Written answers

Wednesday, 8 December 2021

Department of Education and Skills

Apprenticeship Programmes

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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112. To ask the Minister for Education and Skills the estimated cost of removing the exemption of apprenticeships to the National Minimum Wage Act 1998; and if he will make a statement on the matter. [60628/21]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Apprentices are employees and their rates of pay are agreed between themselves and the employer. Certain sectors such as construction and electrical apprentices are paid agreed rates as set out within sectoral wage agreements to under Sectoral Employment Orders.

The State pays training allowances directly to apprentices in the 25 craft apprenticeships while attending off-the-job training in Phases 2, 4 and 6 of their seven phase apprenticeship. These allowances are paid by the ETBs through the Department of Education Shared Business Services and are funded through the NTF.

The National Minimum Wage is currently €10.20 an hour for adult workers aged 20 and over. However workers under the age of 20 are subject to different rates of minimum pay depending on age as follows

- Under 18€7.14

- Aged 18€8.16

- Aged 19€9.18

Apprentices in Phase 6 and 15 of the 25 Phase 4 cohorts receive training allowances in excess of the adult National Minimum Wage. Taking the current craft apprentice cohort in off-the-job training phase 2 or 4, the cost of training allowances is €2.24m per week. The estimated cost to the State of training allowance payments at the minimum wage at €10.20 an hour is estimated at €2.56m per week across phases 2 and 4, a difference of €310k per week, or in the region of €16m per annum.

It should be noted that 53% of currently registered craft apprentices are below the age of 20 and thus subject to lower minimum wage rates. If the minimum wage rates were used to set training allowance rates, eight of the phase 2 apprenticeships would potentially receive a lower weekly rate of pay than currently, depending on age.

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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114. To ask the Minister for Education and Skills the total allocated each year under the apprenticeship incentivisation scheme since it began; the total actual expenditure to date; and if he will make a statement on the matter. [60712/21]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The Apprenticeship Incentivisation Scheme was launched in 2020 to support employers to continue to recruit and employ apprentices during the COVID-19 period. Apprenticeship provides a rapid route to employment while gaining a qualification and therefore is an important skills response for workers most impacted by sectoral closures and a potential need to reskill.

The introduction of the scheme was a key element in the Government response to the pandemic and supporting a rapid reopening of the economy. The positive impacts of the support measures is evident in apprentice registrations with 2021 figures to the end of November showing 7,484 registrations – an increase of 29% on figures for the same period in 2019 (pre-COVID).

Given the continued growth of apprenticeship and key economic sectors the AIS will cease from end 2021. The allocation for the apprenticeship incentivisation scheme over 2020 and 2021 was €26 million. Spend has been €13.6 million. A further €1.7m is in final stages of approval for payment. €9m has been allocated to the scheme for 2022 to allow for second tranche payments and payments to employers of apprentices registered in late 2021.

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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115. To ask the Minister for Education and Skills the number of craft apprentices currently on waiting lists to access off-the-job training; and if he will make a statement on the matter. [60713/21]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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Craft apprenticeships account for 25 of the 62 existing available apprenticeship programmes. Given the practical nature of off-the-job training for craft apprentices, the COVID-related shutdown of on-site learning activity in 2020 and 2021 had a significant impact on the ability of craft apprentices to access off-the-job training. As at the end of November, there were 11,382 craft apprentices waiting to start a phase of off-the-job training. Of these, 3,143 apprentices (27%) across the three phases have been scheduled and will begin training in December and January.

€20m capital investment has been supplemented by €17m additional COVID-linked funding in 2022 to deliver an additional 4,000 off-the-job training phases (across phases 2, 4 and 6). SOLAS, the HEA and education and training providers are continuing to work to ensure that craft apprentices are facilitated to complete their apprenticeship in as rapid a manner as is possible. Measures include the reform of Phase 2 off-the-job training to facilitate a third intake per annum, an opt-in rapid employer assessment which is being piloted at Phase 7 (on-the-job) for those apprentices who have completed Phase 6 and who have spent more than four years in their apprenticeship. Further measures are being explored within the context of ensuring that all learning outcomes and quality assurance procedures are in place to ensure that the integrity of the end qualification is maintained.

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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116. To ask the Minister for Education and Skills the total capacity of phase to off-the-job training of craft apprentices in 2019; the total enrolled capacity of phase to off the job-training in September 2022; and if he will make a statement on the matter. [60714/21]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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In 2019 SOLAS delivered training to a total of 9,503 craft apprentices across phases two, four and six off-the-job training in ETBs and Higher Education Institutions.

It should be noted that Phase 2 classes are between 20-22 weeks in duration and are run all year round, therefore scheduling of those classes is ongoing throughout the year. Traditionally, ETBs have facilitated two intakes per year. Significant reform efforts by the education and training bodies have resulted in a temporary restructure of Phase 2 craft apprenticeship delivery, delivering 18 week on-site presence, supplemented by additional theory elements of the course being delivered in a flexible manner (evenings/weekends and blended learning). This will allow for a full additional intake for Phase 2 Carpentry & Joinery, Electrical and Plumbing apprentices in the coming year.

Phases 4 and 6 are 10-12 weeks in duration and are delivered in Institutes of Technology and Technological Universities. Scheduling of these phases follow the academic year with intakes scheduled in September, January and April of an academic year.

Additional places are continuing to come on-stream across the ETBs and HEIs as workspaces are becoming available from the 2021 capital investment.

Since July, almost 3,500 apprentices have been brought into training, the majority just about to finish their phase. SOLAS have scheduled another 3,143 apprentices to commence off-the-job training in December and January.

€20 million capital funding was allocated in 2021 to provide structural capacity to support the delivery of almost 4,000 additional craft apprentice places annually across further and higher education. The 2021 budget allocation for apprenticeship is €198.4m which includes the cost of the Apprenticeship Incentivisation Scheme in 2020 and 2021 as well €12m Covid related costs for additional classes in 2021. This compares to a 2020 allocation of €169m which represents an increase of over 7%. A further €19m in COVID-related funding has been allocated for 2022 to deliver increased activity to reduce waiting lists for access to off-the-job training phases.

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