Written answers

Wednesday, 30 June 2021

Department of Education and Skills

National Training Fund

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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170. To ask the Minister for Education and Skills the estimated projected annual income to the National Training Fund and the reserve surplus of the Fund up until 2025 if expenditure remained stable both including and excluding Covid-19 emergency expenditure; and if he will make a statement on the matter. [35013/21]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The National Training Fund (NTF) Act, 2000 provides for a levy on employers to be used to fund the development of and raising of skills amongst those in, or seeking, employment.

The projected reserve surplus of the NTF by 2025 if expenditure remained stable is €1.4 billion, and €1.9 billion excluding Covid emergency spending. See tables below for further detail.

Table 1 – NTF projected surplus including Covid emergency spending (€’000)

2021
2022
2023
2024
2025
NTF Levy A
774,300
783,500
826,300
870,900
918,400
European Social Fund B
27,750
27,750
27,750
27,750
27,750
Total Projected Income
802,050
811,250
854,050
898,650
946,150
Expenditure held flat from 2021
741,273
741,273
741,273
741,273
741,273
Projected Surplus/(Deficit) for the year
60,777
69,977
112,777
157,377
204,877
Balance brought forward at 1 January 2021 C
817,464
Surplus carried forward as at 31 December 2025 (projected)
1,423,249

Table 2 - NTF projected surplus excluding Covid emergency spending (€’000)

2021
2022
2023
2024
2025
NTF Levy A
774,300
783,500
826,300
870,900
918,400
European Social Fund B
27,750
27,750
27,750
27,750
27,750
Total Projected Income
802,050
811,250
854,050
898,650
946,150
Expenditure held flat (excluding Covid from 2022 onwards)
741,273
623,273
623,273
623,273
623,273
Projected Surplus/(Deficit) for the year
60,777
187,977
230,777
275,377
322,877
Balance brought forward at 1 January 2021 C
817,464
Surplus carried forward as at 31 December 2025 (projected)
1,895,249

A2021 Levy is as per 2021 published Revised Estimates. Levy for 2022 onwards is as forecasted by the Department of Social Protection in April 2021.

BThe level of ESF receipts to the NTF in any year depends on the amounts certified to and reimbursed by the Commission in that year in respect of NTF funded activities. For the purpose of this request ESF income continues to be shown at the 2021 published figure in the Revised Estimates.

CAs per draft NTF 2020 Accounts.

The operation of the EU Fiscal Rules, prior to Covid-19, and the inclusion of the NTF in the Department's overall annual expenditure ceiling has meant that, in the absence of an increased rate of contribution or the availability of additional fiscal space, additional expenditure could not be sourced from the NTF without a corresponding drop in Exchequer expenditure. So while the surplus has built up over previous years due to improvements seen in the economic and labour market situation before Covid-19 started to impact in 2020, it was not possible to increase expenditure beyond that generated by the increase in the levy.

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 Training Levy increased in Budget 2020 to 1% allowing a further increase in NTF spending of €77m.

The NTF Advisory Group continues to be the mechanism to inform and guide on investment from the Fund and the use of the surplus. The Group has set out a detailed work plan over the next two years to examine a range of themes that will ultimately guide upskilling and reskilling priorities for the NTF into the future.

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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171. To ask the Minister for Education and Skills if he will provide all emergency Covid-19-related expenditure from the National Training Fund in tabular form; and if he will make a statement on the matter. [35014/21]

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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The National Training Fund (NTF) was established by the National Training Fund Act, 2000, as a dedicated fund to support the training of those in employment, and those seeking employment. The Act also provides for the funding of research to provide information on existing and likely future skills requirements of the economy.

One of the key features of the NTF is its flexibility and the way it responds to changing economic/labour market conditions and this was particularly evident when as part of Government’s response to the labour market and skills effects of the pandemic, a range of measures were introduced as a response to upskilling and reskilling needs of individuals and businesses through the July Jobs Stimulus. These measures are providing 35,000 education and training places at a cost of €100 million to help those who were displaced by the effects of the pandemic. A further 15,000 places were announced as part of the skills package in Budget 2021. Table 1 attached outlined the details of the funding allocated.

Budget 2021 saw an increased investment of €118.5 million over the 2020 NTF Allocation to upskill and reskill people who have been affected by the impacts of the current pandemic and in areas of key skills priorities, particularly the climate agenda. The investment is aimed at those that require it the most, whether that is to assist with seeking employment or to upskill in their current jobs.Table 2 attached outlines the 2021 allocation.

Table 1. July Jobs Stimulus Allocation in 2020.

Detail of Funding Allocated 2020 Cost €000
1. Skills to Compete
This programme is tailored toward those who have lost jobs as a result of Covid 19 and targeted at emerging growth areas and occupations. €37,000
2. Skillnet
Broadly similar to existing Skillnet interventions as well as a blend of other outreach/recruitment, career advice, upskilling and mandatory work placement. €3,000
3. Apprenticeship Incentivisation Scheme
This is a time-limited incentive scheme designed to incentivise employers to take on apprentices. Employers would receive €2k up-front per apprentice and a further €1k after 12 months if apprentice is still on their books. €12,000
4. National Retrofitting Programme
Retrofit Skills training to support the expansion of a National Retrofitting Programme. €500
5. Springboard+ and HCI Pillar 1
HCI and Springboard+ courses are at Level 6 (Certificate) to Level 9 (Masters) on the National Framework of Qualifications (NFQ) €10,000
6. Postgraduate Skills Provision
Create additional places across the full range of existing part-time and full-time postgraduate taught programmes
€22,500
7. Modular Skills Provision
Shorter, more focused courses that can be offered in a flexible manner and could allow people to gain important skills without taking a considerable period away from the labour market.
€15,000
TOTAL HE and FET €100,000

Table 2. Changes in National Training Fund provision 2021

National Training Fund Recipients 2021 Increase in Budget Allocation
€'000
Apprenticeship (SOLAS and HEA)
Difference takes account of apprenticeship incentivisation in 2020 and 2021 as well as the Covid costs for additional classes in 2021 €26,000
Skillnet Ireland
€5m increase in budget from base, difference is net of once off provision of €3m in July Jobs Stimulus €5,000
ETB Employee Development Programme – Skills to Advance and Skills for work
Increases for additional places in Budget €3,000
SOLAS Training for employment
The difference is net of July Jobs Stimulus in 2020 and the carryover costs in 2021, the Skills to Compete in Budget and the retrofitting training €77,099
The Wheel
Increase provision for immediate demand of Training Links Learner Networks, leadership development, preparation of digital delivery post covid. €120
Springboard
Springboard received once off July Jobs Stimulus funding in 2020 plus an additional once off allocation from HCI, the Budget figure of €7m is an increase on the base figure. €7,000
Provision of information on skills requirements
Increased provision for Regional Skills Fora €131
Engineers Ireland (CPD)
Increasing Digital skills and ICT capacity plus development of renewable energy technologies for training. €150
Total €118,500

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