Individual providers are impacted to varying degrees by changing incentives to support the objectives of the vocational education reforms. Some are seeing an overall reduction and others an overall increase in funding. These changes are an important part of stimulating a shift to a strong, unified and sustainable vocational education system.

We recognise that some PTEs need time to transition from the previous funding system to the UFS, and to introduce new programmes or delivery options. Because of this, we are providing some PTEs with transitions funding.

This funding is focused on enabling strategically important provision to adapt to the new incentives offered by the UFS.

In 2024, we will again provide transitions funding for eligible PTEs that received this funding in 2023.

We assess the impact on individual PTEs based on their combined funding from the delivery and learner components only, but this does not exclude them from accessing the strategic component.

Priorities

The priorities for PTE transitions funding are:

• Future focused: Transitions funding contributes to the costs of transition to the UFS, not of retaining current business models.
• Transitionary: Funding is time-limited for 2023 and 2024 only.
• Strategic: The focus of this funding is on ensuring strategic provision that is regionally and nationally important can be sustained to transition to the UFS.
• Equitable impact: Funding considers the size of PTEs and their provision within the UFS, and their ability to respond.

2024 eligibility criteria and funding rate

Eligible PTEs will receive transitions funding for 2024 at a rate of half their 2023 transitions funding.

To be eligible for transitions funding, PTEs must:

• continue to face a significant (at least 10 percent) fall in funding for UFS provision, and
• continue to deliver either priority provision or niche provision.

Priority provision includes primary industries (agriculture, horticulture, apiculture, forestry), construction/trades, engineering, ICT (level 4 and above), early childhood education (ECE) (level 4 home-based care and level 5 kōhanga reo), hauora/whānau ora, health and care (level 4 and above).*

Niche provision means they are the only provider delivering a particular area of provision within the region or nationally.

Niche provision for transitions funding is determined through a combination of the geographical location that the particular area of provision is delivered in, and other provision regionally and nationally. Examples of niche provision include, but are not limited to: drama and screen production, legal studies, medical transcription, scene and costume construction, seafood processing, skydiving.

*ICT provision was added as priority provision in October 2022.

Timeframes and approach

PTEs that are eligible for transitions funding for 2024 will have this funding communicated to them as part of their indicative allocations, released in June 2023. Transitions funding will be paid to eligible PTEs in 12 equal monthly instalments.