Written answers

Wednesday, 3 July 2019

Department of Education and Skills

National Training Fund

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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171. To ask the Minister for Education and Skills the amount of revenue collected by the national training fund levy in each of the years 2000 to 2018 and to date in 2019; the amount spent from the national training fund in each of the years 2000 to 2018 and to date 2019, in tabular form; and if he will make a statement on the matter. [28391/19]

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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172. To ask the Minister for Education and Skills the amount in the national training fund, including funds held in reserve and carried over from underspends in previous years; and if he will make a statement on the matter. [28392/19]

Photo of John HalliganJohn Halligan (Waterford, Independent)
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I propose to take Questions Nos. 171 and 172 together.

The National Training Fund (NTF) comprises part of the overall annual expenditure ceiling for the Department of Education and Skills.  On that basis NTF spending is subject to the EU expenditure rule which as the Deputy will be aware is designed to ensure that growth in public expenditure is sustainable and supports the achievement of key fiscal targets. 

There has been very substantial growth in NTF spending in recent years on the basis of the +0.1% increase in the Training Levy in both 2018 and 2019 with expenditure increasing by €58m (16%) and €69m (17%) respectively.  This has supported a very significant expansion in NTF priorities. 

The NTF currently supports 18,000 apprentices; 42,000 jobseekers looking for work; 5,000 trainees; 31,000 students in enterprise; 9,247 Springboard courses; 62,000 places on courses to meet skills gaps; and upskilling another 5,000 workers.

As detailed in the National Training Fund Expenditure Report 2019 published last week, €485m is being invested in programmes in 2019 which meet skills needs in the economy, support unemployed people in their journey back to work and assist those in employment to acquire new skills. This includes the expansion of the apprenticeship and traineeship schemes, additional investment in Springboard and additional support to increase skills for those in employment through Skillnet Ireland.

The surplus in the NTF at the end of 2018 amounted to €473m. The accumulated surplus in the NTF has previously been critical in maintaining expenditure levels, particularly in the provision of training for the unemployed, in recession years when NTF income declined.  It is clearly prudent to continue to maintain an adequate surplus in the Fund to meet demand in future years and while the surplus represents a very significant amount, it would only cover twelve month's NTF expenditure at current levels.

A further increase in NTF spending estimated at €70m approximately is expected to take place in 2020 on the basis of the further +0.1% increase in the Training Levy. 

This will be supplemented in 2020 by €60m investment in the Human Capital Initiative (HCI) also funded from the NTF announced in Estimates 2019.  The HCI is a 5-year programme of increased investment in priority skills in higher education amounting to €300m over the period 2020 - 2024.

Details in relation to NTF income and expenditure in each of the years from 2000 to date as requested by the Deputy are in the table.  The Deputy should note that NTF accounts for 2001 include the period from the NTF's establishment on 21 December 2000 to 31 December 2001.

Income from National Training Fund LevyTotal Expenditure from fund
2001187,921,236168,941,224
2002239,000,000204,583,430
2003250,000,000233,722,861
2004273,000,000276,678,337
2005327,000,000312,738,093
2006366,000,000352,718,974
2007408,000,000394,589,181
2008413,000,000399,146,178
2009372,000,000366,482,465
2010309,000,000395,221,768
2011316,000,000326,269,322
2012299,000,000340,896,121
2013317,000,000348,804,784
2014338,000,000346,906,382
2015364,000,000334,210,109
2016390,000,000344,399,000
2017431,000,000357,230,000
2018565,500,000415,394,000
To June 2019356,000,000231,793,087

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