Dáil Éireann Debate, Wednesday - 25 October 2017
94. Deputy Joan Burton asked the Minister for Education and Skills the reason the projected yield in the budget for a 0.1% increase in the national training levy was significantly higher than that provided in responses to parliamentary questions and in the political party costings provided by his Department; and if he will make a statement on the matter. [44708/17]
Amharc ar fhreagraIt was announced as part of Budget 2018 that from 1st January 2018 there will be a 0.1% increase, from 0.7% to 0.8%, in the National Training Fund Levy payable by employers in respect of reckonable earnings of employees in Class A and Class H employments. The net fiscal space generated by this increased revenue will be used to enhance investment in higher and further education and training.
Initial calculations were undertaken earlier in the year to develop costings of this measure. These were updated immediately prior to the Budget in order to reflect the latest available projections for employment and NTF receipts and to give the most up-to-date forecast of the yield for this measure in the budget.
The most up-to-date calculations indicate that the net amount available for expenditure, after taking account of additional Exchequer costs to provide for the levy increase for those in public sector employment, is €47.5 million in 2018.
The €47.5 million additional funding, together with an additional €17 million in Exchequer current funding, will be used to enhance investment in the higher and further education and training system. This will include providing for skills development programmes, apprenticeships and traineeships, access, demographic increases, innovation and performance funding and development of Technological Universities. This will build on the €36.5 million investment in higher education this year which was announced as part of Budget 2017.
I am introducing a series of reforms to the National Training Fund to respond to issues raised by employers during the consultation process on employer-exchequer investment in higher and further education and training. This includes an independent review of the National Training Fund, a greater say for employers in determining priorities of the NTF, a greater focus on transparency and evaluation, greater alignment of NTF spending with employer needs and more expenditure on skills programmes.
