Introduction to the Unified Funding System (UFS)

Introduction to the Unified Funding System (UFS)

Last updated 29 November 2022
Last updated 29 November 2022

The new Unified Funding System (UFS) will fund the delivery of vocational education and training that is focused on learners, supports employers, and addresses national and regional skill priorities.

In December 2021, Cabinet approved the design of a new UFS for vocational education and training (VET). The UFS is an essential element of the Reform of Vocational Education (RoVE). It will unify funding for provider-based study at levels 3 to 7 (non-degree) and for all industry training.

The transition to the new system will start from January 2023.

The Cabinet paper and the policy papers supporting the high-level design of the UFS, prepared by the Ministry of Education and supported by the Tertiary Education Commission, are available on Advice seen by the Minister of Education about the UFS. These include briefing notes, education reports and the final Cabinet paper.

The way we define VET under UFS is outlined in Definition of VET for UFS.

Strategic intent of UFS

The intent of our funding system is to put the needs of learners at the centre to ensure they can access training that is right for them, at the right time and in the right place.

Funding is designed to encourage providers to make more relevant and quality work-based training options available for learners and employers. It provides funding for improved support for learners and employers and their businesses. It also aims to address national and regional skills priorities to better support our economy and communities.

The increased funding to support learners comes with higher expectations of tertiary education organisations (TEOs) to support greater success for learners, employers and their communities.

The UFS has three components: learner componentdelivery component and strategic component.

Diagram of the Unified Funding System

Find out more about the data and tools to support the UFS

UFS news articles

November 2022: UFS funding boost for PTE sector

October 2022: Good progress on a common unit of funding

September 2022: Progress on tuition subsidy exemptions

September 2022: Next step for UFS funding determinations and funding conditions

August 2022: Update on tuition subsidy exemptions for migrant workers

August 2022: Draft 2023 UFS funding conditions

July 2022: TEC launches 2023 PTE Strategic Fund

June 2022: TEOs receive indicative funding allocations for 2023

May 2022: Minister’s Budget 22 announcement

May 2022: New funding rates for vocational education support learners, incentivise work-based delivery

Feb 2022: UFS data exchange: getting ready for 2023

Dec 2021: The design of a new single UFS has been approved

Nov 2021: Online engagement on the UFS system ends

Oct 2021: Online engagement on the Unified Funding System ‘Funding Category Component – Modes of Delivery’ goes live during October

Jul 2021: Creating the detail on our modes of delivery in the new Unified Funding System (UFS)