It replaced Student Achievement Component (SAC) funding for Levels 3–7 (non-degree) and all funding from the Industry Training Fund.

The delivery component is one of three funding components in the Unified Funding System (UFS) for vocational education and training. For information on the other two, see:

• Learner component
• Strategic component

How is funding calculated?

Funding is allocated for all education and training at Levels 3–7 (non-degree) and all industry training based on the subject, how delivery occurs (mode of delivery), and the amount of learning (common across all modes). See below for more information on these three key factors.

Subject

There are six subject-rate groupings, which apply to both provider-based and work-based learning. Different funding for different subjects for work-based learning recognises the different cost structures of different types of training. The groupings are:

• humanities, business and social service vocations
• trades, creative arts, information technology and health-related professions
• agriculture, engineering, health sciences and science
• pilot training and priority engineering
• foreign-going nautical and specialist agriculture
• te reo and tikanga Māori.

Mode of delivery

There are five modes of delivery that reflect where and how a learner is receiving learning. A programme can be made up of one or more modes. This is to allow learners and employers to access learning opportunities in the way that is best for them and to move seamlessly between ways of learning. The five modes are:

• provider-based
• provider-based: extramural
• work-based
• work-based: pathway to work
• assessment and verification.

Read more about the modes of delivery.

Amount of learning

We will continue to use equivalent full-time students (EFTS) and standard training measures (STMs) to link funding to learning undertaken.

We are currently developing a new shared unit of funding across industry training and provider-based study. We will work closely with the sector to ensure this is workable, understandable and fair.

What does the delivery component support?

The delivery component supports the delivery of education and training in all settings, including at providers and workplaces.

Who is eligible for funding under the delivery component?

We are making learners’ eligibility for tuition subsidies consistent across all of the UFS. The current provider-based eligibility rules will apply to all learners. For other modes, this means there will be two key changes to eligibility.

The two changes are:

• Adding the self-employed, contractors and volunteers: We are extending funding for work-based training beyond employees to include others in the workplace, such as the self-employed, contractors and volunteers. This aligns with the Reform of Vocational Education outcomes by promoting flexible and ongoing lifelong learning.
• A domestic focus: We are removing eligibility for training subsidies for legally employed individuals who are not citizens, residence class visa holders, or otherwise classified as domestic tertiary students. Employers can still access training for these individuals but the cost of this training is no longer government-subsidised. This change aligns with the current approach to immigration, incentivising employers to develop local workforces before seeking to source labour from overseas.

Some international learners are eligible for funding for work-based learning in specific training areas. Further information is available at Accredited Employer Work Visa (AEWV) holders – Funding eligibility.

Mātauranga and Te Reo Māori

The UFS covers all provision at Levels 3–7 and all industry training, which includes Mātauranga and Te Reo Māori.

Relevant information

• Delivery component frequently asked questions (FAQ)
• Funding rates by year
• UFS funding categories and delivery classifications
• Delivery Classification Guide