Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 152: To ask the Minister for Education and Skills the amount of funding that has been cut from the education budget on an annual basis in the past five years. [25970/11]

Ruairi Quinn (Dublin South East, Labour)
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Due to changes in the structure of the Vote for my Department over the period 2007-2011, total Education Expenditure for each of the years in question is not readily comparable. These changes include: The transfer out of the Education and Science Vote from 1 January 2009 of funding responsibility for various functions in relation to Youth Organisations and Youth Activities to the Office of the Minister for Children and Youth Affairs; The transfer into the Education and Skills Vote from 1 May 2010 of responsibility for FÁS skills and training programmes (formerly funded through the Department of Enterprise, Trade and Employment). The transfer into the Vote from 1 January 2011 of funding in respect of the provision of nursing education (formerly funded through the Department of Health). The transfer out of the Vote from 1 January 2011 of funding in respect of functions of the National Education Welfare Board to the Vote of the Minister for Health and Children.

Adjusted expenditure figures to reflect the above changes are included in the attached document which shows that, on a comparable basis, overall education expenditure increased during the period 2007-2009, while expenditure was reduced during 2010 and 2011 (2011 figure is estimate). The following summary of budget measures introduced over the period 2009 to 2011 indicates the areas where expenditure adjustments were made and which gave rise to the reduced expenditure in 2010 and 2011.

Note – the above comparable figures differ from published figures of education expenditure

due to changes in the structure of the Vote as outlined in the reply to the question from the Deputy.

due to changes in the structure of the Vote as outlined in the reply to the question from the Deputy.

Main Features (note – some of these measures were moderated in subsequent budgets)

Capital

§ Capital allocation of €889m is an increase of €80m on the allocation for 2008.

Teachers salary and pension costs

§ The net pay bill for teachers' salaries and pensions will increase by almost €300m as a result of a combination of pay increases and the full-year costs of the salaries of teachers appointed this September.

§ The budget allocation takes account of increased enrolments in primary schools and the continued growth in provision for special needs in primary and post-primary schools.

§ Overall, the number of primary and post-primary teachers in schools in September 2009 is projected to be about 200 fewer in each sector compared to September 2008. This is because of a number of measures that are being taken to meet the overall budgetary requirements:

o The mechanism used to allocate classroom teachers to primary schools is the staffing schedule and, with effect from September 2009, the enrolment bands will be based on an average of 28 pupils per class rather than the current 27 pupils per class.

o In the case of post-primary schools, the allocation basis will be altered by one point with effect from September 2009 from the current 18 to 1 basis to a revised basis of 19 to 1.

o In the case of fee-charging post-primary schools, there will be an additional one-point adjustment.

o The ceiling of two on the number of language support teachers per school is being re-imposed, with some alleviation for the position of those schools where there is a significant concentration of newcomer pupils as a proportion of the overall pupil enrolment.

o Arrangements will also be made for the withdrawal of teacher posts which have been historically provided under previous disadvantage schemes to non-DEIS schools.

§ Teacher substitution arrangements: substitution cover will be suspended from January 2009 for absences arising from uncertified sick leave in all schools, as well as for school business absences in post-primary schools.

§ Early Retirement Scheme for Teachers: this pilot scheme is being suspended with immediate effect.

School funding

§ Improvements are being made to the rates of capitation funding available to schools. The combined value is €20m.

In the case of primary schools:

§ The increased financial provision will provide for an increase of €21.42 in the standard capitation, bringing the rate to €200 per pupil. This equates to an increase of almost 12pc on the existing €178.58 grant rate.

§ The ancillary grant will be increased from €151.50 per pupil to €155 per pupil.

In the case of post-primary schools:

§ An increase of €14 per pupil in the capitation grant is a 4.3pc increase on 2008.

§ The capitation grant will now stand at €345 per pupil.

§ There will be an increase of €8 per capita in the equalisation measure payable to voluntary secondary schools, giving a total increase, when capitation and school support services grants are combined, of €22 per pupil.

Abolition in 2009 of certain grants paid to schools

In the case of primary schools:

§ The separate cookery grant, resource grant for language support teachers and equipment grant for resource teachers are being abolished. The total value of these grants was €2m.

§ A further €4.3m is being saved by the reduction in capitation funding for Travellers and withdrawal of certain capitation funding from schools that are not in the DEIS programme but had continued to receive top-up funding originally provided under previous disadvantage initiatives.

In the case of post-primary schools:

§ A number of separate grant payments to second-level schools are being abolished. These are grants for Choirs and Orchestras, Home Economics, Physics and Chemistry, Junior Certificate Schools Programme, Leaving Certificate Applied, LCVP and Transition Year. The total saving will be €5.35m.

§ A further €2m is being saved by a reduction in capitation funding for Travellers and withdrawal of certain capitation funding from schools that are not in the DEIS programme but had continued to receive top-up funding originally provided under previous disadvantage initiatives.

In the case of fee-charging second-level schools:

An anomalous situation has existed whereby fee-charging schools under Catholic patronage were not in receipt of certain grants, including the support services grant, that were paid to other fee-charging schools. This position is being regularised. All fee-charging schools will be treated on a similar basis resulting in a saving of €2.8m. The Protestant block grant remains in place.

Other funding reductions

§ Aid for school books: A saving of €7.5m will result by restricting aid for school books to DEIS schools. A fund of €7m will be available for distribution to schools in the DEIS programme.

§ Library grants: A saving of €2.19m will result from the cessation of funding that the Department made available to local authorities to support school library services.

§ Support for summer courses in Irish colleges: The per capita subvention by the Department to summer courses conducted in Irish colleges (in Gaeltacht areas) is being withdrawn. The saving will be €1.25m.

§ Centre for Talented Youth: The Department has in the past provided an annual grant of €97,000 to the Centre for Talented Youth. This is being withdrawn.

§ Grant for foreign qualified teachers attending Irish courses in the Gaeltacht: This grant is being withdrawn. The saving will be €200,000.

Special needs

§ Resource teachers and special needs assistants (SNAs) will continue to be deployed to meet the needs of children with special educational needs (SEN) at primary and post-primary levels. There are just over 19,000 staff working with special needs children.

§ While in the light of the financial situation it is necessary to defer the implementation of the EPSEN Act, children with SEN will continue to have their SEN met on a non-statutory basis.

§ Further, provision is being made to improve these services through the allocation of an additional €10m which will fund enhanced measures for children with SEN pending the full implementation of the EPSEN Act.

§ School psychologists: Some of this €10 million will contribute to a 33% increase in expenditure on the National Educational Psychological Service (NEPS), resulting in all schools having a service by the end of 2009.

§ SNAs: An increase of €40 million to cover the full-year costs of additional SNAs in the system this September, provision for additional posts next September, and full-year cost of pay increases awarded.

Higher education

§ The current estimates provision for higher education is €1,844m, compared with a 2008 estimate of €1,887m. The estimate allows for an increase in the student registration charge from €900 to up to €1,500 in individual institutions for the academic year 2009/2010. Third-level students entitled to a student support grant will remain exempt from paying the student registration charge.

§ The estimates provision will require restrictions in the implementation of approved projects under the Strategic Innovation Fund and will involve the deferral of planned 2009 increases in medical education places. It will also involve restrictions in the volume of awards made by the two Research Councils (Irish Research Council for Science, Engineering and Technology and Irish Research Council for Humanities and Social Sciences).

Adult and further education

The non-pay grant provision for adult and further education shows a reduction of €8.5m or just under 5pc on the 2008 estimate. This will require a reduction in the provision of 500 places on the Back to Education Initiative – reducing the total number of places to 9,000. The number of places provided in Senior Traveller Training Centres will be reduced by approximately 100 – there are currently 1,084 places provided.

Allowances to participants in VTOS, Youthreach and Senior Traveller Training Centres will be increased in line with the appropriate social welfare rates or FAS trainee allowances.

Youth

Grants for youth services are being reduced by just over 8pc - from €52.6m to €48.2m.

Teacher education

The provision for teacher in-service education support is €28.8m, compared with a 2008 estimate of €33.8m. It is intended to reduce teacher secondments to in-service and, while it will be possible to continue to provide a wide range of services to teachers, the reduced allocation will mean that programmes that are not in an expansionary or prioritised phase will have to be curtailed to a degree.

School transport

§ The provision for school transport is €196m, compared with a 2008 figure of €175m.

§ The post-primary school transport charge is increasing from an annual fee of €168 for junior cycle children and €234 for senior cycle children (payable on a term-by-term basis) to a single annual fee of €300 for eligible post-primary children first payable in summer 2009.

§ The maximum amount payable per single family, regardless of the number of children using the school transport system, will be €650 annually. Eligible children in families who hold a medical card or children with special needs are exempt from the charges.

Reduction in Department's regional office service

The 26pc reduction reflects the intention to rationalise and prioritise some services and to seek efficiencies in the operation of the Department's regional office network.

Other current

Fee increases will be required across the State Examinations Commission (SEC), Further Education and Training Awards Council (FETAC) and Higher Education and Training Awards Council (HETAC). SEC will increase fees by 8pc.

Note: The Government decided in July 2008 that the payroll costs across Government organisations should be reduced by 3pc in 2009 and other restrictions should apply in order to effect cost savings in consultancy, advertising and other administrative areas. This is the background to some of the reductions applying in the Education Estimates for 2009. The estimates provisions under a range of headings will require careful management over the course of the year with expenditure control measures across all areas and possible further tightening measures may be necessary as the year progresses.

Note: The Government decided in July 2008 that the payroll costs across Government organisations should be reduced by 3pc in 2009 and other restrictions should apply in order to effect cost savings in consultancy, advertising and other administrative areas. This is the background to some of the reductions applying in the Education Estimates for 2009. The estimates provisions under a range of headings will require careful management over the course of the year with expenditure control measures across all areas and possible further tightening measures may be necessary as the year progresses.

Main Features

Capital

· Capital allocation of €715 million is being made available in 2010. In addition €79 million capital savings from 2009 will be carried forward into 2010, bringing total capital funding available for Education in 2010 to €794 million.

· The total funding available is a decrease of less than 7% compared to the allocation for 2009.

CURRENT

· The current allocation for 2010 is €8.173 billion which is a reduction of 5.4% over the allocation for 2009. The reduction includes a general pay-related adjustment of €350 million in line with the Government decision to reduce public service pay rates. This accounts for 4% of the reduction. The distribution of this pay adjustment across subheads will be included in the context of the 2010 Revised Estimates Volume.

Additional expenditure measures

· €12 million is being provided in 2010 for the implementation of the Renewed Programme for Government commitment to provide 500 additional teachers over the next 3 years. This allocation will allow for the employment of an additional 200 teachers starting in early 2010 and a further 150 teachers commencing in September 2010.

· €14 million is being provided in 2010 for the implementation of the Renewed Programme for Government commitment to provide additional teachers from September 2010 for the 2010/11 school year to meet demographic pressures and to ensure no further increase in the PTR. This allocation will fund 600 posts in primary schools and 330 in second level schools.

· €19 million is being provided to maintain school capitation grants at current levels and to take account of increased pupil numbers. This allocation will also enable additional funding to be allocated to schools for school books and to support curricular activities as provided in the Renewed Programme for Government.

· The allocation for VTOS is being increased by €7.5 million to meet additional expenditure on allowances due to the change in profile of applicants for the scheme.

· An additional allocation of €3 million is provided for the promotion of Gaeilge in schools, as part of the new 20-year Strategy for the Irish Language.

· The provision for the National Educational Psychological Service is being increased to provide for the increase in psychologists to 210. This will allow NEPS psychologists to provide direct service to every first and second level school and an enhancement of service to special schools and units.

Higher Education

· The provision for 2010 for Universities and Institutes of Technology is €1,266 million which is a 4% reduction on the 2009 provision of €1,318 million.

· The reduction in funding takes account of targeted reductions in numbers employed under an employment control framework for the sector and will also involve further non-pay cost efficiencies.

· Just under €130 million is being provided to higher education institutions next year for research activities, including capital research funding. This underlines the Government's commitment to focussed delivery of its Science, Technology and Innovation strategy. As part of this it is intended that investments under cycle 5 of PRTLI will proceed. The assessment process for PRTLI 5 awards will conclude in early 2010 and, in line with normal lead in times, major elements of expenditure commitments are anticipated to materialise from 2011 onwards.

· The funding available next year for projects under the Strategic Innovation Fund is €18 million a reduction of €8 million on 2009. This reduced allocation will require a further curtailment of project activity. Priority will continue to be given to projects aimed at up-skilling and re-skilling for employment.

Student grants and scholarships

· A reduction of 5% is being applied to the rates of student grants and scholarships. This will provide €10 million in savings in 2010. However, the overall allocation for student support will be increased in 2010 to take account of increased numbers of students.

· The reduction will be implemented to all existing and new grant holders from January 2010. This is in line with reductions in other income maintenance payments including those for the unemployed.

· A further saving of €4 million will be made by the removal of eligibility for student support grants from people in receipt of the Back to Education Allowance and the VTOS allowances for those pursuing a PLC course. However, the cost of the student service charge and any fees payable to colleges will continue to be met by the Exchequer on their behalf. This will apply to all new grant holders in 2010 onwards.

· Support under the Millennium Partnership Fund is being withdrawn saving €2 million.

Adult and further education

· The number of places provided in Senior Traveller Training Centres (STTCs) will be reduced by 300 places from 984 places to 684 places. This in line with the Traveller Education Strategy. Travellers can continue to access the full range of Adult and Further Education programmes across the country.

· Allowances to participants in VTOS, Youthreach and Senior Traveller Training Centres will be reduced in line with the appropriate social welfare rates or FAS trainee allowances.

Teacher education

· The provision for teacher in-service education support is €29.79m, compared with a 2009 estimate of €40m. Restructuring of existing services will continue in 2010. Services will be focused on priority areas including special education needs, child protection guidelines training, implementation of new procedures for underperforming teachers and Project Maths.

· The allocation for pre-service teacher education is being reduced by €3m and will be achieved by reducing the number of post-graduate conversion places.

Teacher Sick Leave and Substitution

· The supply teacher scheme at primary level will cease from the start of the 2010/11 school year. Normal substitution arrangements, which apply to primary schools generally to cover teacher absences at present, will be used to cover substitution in those schools that participated in the scheme.

· From the start of the 2010/11 school year, the maximum number of uncertified sick leave days allowed in the school year for teachers in primary, secondary and community & comprehensive schools is being reduced to 7 days. This is the same amount as is available for teachers in vocational schools and community colleges.

School transport

The provision for school transport is €188m, compared with a 2009 estimated out-turn of €178m. While efficiencies made during 2009 will continue to yield savings in 2010, an increase of €10m is being provided which includes provision for new services as necessary.

Reduction in allocations to Education bodies:

· National Council for Curriculum and Assessment reduced by €0.93m

· National Council for Special Education reduced by €2.3m

· Higher Education Authority reduced by €0.562m

· Dublin Dental Hospital reduced by €0.410m.

· Dublin Institute for Advanced Studies reduced by €0.546m.

· Royal Irish Academy of Music reduced by €0.303m

· National Qualifications Framework (NQAI, FETAC, HETAC) current allocation reduced by €2.1 million.

Other current

· Further savings will be made from expenditure efficiencies in the Department's Administrative Budget (excluding NEPS) (€2.4 million).

· The allocation of €5m funding from the Dormant Accounts fund will allow for the continuation of existing schemes to counteract educational disadvantage funded from this source.

· Funding will be reduced by €1.2 million in 2010 for projects in Local Drugs Task Force areas in the Dublin city and county area. Funding provided by the Department for these projects will be phased out in 2011.

· Funding will be reduced by €1.2 million in 2010 for projects in Local Drugs Task Force areas in the Dublin city and county area. Funding provided by the Department for these projects will be phased out in 2011.

MAIN FEATURES

OVERALL ALLOCATION

· The gross overall Voted allocation for the Department for 2011 will be €8.855 billion. This compares to an allocation for 2010 of €9.002 billion, representing a reduction of 2%. In addition the Estimate includes provision for expenditure of some €362 million under the National Training Fund in 2011, which is a reduction of 14% over the allocation for 2010, due mainly to a projected significant reduction in fund income in 2011.

CAPITAL EXPENDITURE

· The capital allocation for 2011 will be €491 million. The figure reflects the overall medium-term reduction in capital investment announced in the National Recovery Plan.

·

· The capital expenditure envelope for education of almost €1.9 billion over the period of the plan will provide for meeting demographic needs in primary and post-primary schools and for some improvement in the stock of school buildings. The allocation will also provide for some prioritised investment in third-level infrastructure.

CURRENT EXPENDITURE

· A provision for current expenditure of €8.364 billion has been made for 2011. This is an increase of just under 1% on the equivalent 2010 allocation of €8.295 billion. A further €362 million of current expenditure is provided for under the National Training Fund. The 2011 allocation takes account of upward expenditure pressures mainly in relation to student support payments, the cost of pensions and demographic increases. It also takes account of savings of some €175 million to be secured across the education sector. More details regarding current expenditure are provided below.

School Transport

· The 2011 estimate for school transport services is €180 million compared to an allocation for 2010 of €186 million. €4.5 million in savings will be secured in 2011 (rising to €17 million in 2014), through a combination of increases in charges and the implementation of measures identified in a value for money review of the school transport scheme. With effect from the 2011/2012 school year a transport fee of €50 per annum will be introduced for primary school pupils, with a maximum family charge of €110 applying. This charge is being introduced to ensure that school transport provided for eligible primary pupils is fully utilised. The annual charge for post-primary pupils will be increased by €50 from €300 to €350. The combined maximum overall family charge will remain at €650.

· Changes in the 2011/2012 school year arising from the value for money review will include:

o The distance criteria will be applied to all pupils attending primary schools and the exemption under the closed school rule will cease. This means that children who reside less than 3.2 kilometres (2 miles) from the school of attendance and who are availing of free transport to that school under the closed school rule will lose their transport eligibility;

o Services under the minimum numbers, either single services or which are part of double tripping arrangements, will be discontinued. A pick up density of pupils in a distinct locality on a particular route – increasing from the current minimum of 7 to 10 eligible children – will be required to establish or retain services.

· Further changes from the review, which will take effect from a later date, will include the following:

o From the 2012/13 school year, eligibility based on the closed school rule (CSR) and the central school rule will cease for all new children entering primary schools. Existing primary pupils availing of transport under the CSR will retain transport eligibility for the duration of their schooling, provided the requisite distance is met;

o From the 2012/13 school year, the use of the catchment boundary system will cease for all new post-primary children. Eligibility for all new children entering post-primary transport will be on the basis of the nearest post-primary centre or school. Existing arrangements will remain in place for existing post primary pupils for the duration of their schooling;

o New arrangements will be put in place with Bus Éireann on a phased basis for the operation of the scheme. These will include arrangements for an increasing proportion of routes to be provided by private operators. From the 2012/13 school year, Bus Éireann will have full responsibility for the operation of the school transport system including responsibility for processing all applications for school transport or grants. Synergies between school transport, rural transport and Health Service Executive services will be further developed.

Schools

· €22 million in savings will be secured in 2011 though an average 5% reduction in funding grants to schools and Vocational Educational Committees (including mainstream and ancillary grants for schools), and including grants for Adult Literacy, Community Education, School Completion Programme, Youthreach. This will reduce capitation rates to those that applied to schools between 2007 and 2008. (There will also be a similar reduction in capitation rates payable in respect of Senior Traveller Training Centres, VTOS (Vocational Training Opportunities Scheme) and PLC (Post-Leaving Certificate) students). Details of the revised rates for each grant category will be issued to schools and VECs shortly. Reduced rates will also apply to ancillary and support services grants to reflect the reduction in pay that will apply to personnel who are paid from these grants, and who have not yet had the reduction applied to them, with effect from January 2011, e.g. school cleaners and caretakers.

· The 2011 allocation for teacher salaries of almost €3.85 billion takes account of €24 million in savings (rising to €98 million in 2014) to be achieved by reducing teacher numbers through a combination of measures. These measures will lead to a deferral of 150 extra posts and to a reduction of up to approximately 1,200 posts from September 2011 (approximately 700 primary and 500 post-primary posts) which, however, will be partly offset by the addition of an estimated 875 new posts due to demographics. The measures to reduce teacher posts include:

o Deferral of the provision of 150 extra teachers originally planned to be allocated at primary and post-primary level in September 2011;

o Changing the existing favourable pupil-teacher ratio (PTR) to the standard PTR for the Leaving Certificate Vocational Programme (LCVP). Currently, the allocation of teachers to the LCVP is on the basis of 1 teacher for every 17 pupils. This will be changed from September 2011 to the standard allocation basis of 1 teacher for every 19 pupils (or 1 teacher for every 20 pupils in the case of fee-charging schools). This measure will secure savings of approximately 200 posts;

o Standardising the staffing schedule for Gaelscoileanna to the same that operates for other ordinary national schools, the estimated yield from which will be some 50 posts;

o Withdrawal of Resource Teachers for Travellers posts at primary level so that educational teaching supports to Traveller students will now be provided on the same basis as other students in schools. Alleviation measures will be put in place for schools with a high concentration of Traveller children. At post-primary level teaching hours for Travellers will be withdrawn, again with alleviation measures for schools with high concentrations of Traveller children. This measure will secure savings of approximately 600 posts net.

o A phased reduction of 500 over four years in the number of Language Support Teachers, through a demand driven reduction and, if necessary, a change in allocation rules over the period of the plan. A first year reduction of some 125 posts is targeted with effect from September 2011;

o The redeployment of some 170 existing supernumerary posts in post-primary schools from September 2011;

o The removal of 47 primary rural co-ordinator teaching posts currently allocated to DEIS rural primary schools. All of these schools, however, will continue to receive other DEIS supports including financial support, professional development supports, school meals and school books supports;

o The withdrawal from September 2011 of 42 Visiting Teachers for Travellers posts, currently assigned to the National Educational Welfare Board (NEWB). The School Support services, including the School Completion Programme and the Home School Liaison Service under the NEWB, will be adapted to undertake work with Travellers in the future.

· In line with the Traveller Education Strategy and the 2008 value for money review of Youthreach and Senior Traveller Training Centres (STTCs), integrated further education provision for Travellers will be implemented through the phasing out of STTCs by June 2012 and replacement places, prioritised for Travellers, being provided under the Back to Education Initiative (BTEI). This means there will be no new enrolments in STTCs from 1 January 2011.

· €10 million in savings will be secured from rule changes and efficiencies in relation to supervision and substitution arrangements in schools. This will include implementation of the flexibility measures provided for under the Croke Park Agreement whereby post-primary teachers will be available for an extra class period each week to cover for absent colleagues. There will also be a general tightening of the rules covering substitution.

Special Needs Assistants

· The 2011 allocation for pay for Special Needs Assistants (SNAs) will be approximately €350 million, compared to an allocation of €335 for 2010. The allocation provides for the full-year costs of SNAs appointed in 2010. While there will be no reduction in the SNA numbers in 2011 it is intended to place a cap on these numbers. The Department will in this regard work with the National Council for Special Education to develop a new system to manage SNA provision within the total numbers allocation. All schools will be advised of the new system.

Further and Higher Education

· The 2011 provision for Universities, Institutes of Technology and other higher education institutions is €1.113 billion, which represents a gross reduction of 7% on the allocation for 2010. Net of adjustments for increased income in respect of the Student Contribution Charge of €2,000, the overall 2011 reduction is 2.2% (5%, or €14 million, in the non-pay grants payable to these bodies and a 1.5% pay cost reduction).

· Further savings of €27 million will be achieved by replacing the existing €1,500 per year Student Services Charge with a flat higher education Student Contribution of €2,000 with effect from the 2011/2012 academic year. The Student Contribution will apply to all students who currently benefit under the 'free fees' scheme. Higher education institutions will be asked to consider how they could put in place arrangements under which a student may opt to pay the charge in two equal instalments of 50% in September and 50% in January in a given academic year. The contribution will be paid by the Exchequer in respect of students who qualify under the third level grant schemes. These students, who account for some 43% of all undergraduates, will not be impacted by any increase in charges. The Government is also aware of the particular financial pressures that this charge may place on families where family income is marginally in excess of current eligibility levels for maintenance grant support and on families with more than one sibling in higher education at the same time. With this in mind, the current higher education grants schemes threshold will be increased to provide for an additional eligibility category of support qualifying for '50% Student Contribution' (see detail in Appendix). In addition, arrangements will be made to provide that second and subsequent siblings from a single family will not have to bear the full increased cost of the new €2,000 charge.

· The introduction of a new €200 annual contribution for Post Leaving Certificate students will secure savings of €4 million in 2011. The cost of the charge will be met by the Exchequer on behalf of those students who are eligible under the maintenance grant scheme for students attending PLC courses. Eligible students may include those in receipt of the Back to Education Allowance provided that they meet all of the terms and conditions of the relevant student grant scheme.

· Provision of further education opportunities in 2011 will be largely the same as that in 2010, with over 173,000 participants benefiting from VEC interventions.

Student Support

· The 2011 allocation for student support payments is just over €385 million. This represents an increase of some 5%, or €18 million, over the 2010 provision and reflects both increased numbers of students qualifying for grants and a greater proportion of students qualifying for higher rates of grants, which are means tested.

· The current higher education grants schemes threshold will be increased to provide for an additional eligibility category of support qualifying for '50% Student Contribution' .

· The 2011 allocation also takes account of savings of some €22 million (rising to some €51 million in 2014), to be achieved through implementing a range of savings measures in the student support scheme. These measures include:

· A 4% reduction in the rate of student support grants, reflecting the reductions in rates of social protection payments announced in the Budget. This will yield savings of €8 million;

· Changing the qualifying distance criterion for entitlement to the higher non-adjacent rate of grant (distance from home to the higher education institution) from 15 miles (24 kilometres) to 28 miles (45 kilometres). The original distance criterion was set in 1968, before the significant improvement in transport facilities and road networks which has taken place. This measure will yield €10 million of savings in 2011 (€30 million in 2014);

· Savings of €4 million (€13 million in 2014) will be secured by reducing the automatic eligibility of mature students to the higher non-adjacent rate of payment, thereby bringing the arrangements for mature students into line with all other students.

Skills and Training

· Savings of approximately €10 million will be achieved in the area of training allowances and supports. This includes a reduction, consistent with reductions in social protection rates announced in the Budget, of €8 per week in all weekly training allowances and similar support payments. The long-term unemployment bonus paid to VTOS (Vocational Training Opportunities Scheme) students and to FAS trainees will be reduced from €31.80 per week to €20 per week.

· In Budget 2011 the allocation to FÁS for training the unemployed has been decreased by €43 million or approximately 15%. This will result in an equivalent reduction of 15,410 training places that FÁS can deliver for the unemployed next year. This will imply that FAS will deliver approximately 100,000 training places next year as opposed to the 115,000 they are delivering this year.

Other current expenditure items

· The reduced 2011 allocation of just over €18 million for the National Educational Psychological Service (NEPS) takes account of €3 million in savings to be secured through capping at 178 the number of psychologists in the service;

· A saving of €1 million in 2011, rising to €12 million in 2014, will be achieved through the impact of a 10% reduction in salary scales for new entrants to the public service, with all new entrants starting on the minimum point of the new scale.

· €16 million in savings (€39 million in 2014) will be achieved through further reductions in public service numbers on the Education and Skills Vote, including in the Non-Commercial State Agencies under the aegis of the Department. These reductions are on foot of the updated Employment Control Framework in the National Recovery Plan, to control public sector numbers.

· A further €18 million in savings will be achieved through a range of non-pay administrative savings, the management of emerging expenditure pressures and other estimating savings.

· The 2011 allocation of €78 million for the Administrative Budget subheads A1 to A8 includes an additional €1.6 million in staff costs as a result of the transfer of functions in May 2010. When account is taken of this the 2011 allocation for these subheads represents a reduction of 2% on the comparable allocation for 2010.

· The 2011 allocations to a number of bodies under the aegis of the Department reflect reductions in payroll and other administrative savings.