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Ireland. VET in Europe – Country Report 2011 - Europa

Ireland. VET in Europe – Country Report 2011 - Europa

Theme 10:

Theme 10: Financing: Investment in Human Resources10.1 VET Financing PolicyThe majority of funding for vocational education and training (VET) in Ireland forindividuals not in employment is provided by the State. This applies for both youngpersons before they enter employment, and unemployed adults.Following formal revisions made in 2009, the OP provides for total expenditure ofjust over €906m, made up of €528m in national public funding, a Community (ESF)contribution of €375m and private funding of €3m. The current allocation of OPfinancial resources across its three priorities is shown in Table 35.Table 35 HCIOP Financial OverviewESF(€M)Exchequer(€M)TotalPublic(€M)Private(€M)Total(€M)% oftotalPriority I - Increasing Activation of theLabour Force 247 400 647 3 650 71.7%Priority II - Increasing Activation andReducing Inequality in the LabourForce125 125 250 0 250 27.6%Priority III - Technical Assistance 3 3 6 0 6 0.7%Total 375 528 903 3 906 100.0%Source: HCIOP Operational Programme, Revised 21/10-2009This financial framework follows revisions made in 2009, which involved a reductionin the exchequer contribution to the overall OP, a substantial increase in the total(national and ESF) financial allocation to Priority 1 and a reduction in the allocationto Priority 2 (Figure 1). The revisions reflected the changed socio-economic contextand substantial growth in unemployment since the OP was originally framed, and theneed to put greater emphasis on activation measures for those within the labourmarket, particularly those recently unemployed 106 .106 Human Capital Investment OP (2007-13) Mid-Term Evaluation Final Report, Fitzpatricks andAssociates, 2011.106

Figure 1: Priority Level Revisions to HCIOP (€m, Public Expenditure) 10710009008007006005004003002001000Revised OPOriginal OPESFExchequerESFExchequerESFExchequerESFExchequerPriority I Priority II Priority III Total OPSource: Human Capital Investment OP (2007-13) Mid-Term Evaluation Final Report, Fitzpatricks &Associates, 2011With regard to funding mechanisms linked to quality assurance indicators, FÁS whichreceives a significant percentage of the ESF budget, to co-fund training activitiesunder the relevant Operational Programme priorities listed above, monitors andreports on training programmes which receive co-funding from the ESF, under anagreed list of indicators which include quality assurance targets, such as the numbersof trainees obtaining certification.10.2 Funding for initial vocational education and trainingExpenditure on initial vocational education and training (IVET) is considerable andhas been growing over the last two decades as young people stay longer at secondaryschool and a greater proportion attend post-school education and training. Fundingfor IVET is very largely from central government, with only small contributions fromemployers or individuals. The ESF, which previously was a major contributor togovernment VET expenditure, now contributes much less funding to IVET. It issignificant to note that the level of ESF funding available to Ireland in the currentOperational Programme is EUR 375 million, much reduced on the EUR 1.2 billionapproximately, for the period 2000-06. The ESF remains, however, an importantinfluence on Government policy and expenditure for IVET for young unemployedpeople and early school leavers.Funding of IVET in secondary level, institutionsThe Department of Education and Skills (DES) is responsible for the funding of107The OP also included a private contribution of €3m, which wasn’t affected by the 2009 OP revisions.107

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