Performance-linked funding

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Last updated 7 November 2018
Last updated 7 November 2018

Performance-linked funding is being discontinued.

From 2018 onwards, we will discontinue the performance-linked funding (PLF) policy.

PLF was not applied to 2018 funding, and the decision has now been made to discontinue PLF altogether. 

PLF was a formula-based approach intended to encourage all Student Achievement Component (SAC) funded tertiary education organisations (TEOs) to reach an acceptable standard of educational performance. It based 5 percent of a TEO’s funding on its performance in previous years against up to four educational performance indicators (EPIs):

  • course completion
  • qualification completion
  • first year retention
  • progression.

We will continue to use a range of levers to encourage better educational performance, and to address poor performance. This includes continuing to monitor and publish EPIs on students' achievement and data on their post-study outcomes.

We continue take a more sophisticated approach to measure and manage sector performance and actively invest in programmes that we know contribute to lifting learner achievement.

For more information on our approach to lifting learner achievement see Plan Guidance.