The learner component is one of three funding components in the new unified funding system (UFS) for vocational education and training. For information on the other two, see strategic component and delivery component.

About the learner component

The learner component substantially increases funding to providers that is targeted at supporting all learners, particularly those who traditionally have not been well served by the education system. It recognises that there are higher costs involved in adapting education delivery and support to meet learners’ unique needs. The learner component is intended to support Tertiary Education Organisations (TEOs) to put learners at the centre of their organisations and to improve outcomes for learners.

How will the learner component be calculated?

Learner component funding will be calculated based on the enrolments of four groups of learners who traditionally have not been well served by the VET system. It will apply to learners in all modes of delivery (of the delivery component) aside from assessment and verification.

Which learners traditionally have not been well served?  

We have identified four groups for whom the system has not previously worked as well as it could. These groups are:

• learners with low prior achievement
• disabled learners
• Māori learners
• Pacific learners.

These groups serve as a proxy for learners who need additional support to be successful in VET – in other words, a way to allocate funding across the VET system in a reasonably straightforward way. This does not mean that funding should only be used for learners in these four groups. Instead, providers will be expected to identify the unique needs of all their learners, make decisions about how to support them, and allocate funding accordingly.

How will TEOs know what TEC expects them to do to support their learners?

TEC will identify and set performance expectations for how TEOs support their learners’ success. The performance expectations will be relevant and tailored to each TEO and the needs of their learner populations. This will be part of the TEO’s annual investment plan process within a TEO’s learner success plan, where appropriate.

An incentive payment will be paid to each TEO on achieving the performance expectations set by TEC. Performance expectations will be a combination of quantitative and qualitative measures and milestones, with an initial focus on organisational capability-building.

Incentive payments will be introduced over time, with an initial focus on TEOs with significant levels of Learner Component Funding and with a requirement for learner success plans.

How do TEOs apply for the learner component funding?

TEOs won’t need to apply for learner component funding. It will be allocated as part of TEOs’ overall funding for VET.

We expect the funding rates will be released in May 2022.

This will include further information on learner component rates. Related performance expectations will be communicated as part of the plan process for 2023 funding.

Learner component Q&As