Summary

Student Achievement Component (SAC) ($1,909 million in 2010)

• Total SAC funding has increased in real terms between 2006 and 2010. This has been driven by a moderate increase in the number of funded equivalent full-time students (EFTS) and increases in funding rates.
• Actual delivered EFTS increased by just 0.9 percent in 2010, with over-delivery in the system dropping to 4.4 percent in 2010, compared with 5.1 percent in 2009.
• The value of successful course-level study  increased in 2010 due to a mix of continued over-delivery and the improvement in the percentage of successful course-level study.
• The five-year completion rate of students who studied SAC-funded qualifications on a full-time basis continued to increase in 2010.
• Between 2006 and 2010, an increasing proportion of SAC-funded qualifications awarded were to students aged under 25 and studying at level 4 or higher. The proportion of Māori or Pasifika students completing SAC-funded qualifications at level 4 or higher dropped slightly in 2010.

People with tertiary qualifications continued to enjoy higher earnings premiums and a higher likelihood of employment than people with school-level or no qualifications.

Performance-Based Research Fund (PBRF) ($250 million in 2010)

• There was a substantial increase in PBRF funding (including research top-ups) between 2006 and 2010 in real terms.
• Although dropping slightly in 2010, the amount of external research income earned per staff member is significantly higher than in 2006.
• The volume of research degree completions per staff member has continued to rise over time.
• Postgraduate qualification completion rates have continued to improve.
• The rate of citation of indexed publications by authors from New Zealand tertiary education institutions has improved over time.

Industry Training Fund ($148 million in 2010)

• In 2010, there was a decrease in the Industry Training Fund of 7.4 percent in real terms. This was driven by a decrease in standard training measure (STM) load of 16 percent in 2010. This fall was largely as a result of audits of ITOs that removed inactive trainees, but also reflects some recession effects.
• The credit attainment rate of trainees increased significantly in 2010 to reach 60 percent. The removal of inactive trainees following the audit of a number of ITOs in 2010 was one factor helping drive the improvement in this figure.
• Programme and qualification completion rates have generally increased between 2006 and 2010.
• People with the type of vocational qualifications gained in industry training continued to have an earnings and employment advantage over people with school or no qualifications.
• The earnings gain from participation in industry training was greatest for young trainees, and especially for those whose training is at level 4 or higher.

Modern Apprenticeships ($42 million in 2010)

• In 2010, the amount of funding allocated to Modern Apprenticeships decreased by 5.8 percent in real terms. This was due to a decrease in STM load of 4 percent.
• The number of new trainees starting a Modern Apprenticeship declined sharply in 2009 and 2010, reflecting the impact of the recession.
• The credit attainment rate increased significantly in 2010 to reach 85 percent. This is well above the attainment rate of 62 percent reported in 2008.
• The completion rate of programmes and qualifications has generally exhibited an increasing trend over time.
• Among the younger population, there was a significant employment advantage and generally an earnings advantage for those with tertiary qualifications compared with those people with school or no qualifications.

Training Opportunities ($78 million in 2010)

• Total funding allocated to Training Opportunities decreased in real terms between 2006 and 2010. The number of placements has also decreased, as the employment market has changed and as the criteria for acceptance into the programme have changed.
• The number of credits attained rose significantly in 2010. The number of credits attained per $1,000 of real government expenditure also increased significantly in 2010.
• The two-month post-study outcomes have seen the proportion of trainees who do not find employment or undergo further training remain relatively constant at around 30 percent. However, with the onset of the recession there has been a decrease in the proportion of trainees in employment and an increase in the proportion of trainees in further training.

Youth Training ($54 million in 2010)

• Total funding allocated to Youth Training fell in real terms between 2006 and 2010. This was due to a fall in the number of participants in Youth Training.
• The number of credits attained increased in 2010 for the second year running. The number of credits per training week also increased in 2010.
• The number of credits attained per $1,000 of real government expenditure increased in 2010.
• Between 2006 and 2010, the proportion of trainees not in further study or in employment two months post study has remained relatively constant at around 25 percent. However, with the onset of the recession in 2009, there has been a fall in the number of placements resulting in employment, while the number of placements resulting in further study has increased.

Student loans and student allowances ($1,551 million allocated to student loans (new lending) and $609 million allocated to student allowances in 2010)

• There were substantial increases in government expenditure on student loans (new lending) and student allowances between 2006 and 2010.
• There were significant increases in the numbers of student loan borrowers and student allowance recipients between 2006 and 2010. Part of this increase is a result of increased participation during the recession, but changes to eligibility criteria have also had an impact.
• The representation of students from low-decile schools in tertiary education was maintained between 2006 and 2010.