Source: Tertiary Education Commission
A tertiary education organisation (TEO) can only use YG funding for New Zealand Qualifications and Credentials Framework (NZQCF) qualifications and their associated programmes and courses.
Before the Tertiary Education Commission (TEC) can consider funding a qualification, the TEO must first obtain approval and accreditation for a programme leading to the qualification from the New Zealand Qualifications Authority (NZQA). Once NZQA approval is obtained, the TEO may seek TEC funding approval.
To find a current list of qualifications and courses approved for YG funding for your organisation, use the qualification search or course search on the Services for Tertiary Education Organisations (STEO) application.
For the full programme eligibility requirements, see the Youth Guarantee funding conditions for the relevant year.
Minimum requirements
YG Fund funding provision should:
lead to the award of a qualification that is either NCEA at Level 1, 2 or 3; or another National or New Zealand Certificate at Level 1, 2 or 3 on the NZQCF
include literacy and numeracy provision
comprise part of a recognised pathway (as determined by NZQA) towards one or more vocational qualifications at Level 4 and above on the NZQCF
be aligned to the Vocational Pathways (if it leads to a Level 1 or 2 NCEA qualification)
be provided by tutors who are appropriately qualified.
For example, from 2023 0.5 EFTS means:
40 credits for a programme leading to a Level 1 or 2 qualification, and
60 credits for all other programmes.
For more information on Vocational Pathways and the list of standards in each pathway see Youth Guarantee.
Youth Guarantee delivery must be face-to-face (for example, not delivered via distance learning or in a work-based setting) unless we authorise you in writing to use an alternative delivery method.
Submitting a qualification for access to YG funding
Qualification and course approval is carried out through our section of the Data and Exchange Platform (DXP) Services for Tertiary Education Organisations (STEO) application. Through this application each TEO:
registers and maintains qualifications and courses for funding
updates qualification, course and delivery site details, and
submits its Single Data Return (SDR).
For technical information on using DXP STEO to obtain approval for qualification eligibility to access funding, see the STEO User Guide.
A TEO approved to receive YG funding may request to deliver alternative or additional qualifications to those listed in its Mix of Provision (MoP).
When submitting a new qualification for access to funding, we recommend that you:
consider whether it meets the eligibility criteria for YG funding;
consider whether it aligns with:
check on availability of funding, particularly if:
funding is being sought for Level 3
there will be a change in the type of delivery (trades/non-trades funding), or
delivery is being proposed at a new delivery site; and
complete external quality assurance body requirements in a timely manner (this will ensure that each student who is enrolled in the approved qualification will have timely access to student allowances and the Student Loan Scheme, if eligible).
Once we have received the necessary information, we will decide whether or not the qualification meets the eligibility requirements for YG funding. For the full eligibility requirements, see the Youth Guarantee funding conditions for the relevant year.
If we approve the qualification as eligible for funding, we will release your YG MoP, so you can revise and submit it to us for approval.
Process for approving a qualification for funding
Determining eligibility
To enable us to determine whether or not to approve a qualification as eligible to access YG funding, we require the following information when the qualification is submitted for approval through the DXP STEO application:
the provider code (EDUMIS number) of the TEO seeking the approval
the qualification code used on the New Zealand Qualifications and Credentials Framework (NZQCF)
the title of the proposed qualification
the number of learning hours per week
the number of full-time teaching weeks per year
the equivalent full-time student (EFTS) value of the qualification calculated using the following methods:
credits
learning hours
full-time weeks, and approval documents from the relevant quality assurance body.
When approving a qualification as eligible to access YG funding, we will:
check that the details of the programme leading to award of the qualification are consistent with your quality assurance approval for the programme
consider whether the EFTS value of the qualification is correct
check that the course, programme and/or qualification are eligible in accordance with the funding mechanism and/or funding conditions
consider whether eligible learners enrolled in the qualification will be able to access the Student Allowance/Student Loan Schemes, and
consider whether delivery of the qualification aligns with our investment priorities, what the stakeholder needs are, and the extent of existing similar provision.
We will not backdate approval for access to the Student Allowance/Student Loan Schemes. Therefore, we require this information from you at least four weeks before the start of tuition for the qualification. This will ensure that each learner who is enrolled in an approved course or programme can access financial support if eligible.
Enrolling learners in a newly approved qualification
You can start enrolling learners in the programme leading to the new qualification, and access funding, after the qualification has been:
listed in your YG MoP with regions of delivery and EFTS, and
we have approved your MoP for funding.
A detailed description of the required information is set out below.
TEO/provider code
You must give us the four-digit code assigned by the Ministry of Education to uniquely identify your TEO. A list of the four-digit codes assigned to each TEO is set out in Appendix 1 of the SDR Manual.
Qualification code
You must supply the qualification code. The format of the qualification code is alphanumeric, usually two letters followed by four numbers. Select the New Zealand Certificate/Diploma from the National Qualification List on the DXP STEO application.
If you intend to offer a New Zealand Certificate listed on the NZQCF, use the NZQCF code for the qualification for all references to the qualification.
A TEO can submit its New Zealand Qualifications Authority (NZQA) approval for one programme that leads to a New Zealand qualification in STEO. When additional programmes are approved by NZQA that lead to the same New Zealand qualification, you must send the approval to the TEC so we can agree to the delivery (do not submit the documentation through STEO). Programmes leading to New Zealand qualifications should not be submitted under a local/provider code in this situation.
Qualification codes for trades and non-trades (and NCEA)
If you have NZQA programme approval for a trade programme and a non-trade programme for the same qualification (ie, one learner is enrolled on 50% of P1, C1, L1 courses while another is enrolled on 50% A1, J1), you need to set up two separate local qualification codes to reflect these different programmes.Only qualifications at Levels 2 and 3 can be funded at the trade rate.
Note: Where the qualification will only be delivered as either trade or non-trade, you only need to set up the relevant qualification code.
A TEO approved by NZQA to deliver the National Certificate of Educational Achievement (NCEA) Level 2 with a Vocational Pathway needs to set this up in STEO using the qualification codes below.
Code
Title
Level
Description
NCEAL1
National Certificate in Educational Achievement L1
L01
YG Non-Trades
NCEP1T
Construction and Infrastructure Trade L2
L02
YG Trades
NCEP1N
Construction and Infrastructure Non-trade L2
L02
YG Non-Trades
NCEP2T
Manufacturing and Technology Trade L2
L02
YG Trades
NCEP2N
Manufacturing and Technology Non-trade L2
L02
YG Non-Trades
NCEP3T
Primary Industries Trade L2
L02
YG Trades
NCEP3N
Primary Industries Non-trade L2
L02
YG Non-Trades
NCEP4T
Service Industries Trade L2
L02
YG Trades
NCEP4N
Service Industries Non-trade L2
L02
YG Non-Trades
NCEP5T
Social and Community Services Trade L2
L02
YG Trades
NCEP5N
Social and Community Services Non-trade L2
L02
YG Non-Trades
NCEP6T
Creative Industries Trade L2
L02
YG Trades
NCEP6N
Creative Industries Non-trade L2
L02
YG Non-Trades
NCEA3T
National Certificate in Educational Achievement Trade L3
L03
YG Trades
NCEA3N
National Certificate in Educational Achievement Non-trade L3
L03
YG Non-Trades
Use the qualification code system below to enter the trade/non-trade codes in STEO.
“C” represents a National Certificate, whereas “Z” represents a New Zealand Certificate.
This is followed by the four-digit NZQCF code for the qualification.
This is followed by “T” identifying it as a trade programme (50% or more of the provision is trades), or “N” identifying it as a non-trade programme (50% or more of the provision is non-trades).
Code
Title
Level
Description
CxxxxT
National Certificate in Xxxxx Level 3
L03
YG Trades
CxxxxN
National Certificate in Xxxxx Level 3
L03
YG Non-Trades
ZxxxxT
New Zealand Certificate in Xxxxx Level 3
L03
YG Trades
ZxxxxN
New Zealand Certificate in Xxxxx Level 3
L03
YG Non-Trades
Title of qualification
You must give us the title of the qualification(s) for which you are seeking approval for funding.
This does not mean the title of the programme that NZQA approved, unless the programme title and qualification title are the same.
Duration
You must provide us with information about the duration of the programme, specifically the learning hours and full-time teaching weeks as approved by NZQA.
Learning hours
NZQA defines “learning hours” as all planned learning activities leading towards the achievement of programme or qualification learning outcomes.
Types of learning activities include but are not limited to:
lecturer and tutor contact hours, including workshops and tutorials
tests and assignments
supervised practical placements
study time
self-directed learning activities that you expect the student to engage with/participate in, and
examination periods.
There are three fields for types of learning activities on the DXP STEO application. A TEO should break down its various learning activities, and enter hours in the STEO fields below as accurately as possible, based on the guidance below. The three fields are:
teaching hours each week – eg, face-to-face classroom/online/field trip/simulation time, tutorials, on-site assignments, assessments and examinations
work experience hours each week – eg, time the learner spends practising or learning skills relevant to their study programme in a workplace; this includes a teaching workplace, which may be on-site, as long as it operates as a commercial enterprise, and
self-directed study hours each week – “self-directed study” means only TEO-directed study carried out by the learner; eg, time the learner spends on off-site assignments (such as homework assignments), and TEO-directed reading and study hours, that the learner must complete in their own time. Note: self-directed study does not include self-directed activities that the learner initiates.
Note: A TEO will need to use a consistently applied rationale, in terms of which activities constitute what programme learning hours in STEO for each of the three fields above.
In relation to the number of learning hours in the qualification, you must give us the:
number of teaching hours each week (see above)
number of hours each week of work experience (see above)
number of self-directed learning hours each week (see above)
total number of learning hours each week
total number of learning hours in each year
number of years it will take to complete the qualification, and
total number of learning hours in the qualification (number of learning hours in each year multiplied by the number of years).
Total learning hours in STEO must be the same as the total programme/qualification learning hours approved by NZQA. We expect actual delivery to align with the total learning hours and the learning activities approved by NZQA. This means we expect each TEO to regularly review the delivery of its programme(s) to ensure they are “right sized” for most learners (recognising that some learners take more or fewer learning hours to achieve a qualification than others).
Note: During audits and investigations we may check whether a TEO’s delivery reflects our and NZQA’s approvals. To do this we triangulate NZQA approval documentation, STEO data, and your information for learners, and compare the information to actual delivery.
Full-time teaching weeks
A full-time teaching week includes the types of learning hours outlined above.
In relation to the number of teaching weeks in each year of the qualification, you must give us the:
number of full-time equivalent teaching weeks
number of weeks of recess in each year
total number of full-time teaching weeks and recess weeks in each year – FTE gross
number of credits on the NZQCF contained in the qualification, and
number of credits that a learner must achieve each year to complete the qualification.
We generally will not approve a qualification for funding that is longer than 34 weeks in a year.
You must not enrol a learner in more than:
1.5 EFTS (120 credits) of Level 1 and/or 2 YG qualification provision in any year, or
1.0 EFTS (120 credits) of Level 3 YG qualification provision in any calendar year.
EFTS value of the qualification
We require the EFTS value of each qualification in order to determine whether a qualification is eligible to access YG funding.
For conditions on assigning EFTS values to qualifications, see YG funding conditions.
The EFTS value of each qualification must be specified to no more than four decimal places. The EFTS value determines the workload involved in each qualification and is required so that we can appropriately fund you to deliver the qualification.
For the purposes of STEO, MoPs and SDR reporting, the EFTS value is calculated using 120 credits per EFTS for all Level 1–3 qualifications (the standard number of credits that equate to one full-time year of study).
This information must be determined using the following methods:
credits,
learning hours, and
full-time weeks.
Each of the three methods should produce the same result. If they do, we can be confident that a student who is studying for a qualification is undertaking a normal and reasonable workload.
Each method is set out in more detail below.
Credits
A credit measures the average amount of learning that is required to complete the qualification or part of the qualification.
The EFTS value can be calculated using the credits method by dividing the number of credits for the qualification by 120 (the standard number of credits that equate to one full-time year of study in STEO).
Example: If a qualification has 60 credits: 60 divided by 120 = 0.5 EFTS.
Learning hours
The EFTS value can be calculated using the learning hours method by dividing the qualification’s total learning hours by 1,200 (the standard number of learning hours that equates to a full-time year of study).
Example: If the total learning hours for one semester in a qualification is 600 hours: 600 divided by 1,200 = 0.5 EFTS.
Full-time weeks
The EFTS value can be calculated using the full-time weeks method, by dividing the length of tuition for the qualification in weeks by 34 (the standard number of weeks that equate to one full-time equivalent teaching or tuition year).
Example: If the qualification has a length of 17 weeks: 17 divided by 34 = 0.5 EFTS.
EFTS value when a qualification has strands
A qualification may have a range of options or electives with variable credit combinations. These are called strands. Each strand is likely to have a different total EFTS value.
If a qualification has two or more strands, you should determine the EFTS value for each strand. We require the EFTS value of the strand that has the highest EFTS value for our calculations.
You must calculate the EFTS factor of each course in the strand in order to calculate the EFTS value of the strand. The EFTS factor of a course can be determined in the following ways:
Divide the course credits for a qualification that has up to 120 credits by 120.
For a qualification that has more than 120 credits, and we have agreed to fund more than 1 EFTS per student per year, divide the course credits by the credit value of the qualification.
For a qualification that has more than 120 credits, and we have not agreed to fund more than 1 EFTS per student per year, divide the course credits by 120.
Example:
Calculating the EFTS value of a qualification with strands
Strand 1
Credits
Course EFTS factor
Strand 2
Credits
Course EFTS factor
Course 1
15
0.1250
Course 1
15
0.1250
Course 2
15
0.1250
Course 2
15
0.1250
Course 3
26
0.2167
Course 3
26
0.2167
Course 4
10
0.0833
Course 6
10
0.0833
Course 5
6
0.0500
Course 7
5
0.0417
Course 8
4
0.0333
Totals
72
0.6000
75
0.6250
In this example, if we approve the qualification for funding, it will be approved as 75 credits as this is the credit value of the longest strand. The EFTS value of the qualification is therefore 0.625 (75 credits/120 = 0.625 EFTS).
If an approved qualification in STEO has a value of 1.0 EFTS but more than 120 credits, the credit value of the longest strand is used to determine the course EFTS factor for each strand. This ensures that courses common to both strands have the same EFTS factor.
Example: In this example, the credit value of 150 is used to divide the credits, not 120:
Calculating course EFTS factors in a qualification of more than 120 credits in one year with strands
Strand 1
Credits
Course EFTS factor
Strand 2
Credits
Course EFTS factor
Course 1
30
0.2000
Course 1
30
0.2000
Course 2
30
0.2000
Course 2
30
0.2000
Course 3
52
0.3467
Course 3
52
0.3467
Course 4
20
0.1333
Course 6
20
0.1333
Course 5
12
0.0800
Course 7
10
0.0667
Course 8
8
0.0533
Totals
144
0.9600
150
1.0000
Quality assurance requirements
To be eligible for YG funding, a course must be part of a programme that has been quality assured. For TEOs that receive YG funding, the quality assurance body is the New Zealand Qualifications Authority (NZQA).
To determine whether to approve a qualification for Youth Guarantee funding as part of your MoP, we require evidence in your Investment Plan that NZQA has approved the programme leading to the award of the qualification.
Under Section 101 of the Education and Training Act 2020, the New Zealand Teachers Council is responsible for conducting, in conjunction with quality assurance agencies, approvals of teacher education programmes and qualifications that lead to teacher registration.
Defining a qualification
You must give us the following information that defines the qualification:
the award category code (recognised qualifications have an award qualification category code – refer to Appendix 9 of the SDR Manual)
the International Standard Classification of Education (ISCED) Level, and the ISCED code of the qualification (refer to Appendix 9 of the SDR Manual)
the level of the qualification on the NZQCF (refer to Appendix 9 of the SDR Manual)
the outcome (ISCED destination) of completing the qualification (for example, whether the qualification is designed to lead the learner directly into the labour market), and
the New Zealand Standard Classification of Education (NZSCED) of the qualification (refer to Appendix 8 of the SDR Manual).
Making a change to a programme leading to the qualification
To make a change to a programme leading to a qualification, you must first check with NZQA if their approval is required for the change.
Once you have the required approval, you need to reflect the changes in STEO. In doing that, you must meet the requirements of any conditions on making changes to qualifications.
For conditions on making changes to qualifications, see the YG funding conditions.
Information about courses
NZQA approves a programme leading to a qualification, and the TEO then submits the qualification to us through STEO for approval as eligible to access YG funding. We may then agree to fund the qualification.
Following that, the TEO must disaggregate the qualification into component courses in STEO. You must give us all of the following information about each component course in the qualification:
provider code
course code
course title
qualification code
delivery classification
NZSCED field of study
level of the course on the NZQCF
number of credits of the course
funding category of the course
EFTS factor of the course, and
whether the course has embedded literacy and numeracy skill development in the provision.
Some of the key fields required for SDR submission are outlined in more detail below.
Delivery classification (CLASS)
You are required to classify your courses using the current Delivery Classification Guide.
New Zealand Standard Classification of Education (NZSCED)
The NZSCED is a subject-based classification system that contributes to international reporting, and in some cases may be used to describe the Mix of Provision in your Investment Plan.
All courses must be classified using the NZSCED classifications on a “best fit” basis according to their predominant subject matter. This means that the chosen NZSCED classification reflects the largest part of a course’s subject matter.
A full list of NZSCED classifications is provided in the SDR Manual Appendices.
For more information on NZSCED classifications, see New Zealand Standard Classification of Education – Education Counts.
Funding category (CATEGORY)
The funding category includes:
an alphabetic code that relates to the delivery classification, and
a numeric code that reflects the level of study.
Alphabetic code
The alphabetic code (based on delivery classification) is used to record YG funded course subjects. It is also used to determine DQ7+ funding but not Youth Guarantee funding. The alphabetic code can be found in Table 2, Appendix 1 of the Delivery at Levels 7 (degree) and above on the New Zealand Qualifications and Credentials Framework (DQ7+) Funding Mechanism.
Numeric code
For YG courses the numeric category will always be 1, as set out in the table below.
Category (numeric code)
Classification by level and content of study
1
Courses designed for non-degree qualifications with no research requirement, including certificates and diplomas
EFTS factor of courses (FACTOR)
The EFTS factor of a course equates to the course size that is a portion of the total EFTS value of the programme leading to award of the qualification of which the course is part. In DXP STEO, the field name is “Qualification” (which means programme leading to award of the qualification).
As a guideline, we recommend that the size of the smallest course should not have an EFTS factor of less than 0.1.
Although you may choose to deliver a smaller course, if the course is based on a single unit standard and has a course EFTS factor of less than 0.1, we do not require you to further disaggregate the course in STEO.
You may report delivery for one qualification as one course. However, that means that a learner can only enrol in the one course (ie, the whole programme) leading to award of the qualification.
After a programme has been disaggregated into courses and we have approved these as eligible for access to YG funding, you cannot retrospectively disaggregate the programme further.
For the purposes of STEO, MoPs and SDR reporting, EFTS factors are calculated using 120 credits per EFTS for all Youth Guarantee provision (the standard number of credits that equate to one full-time year of study).
Calculation
If a qualification is measured in credits, we require the EFTS factor of a course to be calculated by:
dividing the number of credits in the course by the total number of credits in the qualification, and
multiplying that number by the EFTS value of the qualification.
The EFTS factor must be expressed to four decimal places.
Example: If a qualification has a total of 60 credits and an EFTS value of 0.5, the EFTS factors of the courses in the qualification are calculated as:
Courses
Credits
Qualification EFTS value
Course EFTS factor
1
24
0.5
24/60 x 0.5 = 0.2000
2
20
0.5
20/60 x 0.5 = 0.1667
3
16
0.5
16/60 x 0.5 = 0.1333
Credits = 60
EFTS value = 0.5
Embedded literacy and numeracy flag (EMB LIT NUM)
You must indicate whether the course includes embedded literacy and/or numeracy provision.
A course with embedded literacy and numeracy provision will deliver deliberate teaching of literacy and numeracy skills and will be part of a programme that has:
explicit literacy and numeracy statements, such as learning outcomes or teaching and learning statements within programme or course information
a literacy and numeracy diagnostic assessment for each learner, and
assessment of each student’s progress in literacy and numeracy skill development.
Closing a qualification
You can remove a qualification that you no longer offer from your MoP and close it from DXP STEO. This removes the qualification from your list of active qualifications and the NZQA Register of Quality Assured Qualifications.
The process can be found on the STEO application.
Tertiary education organisation (TEO) eligibility
To receive Youth Guarantee (YG) Fund funding, you must continue to be:
Te Pūkenga – New Zealand Institute of Skills and Technology (Te Pūkenga); or
a wānanga; or
a private training establishment (PTE); or
a State or State-integrated school that has been funded by us for YG provision since 2011.
See the YG funding conditions from the relevant year for the full TEO eligibility requirements.
Funding conditions by year
Programme eligibility
See the YG funding conditions from the relevant year for the full programme eligibility requirements.
Funding conditions by year
Minimum requirements
YG Fund provision should:
lead to the award of a qualification that is either NCEA at Level 1, 2 or 3; or another National or New Zealand Certificate at Level 1, 2 or 3 on the New Zealand Qualifications and Credentials Framework (NZQCF)
include literacy and numeracy provision
comprise part of a recognised pathway (as determined by the New Zealand Qualifications Authority [NZQA]) towards one or more vocational qualifications at Level 4 and above on the NZQCF
be aligned to the Vocational pathways (if it leads to a Level 1 or 2 NCEA qualification)
be provided by tutors who are appropriately qualified.
From 2023 0.5 EFTS means:
40 credits for a programme leading to a Level 1 or 2 qualification, and
60 credits for all other programmes.
For more information on Vocational Pathways and the list of standards in each pathway see Youth Guarantee.
Youth Guarantee delivery must be face-to-face (for example, not delivered via distance learning or in a work-based setting) unless we authorise you in writing to use an alternative delivery method.
Learner eligibility
See the YG funding conditions from the relevant year for the full learner eligibility requirements.
Funding conditions by year
Learners must not be simultaneously enrolled in school and a Youth Guarantee funded qualification.
Learners must not be enrolled in a Youth Guarantee funded qualification and also be enrolled in another TEC-funded programme at the same time, eg, Intensive Literacy and Numeracy (ILN), Delivery at Levels 1 and 2 on the New Zealand Qualifications and Credentials Framework (DQ1-2), New Zealand Apprenticeship or Gateway.
A learner that is eligible for ILN-funded programmes is not considered to have the necessary literacy and numeracy skills to be successful in a Youth Guarantee programme.
Limit on qualification prior achievement
Qualification prior achievement limits are to ensure that government funding is targeted to learners with no or low qualification prior achievement, and to enable learners to pathway to higher level qualifications.
In practice this means:
a new enrolment is the first time that learner has been enrolled in Youth Guarantee at that TEO, and
the TEO must verify individual learners’ prior achievement before accepting them into the programme.
Level 1 and 2 programmes
TEOs must ensure that learners who already hold a qualification at Level 1 or 2 on the NZQF comprise no more than 10% of new enrolments in a Youth Guarantee programme leading to award of a qualification at that level.
Learner holds a qualification at …
And enrols in a qualification at …
Learner will be included in the 10% prior achievement calculation in each year of delivery
Level 1
Level 1
Yes
Level 2
Level 2
Yes
Level 1
Level 2
No
A learner enrolment in a subsequent Youth Guarantee qualification at the same TEO at any level is not considered a ‘new enrolment’.
Level 3 programmes
To meet the learner eligibility requirements the TEO must:
not enrol a learner in a Youth Guarantee programme if the learner has already achieved a qualification at Level 3 or above on the NZQF, and
prioritise enrolments in Youth Guarantee programmes that lead to award of a level 3 qualification on the NZQF to:
learners who enrolled in Youth Guarantee with low prior achievement (no qualification or a Level 1 qualification), and
learners who have completed a Level 1 or 2 qualification funded through Youth Guarantee.
Age limit for learners
Learners may be re-enrolled in Youth Guarantee, as long as they continue to meet the learner eligibility conditions, including enrolling in no more than 1.5 EFTS provision per calendar year.
Some learners may turn 25 years old during a programme they are enrolled in. These learners remain eligible for Youth Guarantee for the courses required to complete their qualification.
Youth Guarantee funding is not available for learners who have already turned 25 years old to re-enrol in courses they did not successfully complete. Keep this in mind when you enrol a learner who is close to turning 25 years of age, as any re-enrolments in qualifications or courses will need to be self-funded by the learner or from DQ1-2/Delivery at Levels 3–7 (non-degree) on the New Zealand Qualifications and Credentials Framework and all industry training (DQ3-7) Funds funding.
