Press release
Minister Bruton publishes independent review of the National Training Fund
Published on
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Published on
Last updated on
The Minister for Education and Skills, Richard Bruton, TD, has today published a comprehensive independent review of the National Training Fund.
The National Training Fund (NTF) was established by the National Training Fund Act 2000 to raise the skills of those in employment, to give relevant skills to those preparing for employment and to support lifelong learning.
The review of the NTF was commissioned by the Department of Education and Skills as part of a package of reforms announced to accompany the decision in Budget 2018 to raise the NTF levy. This followed a consultation process with key stakeholders, during which issues were raised regarding the transparency of the use of the Fund, the alignment of expenditure for employer needs and the role of employers in informing expenditure priorities. The independent review, which was undertaken by Indecon, examines the existing operation of the NTF and provides recommendations to inform its future direction.
There are 14 specific recommendations across 4 key areas:
Minister for Education and Skills, Richard Bruton TD, said:
“I welcome the clear emphasis placed by the Report on making the National Training Fund more responsive to the changing world of work. It is vital that enterprise becomes more engaged in the challenge of upskilling, in shaping optimal programs and in examining their impact. It is through the way that we develop and deploy talent that we will enhance enterprise success and raise living standards. I welcome the recommendations contained in the review - the implementation of these recommendations is an important step in the ongoing reform of the Fund."
“I have asked my officials to prepare an Implementation Plan for publication to deliver these important recommendations. In particular I have asked for a specific focus on early action to meet pressing skill needs, to secure greater employer engagement and to strengthen governance and oversight of the Fund in advance of Budget 2019.”
The Minister went on to say:
“The NTF is a key enabler in the development of the skills and human capital that power our economic performance in a rapidly changing world. I have set out our ambition to have the best education and training service in Europe by 2026. A key part of this is to equip our citizens and businesses with the skills they need to thrive, even in a time of uncertainty.”
The report can be accessed on the Department of Education and Skills website at the following link: https://www.education.ie/en/Press-Events/Press-Releases/2018-press-releases/indecon-review-of-national-training-fund.pdf.
ENDS
The National Training Fund (NTF) was established by the National Training Fund Act, 2000, as a dedicated fund to support raising the skills of those in employment, and those preparing for employment. The Act also provides for the funding of research to provide information on existing and likely future skills requirements of the economy. The NTF funds programmes in the higher education and further education and training sectors, as well as training grants to employers and some smaller programmes.
The creation of the fund was announced in Budget 2000 by the then Minister for Finance to raise the skills of those in employment, to give relevant skills to those preparing to take up employment and to facilitate lifelong learning. The NTF levy, which is collected through the PRSI system, replaced the Apprenticeship Levy which was set up under the Industrial Training (Apprenticeship Levy) Act 1994. In May 2010, responsibility for the NTF was transferred from the Minister for Enterprise, Trade and Innovation to the Minister for Education and Skills.
Following a consultation process, the government, as part of Budget 2018, decided to raise the rate of the National Training Fund (NTF) levy by 0.1% in 2018 to 0.8% and, subject to progress on a range of reforms, by a further 0.1% in both 2019 and 2020. This increase in the NTF levy takes account of the benefit to employers of having access to skilled graduates across further education and training and higher education to meet their identified skills needs as well as being able to access training for their current employees.
The measure allows for additional expenditure of €47.5 million from the NTF in 2018 under the EU fiscal rules. Total provision from the National Training Fund in 2018 is €415 million. Further detail on spending from the Fund is available at https://www.education.ie/en/Publications/Education-Reports/national-training-fund-expenditure-report-2018.pdf.
Following issues raised during a consultation process prior to the budget announcement, a number of key reforms to the NTF are being introduced to make it more responsive to employer needs, to give employers a greater say in informing priorities for the Fund and to improve overall governance, evaluation, transparency and oversight.
Some of the key reforms include:
The terms of reference for the review of the NTF, finalised following input from the National Skills Council, are set out below:
The review was undertaken by Indecon International Research Economists, following a competitive tender process.