 2019 on Workspace2; and
  • Your year-to-date 2020 delivery and any further rate increases.

Funding rates for Workplace Literacy and Numeracy TEO-Led

The funding rates per Learner-hour are:

Category Funding rate
Learner-hour $77.57

Key changes to our approach for 2021

In previous years, the starting point was calculated using actual delivery and was not adjusted based on whether delivery was below or at 100%. Further plan increases or in-year adjustments were not accounted for.

We will now take into account if delivery volume was at or below 100% and will include in-year Plan adjustments where necessary.

Allocation for NZIST subsidiary

Allocations for each NZIST subsidiary will be based on the 2020 data for it or for the ITP it replaces.

An indicative funding allocation may be made to a TEO that later transfers delivery to a transitional or other TEO. In that case, we will engage with the new TEO to transfer and adjust the allocation.

Funding rate

WLN TEO-led provision is funded at a fixed rate of $76.35 per hour of face-to-face literacy, numeracy, or literacy and numeracy, tuition.

From 1 January 2021, the fixed rate increases by 1.6% to $77.57 per learner hour.

Each hour of provision not attended by the learner is not to be reported and is not funded.

Note: Delivery to learners receiving less than 25, and more than 80, hours (if eligible) is also funded, not just delivery to learners receiving 25 to 80 hours. See Eligibility (Programme eligibility).