Dáil Éireann Debate, Tuesday - 2 April 2019
184. Deputy Kathleen Funchion asked the Minister for Education and Skills the projected size of the national training fund from 2019 to 2024; and the projected size of the fund if it was maintained at its current rate of contribution of 0.7 %, in tabular form. [15256/19]
View answerAs part of Budget 2018, the NTF levy was increased by 0.1 per cent in 2018 from 0.7 per cent to 0.8 per cent – providing over €47m (net) of additional investment in the Higher and Further and Training Education Sectors. On foot of decisions taken in Budget 2019, the levy increased to 0.9 per cent in 2019 providing €69 million (net) of additional investment in higher and further education and training bringing the total expenditure allocation from the NTF to €486 million in 2019. A further increase to 1.0 per cent in 2020 was announced in Budget 2019. There is no further increase in the levy planned beyond the 1.0 percent in 2020 and, therefore, no further increases due to levy changes are projected.
Decisions taken as part of Budget 2019 will also see the creation of a new ring-fenced funding line, the Human Capital Initiative, to be established within the National Training Fund to draw down €60 million per annum from the accumulated surplus, over the 5 year period 2020- 2024.
The following table sets out the annual forecasts for National Training Fund (NTF) levy receipts for 2019 to 2021, based on different levy rates. These forecasts were provided by the Department of Employment Affairs and Social Protection and are based on macroeconomic employment and wage projections. Forecasts beyond 2021 are not available.
The net additional expenditure available from increases in the levy would be lower than the gross revenue yield as the calculation of such increases must take account of the increased costs which arise for public sector employers. The expenditure ceiling for the National Training Fund is set as part of the Estimates process, having regard to the Government's overall budgetary and fiscal stance, and so the amount available for expenditure in any given year may vary from the forecast income.
|
- |
2019 |
2020 |
2021 |
|
Income generated from 0.8% levy |
€589.2m |
€620.1m |
€650.3m |
|
Income generated from increase to 0.9% levy from 2019 |
€662.1m |
€703m |
€737m |
|
Income generated from increase to 0.9% levy from 2019 & 1% from 2020 |
€662.1m |
€780.5m |
€824.9m |
