Group of young people standing against a wall.

Changes to the Training Opportunities Programme

05 August 2010.

The Training Opportunities Programme (TOPS) is being reconfigured to ensure the funding is tightly targeted to the right people.

The Training Opportunities Programme (TOPS) is being reconfigured to ensure the funding is tightly targeted to the right people, to make sure they get the skills they need to find work in the local labour market or help them prepare for work if they are not ready to work now.

In future Work and Income will be administering a proportion of the existing funding. We will be working with TOPs providers to deliver a new set of programmes that will get more New Zealanders into paid work. This page outlines what’s happening and why.

Questions and Answers

What is changing / why is it better?
Around 50% of people on the existing TOPs programme are very close to being work ready.

The Tertiary Education Commission (TEC), the Ministry of Social Development (MSD) will now allocate the funding between them in a 60:40 split.

MSD will fund short, employment-focused training programmes that will get this group into work and able to support themselves. Work and Income has the indepth knowledge of the regional labour markets and knows what employers want. MSD has a network of 86 Industry Partnerships. They understand what skills employers need.

The change recognises there is an opportunity to leverage off the work MSD is already doing.

TEC will continue to deliver TOPs courses to improve literacy and numeracy but these courses will be shorter with stronger links to employment.

What happens next?
Most current providers are already delivering results, or need only minor assistance in reshaping their programmes. Nevertheless we appreciate this is a significant shift for the sector and we know some will feel unsure and vulnerable. As a result, we will be transitioning the providers working with us to the new programmes over the next seventeen months.

Moving to a new way of working cannot happen overnight, it requires a considered, measured approach. As soon as we have a confirmed timeline for the transition process, and as the implementation plans firm up, we will keep providers informed.

What kind of organisations will move from TOPs to Employment Training?
All providers deliver labour market outcomes as a requirement of receiving TOPs funding now, there are some that deliver proportionally more employment outcomes from their programmes and others that deliver proportionally more further education outcomes from their programmes.

MSD and TEC think that some provision in each region is more naturally aligned to evolve into Employment Focussed Training and we will be talking to those providers about considering shifting to this form of delivery from January 2011. We will maintain a dialogue with all providers who would consider shifting later in 2011.

Who will be eligible for Employment Training programmes?
Clients of Work and Income who are assessed as more work ready will be referred to Employment Training Programmes. We want to ensure that clients get the right kind of training they need to successfully transition into employment.

Work and Income will ensure that referrals to programmes match the intent of the programme whether it is Employment Training, or Foundation programmes with TEC.

What kind of programmes will be developed?
Programmes will be focused on getting people the right core skills that employers need for their entry level jobs, so unit standards and credits relating to local industry needs are part of the programme delivery mix. There will be support to get clients a job post-programme and for them to retain that job once employed.

Work and Income will also work with industry organisations, councils and local employers to identify where work opportunities exist. They will then work with providers to design programmes that meet that skill base.

How is Employment Training any different to Straight to Work?
Some of the Employment focused funding will be used for extra Straight 2 Work programmes. These Straight 2 Work programmes commence with a set number of trainees, who participate together on pre-employment training that is prescribed to a particular industry or employer, (e.g. a local meat processing company wanting to deploy a new shift team commencing in October). Trainees are placed in pre determined jobs, and are supported in work for a set period of time.

The rest of the employment focused funding will be used for Employment Training. These Employment Training courses will deliver skills training that a broader group of employers have expressed a need for (e.g. the local hospitality sector, or retail sector). The skills learned on these courses will be relevant to those jobs and industries where local employers expect to see growth.

Can students self refer to the new employment related training and foundation programmes?
Everyone that gets accepted for programmes will need to be referred by a Work and Income Case Manager. Clients can still enquire about programmes through the provider but they will need to have Work and Income make the referral and consider their Likelihood of long term benefit receipt (LLBTR) rating to work out how suitable the programme is for them.

Students will have a say in what course they do. Local programmes on offer will be available just as they are now and clients will be able to discuss the programmes that suit their career and skill training interests with a case manager.

What is the process for providers if they are referred a client who is unlikely to have a positive outcome in the time they have to work with them?
The evidence shows the best outcomes are achieved by training that takes a shorter and more focussed approach than the current 40 week courses.

Foundation programmes will be no more than 26 weeks and employment related programmes no more than 13 weeks. There will be some exceptions where the client may attend one further training programme (not exceeding 26 weeks) because due to their specific circumstances they are not ready to enter employment. In such cases a Work and Income Case Manager would discuss the full range of options available to the client including options such as other training or work experience.

We are also developing processes and guidelines so providers and frontline staff can get together and review the suitability of a referral for a client in the first place. We will put in place a probation period so an alternative referral can be made. For example, in cases where high learning needs become apparent on an employment related course we might discuss alternatives with the client. This could mean that they withdraw from the programme they are enrolled in and move to a suitable TOPs foundation programme.

The maximum any one client can participate in reconfigured programmes is 52 weeks, A client with high needs may in some circumstances reach that limit. Providers can have discussions with a Work and Income case manager or programme coordinator if a client with high needs appears unlikely to be ready for employment after a 26 week programme.

Where appropriate, people can move from an initial TOPs foundation programme (26 weeks) to a MSD employment related programme (13 weeks) to complete their work readiness.

Will NZQA accredited programmes still be important?
Yes they will. We need providers to be NZQA linked for both MSD employment related training and TEC foundation programmes for these reasons:

• NZQA accreditation remains the benchmark for skills training across industry.

• The unit standards and credits learners achieve on programmes need to be relevant to employers and contribute to further formal skills training they may undertake in work.

• NZQA endorsed credits and unit standards are what employers expect from MSD skills training now, we want to maintain that quality in employment related training, and of course foundation programmes as well.

• The due diligence that providers go through to be NZQA accredited removes the requirement to go through another due diligence process to contract to MSD.

Providers will not need to change their accreditation in 2011 because they will be providing programmes they are already accredited to deliver, but they may need to after this time.