Direct Funding Scheme

Direct Funding Scheme

Last updated 1 November 2016
Last updated 1 November 2016

The Industry Training Fund Direct Funding Scheme (the scheme) allows employers, groups of employers, Group Training Schemes, and current Modern Apprenticeship Coordinators – all with large numbers of trainees – to apply for access to the Industry Training Fund directly.

The Industry Training Fund supports industry training, which provides formal, structured employment-based training that leads to qualifications, predominantly at levels 1 to 4 on the New Zealand Qualifications Framework.

The scheme aims to improve educational participation and achievement, as well as drive performance and innovation, by encouraging competition in the provision of industry training.

Employers wanting to access the Industry Training Fund through the scheme need to partner with a tertiary education organisation. The tertiary education organisation facilitates the delivery of the training and the assessment of learning.

Future applications

Now that the implementation phase has drawn to a close, we are considering how the scheme might operate more effectively. Until any changes are finalised, we are not accepting new applications.

We are happy to contact you when the scheme is open for new applications. If you would like to be contacted, please email or phone the Customer Contact Group on 0800 601 301.

Phased implementation

Cabinet agreed that the Direct Funding Scheme would be introduced with a limited number of organisations to test implementation issues before opening up the scheme more widely.

The objectives of the phased implementation (2014–2015) were to:   

  • test the market of employers and other organisations to gauge their interest in and assess their ability to meet the requirements for access to the Industry Training Fund
  • learn about implementation issues with the selected number of non-industry training organisations accessing the Industry Training Fund.

Evaluation of implementation

We have evaluated the scheme's implementation. The key findings were that:

  • tailored and flexible support for employers is important
  • the costs of reporting training information to TEC are significant
  • current funding and accountability requirements are very complex
  • the scheme is more viable with large numbers of trainees.

 Read the key findings from the DFS Phase One Evaluation.