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Introduction to the Unified Funding System

The Unified Funding System (UFS) funds the delivery of vocational education and training that is focused on learners, supports employers, and addresses national and regional skill priorities.

In December 2021, Cabinet approved the design of the UFS for vocational education and training (VET). The UFS unifies funding for provider-based study at levels 3 to 7 (non-degree) and for all industry training.

The UFS has been operational since 1 January 2023.

The Cabinet paper and the policy papers supporting the high-level design of the UFS, prepared by the Ministry of Education and supported by the Tertiary Education Commission, are available on Advice seen by the Minister of Education about the UFS. These include briefing notes, education reports and the final Cabinet paper.

The way we define VET under UFS is outlined in Definition of VET for UFS.

Strategic intent of UFS

The intent of our funding system is to put the needs of learners at the centre to ensure they can access training that is right for them, at the right time and in the right place.

Funding is designed to encourage providers to make more relevant and quality work-based training options available for learners and employers. It provides funding for improved support for learners and employers and their businesses. It also aims to address national and regional skills priorities to better support our economy and communities.

The increased funding to support learners comes with higher expectations of tertiary education organisations (TEOs) to support greater success for learners, employers and their communities.

The UFS has three components: learner component, delivery component and strategic component.

Diagram of the Unified Funding System