In changing the incentives to support the objectives of the vocational education reforms, individual providers will be impacted to varying degrees. Some will see 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.

Recognising that it may take time for some individual PTEs to transition from the previous funding  system to the UFS, that is, by introducing new programmes or delivery options, we will provide some PTEs with transitions funding.

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

The impact on individual PTEs is assessed based on their combined funding from the delivery and learner components only but 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.

Criteria

• Priority provision – 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/whanau ora, health and care (level 4 and above).*
• Niche provision – 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. Some examples of niche provision, but not limited to, are: 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 who are eligible for transitions funding for 2023 will have this funding communicated to them as part of their indicative allocations, released in June 2022.

Transitions funding will be available for 2023 and 2024 and will be paid in 12 equal monthly instalments. The amount available in 2024 will be less than in 2023.