2026 Funding Conditions Changes

2026 Funding Conditions Changes

Last updated 10 December 2025
Last updated 10 December 2025

Changes to the 2026 Funding Conditions Catalogue are grouped into the following sections.

Multiple Funds

Definitions & Interpretations

Change subject Notes Reason
Award/s Added the definition of ‘award’ to align with the Education and Training Act 2020. Technical accuracy.
Family Shifted the definition of ‘family’ to the ELT Refugee English funding conditions. Clarity.
Industry skills board Added the definition of ‘Industry skills board’ to reflect changes to the Education and Training Act 2020. Legislative change.
New Zealand Qualifications Authority (NZQA) Added the definition of ‘NZQA’ to be consistent with other acronyms. Clarity.
NZIST Replaced Te Pūkenga with NZIST to reflect changes to the Education and Training Act 2020. Legislative change.
Polytechnic Added the definition of ‘Polytechnic’ to reflect changes to the Education and Training Act 2020. Legislative change.
Programme Added the definition of ‘Programme’. Clarity.

Base funding conditions

Change subject Notes Reason
External Evaluation and Review (EER) status Updated to reflect that 2026 is a transition year from NZQA’s current External Evaluation and Review (EER) to the integrated Quality Assurance Framework (iQAF). Clarity and accuracy.
Industry Skills Board Added requirements for ‘Industry Skills Boards’ to comply with NZQA assurance and annual fee rules to reflect changes to the Education and Training Act 2020 and that they will be delivering work-based learning in 2026. Legislative change.
Investment Plan Learner Success and Disability Action Plan Moved and refined a condition that TEOs required to submit Learner Success Plans , Disability Action Plans, and Progress Updates must submit them to the TEC’s satisfaction in the form, and on the date, we specify. Progress toward milestones may influence future funding decisions. Clarity.
New Zealand Institute of Skills and Technology Changed references to ‘Te Pūkenga’ to ‘the New Zealand Institute of Skills and Technology’ to reflect changes to the Education and Training Act 2020. Legislative change.
Polytechnic Included ‘Polytechnic’ in the definition of Tertiary Education Institution to reflect changes to the Education and Training Act 2020. Legislative change.
Supply of information Added a condition that if you're the only provider of a qualification and plan to stop offering it, you must notify TEC at least 28 days in advance. Allows the TEC to consider continuity of provision.
Supply of information Added a condition that information provided to TEC about programmes and activities, learners, and performance is accurate and up to date. Clarity.

Most funds

Change subject Notes Reason
Learner verification Added ‘a current New Zealand firearms licence’ to the list of documents that can be sighted to verify a learner’s identity. Consistency.
Learner verification Earlier in 2025 the FCC was updated to allow “expired but not cancelled passports” to be sighted to verify a learner’s identity. Consistency.
New Zealand Institute of Skills and Technology Changed references to ‘Te Pūkenga’ to ‘the New Zealand Institute of Skills and Technology’ to reflect changes to the Education and Training Act 2020. Legislative change.
Polytechnics and the New Zealand Institute of Skills and Technology Included ‘Polytechnic’ and ‘the New Zealand Institute of Skills and Technology to sections that previously included Te Pūkenga. Legislative change.
Subcontracting Changed references to TEC ‘consent’ to ‘written approval’. Consistency and clarity.

Foundation and Youth Transition Funds

Adult and Community Education (ACE) in Communities, and ACE in Schools

Change subject Notes Reason
Funding priorities Removed conditions on ‘Funding priorities’. Amendments to the funding mechanism.
Learner eligibility Updated wording to clarify that eligible learners must be 16 years of age or over. Technical accuracy.
Programme eligibility – face-to-face, synchronous, and asynchronous Added a condition allowing synchronous online delivery, without prior approval from TEC, where this is in the best interest of the learner or learners.
Added a condition that TEO must take into account “enabling access to education and the TEO’s capability to deliver effectively” when considering what “is in the best interest of the learner or learners” for online synchronous delivery.
Clarified that TEC approvals for asynchronous delivery are valid for multiple years unless revoked.		 Amendments to the funding mechanism.
Repayment of ACE - polytechnic, Wānanga, or NZIST (ACE in Communities only) Added a condition that if you’re a polytechnic, Wānanga, or NZIST ACE provision is measured in EFTS. Technical accuracy.
Six-hour minimum (ACE in Schools only) Clarified that there is a six-hour minimum requirement for ACE provision in state schools, state integrated schools and charter schools per learner per year. Amendments to the funding mechanism.

DQ1–2

Change subject Notes Reason
Assigning delivery classifications and funding categories Removed references to Appendix 1 of the DQ7–10 funding mechanism as the DCG is the primary source of information for assigning delivery classifications and funding categories for DQ1–2. Clarity.
EFTS value for Supported Learners Clarified that both the NZ2853 and NZ4373 qualifications are calculated using learner hours. Technical accuracy.
Exceeding annual EFTS value of qualification Added Micro-credentials that a learner is enrolled in that lead to a qualification as part of the total EFTS factor for learner enrolments. Technical accuracy.
Extramural delivery Clarified that TEC approvals for extramural delivery given in previous years are valid for the current funding period unless revoked. Amendments to the funding mechanism.
Overseas learners in Realm countries Added a condition to allow overseas learners to be funded if the learner is in Tokelau, the Cook Islands, or Niue in 2026 and enrolled in a programme funded in 2025 or earlier. Amendments to the funding mechanism.
Publishing information online Clarified that ‘a summary of learner feedback’ must be published if you are charging student services fees. Technical accuracy.

EWLN

Change subject Notes Reason
Disqualifying circumstances

Removed the following from disqualifying circumstances for learner eligibility for the WLN Fund:

  • Enrolled in a programme or micro-credential at Level 4 or above on the NZQCF 
  • Enrolled in a New Zealand Apprenticeship.
 Amendments to the funding mechanism.
Hours and intensity Clarified that literacy/numeracy tuition per learner is generally expected to be 25–80 hours, with flexibility based on evidenced individual needs and commitments Clarity.
Learner eligibility Replaced the ‘exceptional circumstances’ requirement for learners with a qualification at level 5 or above to be eligible with a broader requirement that literacy and/or numeracy challenges justify their enrolment. Reflects a more appropriate threshold for exceptions.
LNAAT results and learner eligibility Clarified that areas of low literacy and/or numeracy identified by LNAAT results need to be relevant to the intended area of study. Amendments to the funding mechanism and TEC LNAAT guidance.
Programme eligibility – face-to-face, synchronous, and asynchronous Added a condition allowing synchronous online delivery, without prior approval from TEC, where this is in the best interest of the learner or learners.
Added a condition that TEO must take into account “enabling access to education and the TEO’s capability to deliver effectively” when considering what “is in the best interest of the learner or learners” for online synchronous delivery.
Clarified that TEC approvals for asynchronous delivery are valid for multiple years unless revoked.		 Amendments to the funding mechanism.
Subcontracting Added that TEOs quality assured by NZQA must have NZQA approval to subcontract TEC funded provision. Amendments to the funding mechanism.

ELT ILN

Change subject Notes Reason
Charter schools Added charter schools to the list of eligible TEOs. Amendments to the funding mechanism.
Hours and intensity Clarified that literacy/numeracy tuition per learner is generally expected to be 25–80 hours, with flexibility based on evidenced individual needs and commitments. Clarity.
Purpose Clarified that there aren’t two different groups of learners progressing through the fund by replacing the term “learners” with “them” in the purpose section. Amendments to the funding mechanism.

ELT Refugee English

Change subject Notes Reason
Family definition Added footnote to provide definition of ‘Family’. Clarity.
Purpose Clarified the purpose of the ELT Refugee English Fund to better reflect the intent of raising learners’ English literacy and numeracy skills to help them enter employment or undertake their choice of vocational or degree-level education. Amendments to the funding mechanism.

Gateway

Change subject Notes Reason
Gateway workplace learning placement Updated language from “Gateway work placement” to “Gateway workplace learning placement”. Changes to the Gateway handbook.
Micro-credentials Expanded the eligibility for programmes funded under Gateway to include standalone micro-credentials to allow learners to access a wider range of programmes and align Gateway with changes. Amendments to the funding mechanism.

ILN

Change subject Notes Reason
Charter schools Added charter schools to the list of eligible TEOs. Amendments to the funding mechanism.
Hours and intensity Clarified that literacy/numeracy tuition per learner is generally expected to be 25–80 hours, with flexibility based on evidenced individual needs and commitments. Clarity.
LNAAT results and learner eligibility Clarified that areas of low literacy and/or numeracy identified by LNAAT results need to be relevant to the intended area of study. Amendments to the funding mechanism and TEC LNAAT guidance.
LNAAT assessment Added a condition to allow learners, whose disability represents exceptional circumstances that prevent them from using the Literacy and Numeracy for Adults Assessment Tool, to still be eligible for funding. Amendments to the funding mechanism.
Learner eligibility Replaced the ‘exceptional circumstances’ requirement for learners with a qualification at level 5 or above to be eligible with a broader requirement that literacy and/or numeracy challenges justify their enrolment. More appropriate threshold for exceptions.
Programme eligibility – face-to-face, synchronous, and asynchronous Added a condition allowing synchronous online delivery, without prior approval from TEC, where this is in the best interest of the learner or learners.
Added a condition that TEO must take into account “enabling access to education and the TEO’s capability to deliver effectively” when considering what “is in the best interest of the learner or learners” for online synchronous delivery.
Clarified that TEC approvals for asynchronous delivery are valid for multiple years unless revoked.		 Amendments to the funding mechanism.
Subcontracting Added that TEOs quality assured by NZQA must have NZQA approval to subcontract TEC funded provision. Amendments to the funding mechanism.

TEO-led WLN

Change subject Notes Reason
Charter schools Added charter schools to the list of eligible TEOs. Amendments to the funding mechanism.
Disqualifying circumstances

Amendments to reflect that previously disqualified learners can now access TEO-led WLN. These groups are:

  • those enrolled in a programme or micro-credential at Level 4 or above on the NZQCF; and 
  • those enrolled in a New Zealand Apprenticeship.
 Amendments to the funding mechanism.
Hours and intensity Clarified that literacy/numeracy tuition per learner is generally expected to be 25–80 hours, with flexibility based on evidenced individual needs and commitments. Clarity.
Learner eligibility Replaced the ‘exceptional circumstances’ requirement for learners with a qualification at level 5 or above to be eligible with a broader requirement that literacy and/or numeracy challenges justify their enrolment. More appropriate threshold for exceptions.
LNAAT results and learner eligibility Clarified that areas of low literacy and/or numeracy identified by LNAAT results need to be relevant to the intended area of study. Amendments to the funding mechanism.
Programme eligibility – face-to-face, synchronous, and asynchronous Added a condition allowing synchronous online delivery, without prior approval from TEC, where this is in the best interest of the learner or learners.
Added a condition that TEO must take into account “enabling access to education and the TEO’s capability to deliver effectively” when considering what “is in the best interest of the learner or learners” for online synchronous delivery. 
Clarified that TEC approvals for asynchronous delivery are valid for multiple years unless revoked.		 Amendments to the funding mechanism.
Subcontracting Added that TEOs quality assured by NZQA must have NZQA approval to subcontract TEC funded provision. Amendments to the funding mechanism.

Youth Guarantee

Change subject Notes Reason
2.5 EFTS limit Added a condition that the delivery of the NCEA literacy and numeracy co-requisites standards is exempt from the 2.5 EFTS limit for eligible learners; and that the TEC may specify exemptions to this limit. Amendments to the funding mechanism.
Charter schools Added charter schools to the list of eligible TEOs. Amendments to the funding mechanism.
EFTS value Added a footnote to clarify that, for the purposes of assigning an EFTS value to a qualification for Youth Guarantee funding, 1.0 EFTS is equal to 120 credits (1,200 notional hours of learning and 34 full-time teaching weeks). Clarity.
Flexible funding Added Polytechnics and the New Zealand Institute of Skills and Technology and removed Te Pūkenga as qualifying TEOs. Legislative change.
NCEA co-requisite standards Added the NCEA literacy and numeracy co-requisite standards to eligible programmes. Amendments to the funding mechanism.
NCEA co-requisite standards Added a condition that TEOs must follow TEC guidance regarding reporting of programmes that include use of the NCEA co-requisite standards. Clarity.
Programme eligibility – face-to-face, synchronous, and asynchronous Added a condition allowing synchronous online delivery, without prior approval from TEC, where this is in the best interest of the learner or learners.
Added a condition that TEO must take into account “enabling access to education and the TEO’s capability to deliver effectively” when considering what “is in the best interest of the learner or learners” for online synchronous delivery.
Clarified that TEC approvals for asynchronous delivery are valid for multiple years unless revoked.		 Amendments to the funding mechanism.

Vocational and Non-degree Funds

DQ 3–7

Change subject Notes Reason
Assessment and verification Removed ‘award’ from the description of the ‘assessment and verification’ mode. Technical accuracy.
Changes to programmes and Micro-credentials Added the requirement that Industry Skills Boards, Polytechnics, and the New Zealand Institute of Skills and Technology get NZQA approval to make minor changes to programmes and micro-credentials. Legislative change.
Changes to programmes and Micro- credentials Replaced the requirement for TEOs to receive a notification of change from Workforce Development Councils with the requirement to receive a notice of change from Industry Skills Boards. Legislative change.
Embedded literacy and numeracy Clarified requirement to embed literacy and numeracy as part of work-based mode delivery at Level 3. Amendments to the funding mechanism.
Exceeding annual EFTS value of qualification Replaced ‘programme’ with ‘course’ and added Micro-credentials that lead to a qualification as part of the total EFTS factor for learner enrolments. Technical accuracy.
Fee regulation – polytechnic fees

Added for the purposes of fee limits the definition of:

  • ‘component course’
  • ‘corresponding course’; and
  • ‘corresponding polytechnic’.

Added new condition that allows polytechnics to revert back to previous fees.

 Amendments to the funding mechanism.
First-year Fees Free Removed paragraphs relating to the first-year Fees Free scheme and conditions no longer necessary for the administration of Fees Free. Amendments to the funding mechanism.
Flexible funding Added Polytechnics, the New Zealand Institute of Skills and Technology, Industry Skills Boards, and certain PTEs delivering work-based learning, and removed Te Pūkenga as qualifying TEOs for flexible funding. Legislative change, and decisions about qualifying TEOs for flexible funding in 2026.
Industry Skills Boards Added ‘Industry Skills Boards’ as eligible to receive funding to reflect changes to the Education and Training Act 2020. Amendments to the funding mechanism
Industry Skills Boards Replaced Workforce Development Council endorsement with Industry Skill Board endorsement (where appropriate) as a minimum requirement for programmes or micro-credentials delivered using DQ 3–7 funding. Legislative change.
Learner component Updated conditions to reflect new eligibility criteria for the learner component; low prior achievement and disability.
Removed paragraphs relating to specific performance expectations for Learner Component funding.
Simplified references to priorities and expectations for Learner Component funding.		 Amendments to the funding mechanism.
New Zealand Apprenticeships (NZA) Added a condition that you must report a programme as a NZA if it is approved as an apprenticeship. TEC expectations.
NZSCED and Occupation Code Added requirement to assign an Occupation Code to new or new versions of programmes delivered in work-based and assessment and verification delivery modes. Changes to TEC systems.
Overseas learners in Realm countries Added a condition to allow overseas learners to be funded if the learner is in Tokelau, the Cook Islands, or Niue in 2026 and enrolled in a programme funded in 2025 or earlier. Amendments to the funding mechanism.
Secondary Tertiary Alignment Resource (STAR) Added a condition that DQ3–7 funding must not be used in addition to STAR funding. Clarity.
Standard Training Measure (STM) Changed references to STM to EFTS. Amendments to the funding mechanism.
Refunding fees for Withdrawals Added a condition that if you're a registered PTE and need to refund fees, you must follow section 357 of the Education and Training Act 2020. Technical accuracy.
Work-based: pathway to work mode Removed references to the “work-based: pathway to work” mode of delivery. Amendments to the funding mechanism.

MPTT (Fees Top-ups and Brokerage Services)

Change subject Notes Reason
Repayment of funding (Fees Top-ups and Brokerage Services only) Removed reference to ‘unspent funding’ being counted as funding that is greater than it should have been. Technical accuracy and clarity.
Work-based: pathway to work mode (Fees Top-ups and Brokerage Services only) Removed references to the “work-based: pathway to work” mode of delivery. Amendments to the funding mechanism.
Industry Skills Boards (Consortium Activities only) Included local/regional needs identified by ‘Industry Skills Boards’ as a consideration for Consortia when setting participation targets. Amendments to the funding mechanisms.

Degree and Research Funds

DQ 7–10

Change subject Notes Reason
Exceeding annual EFTS value of qualification Added Micro-credentials that a learner is enrolled in that lead to a qualification as part of the total EFTS factor for learner enrolments. Technical accuracy.
Fee regulation – polytechnic fees Added for the purposes of fee limits the definition of: - ‘corresponding course’ and - ‘corresponding polytechnic’. Added new condition that allows polytechnics to revert back to previous fees. Amendments to the funding mechanism.
First-year Fees Free Removed paragraphs relating to the first-year Fees Free scheme and conditions no longer necessary for the administration of Fees Free. Amendments to the funding mechanism.
Flexible funding Added Polytechnics and the New Zealand Institute of Skills and Technology and removed Te Pūkenga as qualifying TEOs. Legislative change.
Investment Plan Learner Success and Disability Action Plan sections Shifted the conditions on Learner Success and Disability Action Plan sections to the Base Funding Conditions. Clarity.
Overseas learners in Realm countries Added a condition to allow overseas learners to be funded if the learner is in Tokelau, the Cook Islands, or Niue in 2026 and enrolled in a programme funded in 2025 or earlier. Amendments to the funding mechanism.
Refunding fees for Withdrawals Added a condition that if you're a registered PTE and need to refund fees, you must follow section 357 of the Education and Training Act 2020. Technical accuracy.