Publication
National Training Fund Annual Expenditure Report, 2020 and 2021
From Department of Further and Higher Education, Research, Innovation and Science
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The purpose of this National Training Fund Report is to set out the expenditure allocations, targets and indicators for each programme in receipt of the National Training Fund for 2020 and 2021 in the context of funding reform in Higher and Further Education, the National Skills Strategy, the Further Education and Training Strategy, the Apprenticeship Action Plan and in the context of the prevailing economic climate, especially the Covid-19 pandemic.
This report also gives an overview of how the Fund responded to skills needs since Budget 2020, through the July Jobs Stimulus in 2020, and an enhanced skills package for 2021.
The National Training Fund (NTF) was established by the National Training Fund Act, 2000, as a dedicated fund to support the training of those in employment, and those seeking employment. The Act also provides for the funding of research to provide information on existing and likely future skills requirements of the economy.
The creation of the NTF was announced in Budget 2000 by the then Minister for Finance to raise the skills of those in employment, to give jobseekers relevant skills and to facilitate lifelong learning. The NTF 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. With the creation of the Department of Further and Higher Education, Research, Innovation and Science (DFHERIS) in 2020, responsibility for the NTF moved to the new department.
Between 2000 and 2018 the NTF was resourced by a levy of 0.7% of reckonable earnings in respect of employees in Class A and Class H employments which represents approximately 75% of all insured employees. Following a consultation process, the Government, as part of Budget 2018, decided to raise the rate of the NTF Levy by 0.1% in 2018 to 0.8%. As part of Budget 2019 the Levy was raised by a further 0.1% to 0.9% and by 0.1% in 2020 on the basis of the implementation of planned reforms.
| Year | Rate | Increase |
| 2000 – 2017 incl. | 0.7% | |
| 2018 | 0.8% | 0.1% |
| 2019 | 0.9% | 0.1% |
| 2020 | 1.0% | 0.1% |
The Levy is collected through the PAYE/PRSI system and funds are transferred monthly to DFHERIS by the Department of Social Protection (DSP).
While the NTF does not form part of the Vote of DFHERIS, the allocation for each scheme is generally determined as part of the annual Estimates process. The NTF is included as an annex to the published Estimates of the Department and, since 2011, it has been included in the overall Departmental expenditure ceiling. The Act provides that where there is a shortfall in the Fund in any financial year the amount of that shortfall may be paid into the Fund from money provided by the Oireachtas.
Following a recommendation of the Indecon Independent Review of the NTF, the NTF Advisory Group (NTFAG) was established in 2019 to consider the priorities and principles of the Fund in light of prevailing economic circumstances and to ensure that training provision is aligned with developing skills needs.
Chaired by an employer representative, Mr. Liam Ryan, and consisting of key stakeholders from employer representatives, agencies and Departmental officials, the NTF Advisory Group meets quarterly.
Funding from the NTF is allocated by the Minister of Further and Higher Education, Research, Innovation and Science with the consent of the Minister for Public Expenditure and Reform, in accordance with the provisions of the National Training Fund Act, 2000.
The total expenditure from the NTF in 2020 and 2021 is outlined in Table 2 below:
| Name of Programme | 2019 Allocation €'000 | 2020 Allocation €'000 | Revised 2020 Allocation | 2021 Allocation €'000 |
| Programmes for those in Employment | 222,860 | 265,022 | 277,022 | 299,792 |
| Skills acquisition for the purpose of taking up Employment | 284,007 | 354,628 | 443,078 | 438,227 |
| Provision of Information on Skills Requirements | 2,223 | 3,073 | 3,073 | 3,204 |
| Bank Charges and Interest | 50 | 50 | 50 | 50 |
| Total | 509,140 | 622,773 | 723,223 | 741,273 |
| Increased Budget 2020 allocation | 113,633 | |||
| Increased Revised 2020 allocation due to July Jobs Stimulus and provision for Christmas Bonus | 100,450 | |||
| Increased Budget 2021 allocation | 118,500 |
SOLAS and the Higher Education Authority (HEA) are the main recipients of NTF funding, accounting for roughly 92% of the 2021 allocation. Their funding includes the costs of providing Apprenticeship/Training Courses and the cost of training allowances paid to participants on Apprenticeship/Training Courses; Enterprise Focused Higher Education Provision; and the Human Capital Initiative. The breakdown of the 2020 Allocations and the 2021 Allocation by recipient organisation are presented in Table 3 below.
| NTF allocation | Budget 2020 Allocation | 2020 July Jobs Stimulus Allocation | Budget 2021 Allocation |
| SOLAS | €282,342,000 | €332,292,000 | €376,441,000 |
| HEA | €286,790,000 | €334,290,000 | €305,790,000 |
| Skillnet Ireland | €35,898,000 | €38,898,000 | €40,898,000 |
| Other | €17,693,000 | €17,693,000 | €18,094,000 |
| Total allocation | €622,723,000 | €723,173,000 | €741,223,000 |
| Difference to Budget 2020 Allocation | €100,450,000 | €118,500,000 |
One of the key features of the NTF is its flexibility and the way it responds to changing economic/labour market conditions. By way of illustration, Figure 1 shows the income and expenditure trends from 2011 until 2021, while Figure 2 demonstrates that as the economic climate has improved, expenditure on training for those in employment has increased. There has been a corresponding reduction in expenditure on training for those seeking employment in the same interval. The income trend shows a steady increase from 2014 – 2019 due to an improving employment situation and the increases in the Levy since 2018. While the income for 2020 incorporated the additional increase in the Levy, it remained largely static due to the impact of the pandemic, though income rose again significantly in 2021. Figure 1 also shows the significant rise in investment in 2020 and 2021 to address the key skills needs arising from the pandemic.
Image: Figure 1: NTF report 2020-21
Image: Figure 2: NTF report 2020-21
At the time of Budget 2020 in October 2019 there was a strong emphasis on investment in training those who were in employment due to the buoyant economy and a decrease of numbers on the live register.
Among the key commitments outlined in Budget 2020 were the following:
Commitment to development of apprenticeships set out in the National Action Plan for Apprenticeships and Traineeships 2016-2021 with 1,800 additional registrations on new apprenticeships and 5,765 new registrations on pre-2016 apprenticeships throughout 2020.
In line with Government policy to support workforce upskilling and a commitment to roll out the Education and Training Boards (ETBs)-led Skills to Advance programme to target existing employees with limited formal qualifications, funding was provided for an additional 3,000 employees in this area through focussed initiatives targeting employers, individual employees and sectoral and regional responses via a competitive call.
Skillnet Ireland committed to providing substantial additional training and development as follows:
- Further expansion of 7,000 places in Skillnet Ireland’s existing network of enterprise-led training programmes.
- A new SME upskilling scheme targeting 1,200 owners / managers in 2020 to assist in responding to the productivity gap in the indigenous SME sector.
- The Digital Skills Initiative providing 2,150 training places to over 900 companies in 2020 to help meet the objectives of Technology Skills 2022 – Ireland’s 3rd ICT Skills Action Plan.
Increased funding to support the network of nine Regional Skills Fora as a mechanism for employers and the Further and Higher Education and Training system to work together in identifying and building the skills needs of their respective regions through sustainable engagement with all relevant stakeholders.
Additional funds were provided to SOLAS to implement targeted learner supports across a broad range of programmes to meet the needs of a diverse range of learners through technology enhanced learning, early intervention supports and supports for those with disabilities.
Additional funding was provided for enterprise-focused higher education as the NTF was deployed in support of further close-to-labour-market skills programmes in areas of identified skills needs.
Table 4 below sets out the NTF allocation for 2020 as compared with 2019.
- Allocation 2019: €142.3m
- Changes in 2020 : €30.1m
- Allocation 2020: €172.4m
- % Change: 21%
1,800 registrations on new apprenticeships and 5,765 registrations on pre-2016 apprenticeships in 2020.
- Allocation 2019: €120.1m
- Changes in 2020 : €28.2m
- Allocation 2020: €148.3m
- % Change: 23%
The NTF will be deployed to support further close-to-labour-market skills programmes in areas of identified skills needs with support for enterprise-focused higher education.
- Allocation 2019: €28m
- Changes in 2020 : €7.9m
- Allocation 2020: €35.9m
- % Change: 28%
Will support 7,000 additional participants on Skillnet Ireland programmes including a new digital skills initiative to assist with ICT shortages across the country and an SME upskilling scheme to assist in addressing productivity issues of indigenous SMEs.
- Allocation 2019: €14m
- Changes in 2020 : €6.3m
- Allocation 2020: €20.3m
- % Change: 45%
Funding will be provided for an additional 3,000 employees in this area through focussed initiatives targeting employers, individual employees and sectoral and regional responses via a competitive call.
- Allocation 2019: €126.5m
- Changes in 2020 : €3.6m
- Allocation 2020: €130.2m
- % Change: 3%
Implement additional targeted learner supports across a broad range of programmes to meet the needs of a diverse range of learners through technology enhanced learning, early intervention supports and supports for those with disabilities.
- Allocation 2019: €0.6m
- Changes in 2020 : €0.3m
- Allocation 2020: €0.9m
- % Change: 50%
An additional 1,000 trainees for dedicated in-employment upskilling, research to scope skills gaps for employers in non-profits, engagement with national skills policy. Total of 8,000 trainees.
- Allocation 2019: €34.4m
- Changes in 2020 : -
- Allocation 2020: €34.4m
- % Change: No Change
Maintain delivery of graduate programmes, will be complemented by Pillar 1 of the HCI.
- Allocation 2019: €2.2m
- Changes in 2020 : €0.85m
- Allocation 2020: €3.1m
- % Change: 41%
Increased support for SLMRU, Regional skills FORA and EGFSN.
- Allocation 2019: -
- Changes in 2020 : €60m
- Allocation 2020: €60m
- % Change: New Allocation
Increased provision on courses responding to identified skills needs, providing reskilling and upskilling opportunities, increased undergraduate provision, and incentivising continued reform and innovation in higher education provision.
| Engineers Ireland (CPD) | €0.25m | €0.25m | ||
| DEASP | €7m | (€0.3m) | €6.7m | -4% |
| Training grants to industry (IDA and Enterprise Ireland) | €6.5m | €6.5m | ||
| Regional Skills Innovation | €0.8m | €0.8m | ||
| European Globalisation Fund | €0.05m | €0.05m | ||
| Traineeships in employment | €2.9m | €2.9m |
- Allocation 2019: €485.60
- Changes in 2020 : €137.1
- Allocation 2020: €622.70
- See breakdown by programme in appendix 1
Apprentices are paid an allowance equivalent to their on-the-job wages for periods spent in education and training institutions. In addition, unemployed participants on training courses are paid a training allowance by ETBs based on their Department of Social Protection (DSP) payment. In the case of training for unemployed people these allowances are integral parts of the programmes, as (i) they facilitate the participation of individuals who would not otherwise be in a position to take up training and (ii) they ensure that only individuals who are active participants in the training are in receipt of the allowances.
Income support paid from the National Training Fund for 2020 was €145.1 million, which was 22.6% of the overall €640.89 million expenditure from the fund. This figure included a provision of €20.1 million in respect of the payment of taxation for the apprenticeship allowances.
In 2017 the Revenue Commissioners undertook a review of the allowances paid to craft apprentices while attending their off-the-job training phases in an ETB or Institute of Technology (IoT) as part of their compliance programme and determined that these payments fell into the charge to income tax under Schedule E of the Taxes Consolidation Act and as such were subject to deduction under the PAYE system. This ruling took effect from 1 January 2018.
A net liability for 2018 of €6.2m was agreed and paid to Revenue, of which €6m was paid from the NTF in 2019 and €0.2m by ETBs in the form of employers’ PRSI. The tax liability in 2020 amounted to €14.4m. In March 2020, the ETBs moved to paying a gross amount to apprentices through a payroll system. This revenue liability will therefore no longer have an impact on the NTF. The payment of €20.1m was sanctioned by the Department of Public Expenditure and Reform (DPER).
As part of Government’s response to the impact of the pandemic on labour market and skills a range of measures were introduced to meet the upskilling and reskilling needs of individuals and businesses through the July Jobs Stimulus in 2020. These measures provided 35,000 education and training places at a cost of €100 million to help those who were displaced by the effects of the pandemic. A further 15,000 places were announced as part of the skills package in Budget 2021.
The NTF was able to deliver rapidly on much of the July Jobs Stimulus.
More than 11,000 enrolled on the ETB-led Skills to Compete initiative to date with funding for further places secured through Budget 2021; the remainder of the places were to be taken up over the course of 2021. The establishment of an oversight group with DSP, DFHERIS, Education and Training Boards Ireland (ETBI) and SOLAS representatives greatly strengthened planning and further definition of programmes for 2021.
Over 1,200 companies provided places under the Skillnet Ireland Skills Connect initiative in a wide variety of sectors such as medtech, financial services and the sustainable economy. By the end of 2020 4,691 individuals had undertaken upskilling or reskilling opportunities through the Skills Connect Programme. A further 4,947 individuals took part in Skills Connect in 2021.
There was a significant recovery in apprenticeship registration numbers following the introduction of the apprenticeship scheme. Registrations for the fourth quarter 2020 surpassed those of 2019, with 5,326 new apprentice registrations by year end (86% of 2019 registrations). In addition, a new Action Plan for Apprenticeship was published in April 2021, which aims to grow new apprentice registration to 10,000 per annum by 2025. The Action Plan will ensure that Ireland will have a modern apprenticeship system that is reflective of Irish society whilst supporting both learners and employers.
Retrofit training was rolled out across the country in 2021, following the investment in preparing specialised training centres through the stimulus funding. €8 million was allocated in Budget 2021 to support the delivery of retrofit training through this network, including short courses for experienced crafts persons and longer programmes for new entrants, including unemployed people, and those seeking to upskill.
The Springboard+ and HCI upskilling initiatives provided incentivised places for graduates to reskill in areas of skills shortages and emerging technologies, including information and communications technology, data analytics and robotics. Under the July Jobs Stimulus an additional €10m of funding was provided for the creation of a further 2,000 places across both programmes. Overall 15,000 places were provided for across both programmes in the academic year 2020/21.
Over 2,000 additional places were provided across a range of existing full and part-time taught postgraduate programmes ranging from post-grad certificate to masters level. In addition, funding of €15m was provided for shorter, more focused courses that can be offered in a flexible manner and through blended or online learning to allow people to gain important skills without taking a considerable period away from the labour market.
- 2020 Cost: €37m
- Places: 7,871
This programme is tailored toward those who have lost jobs as a result of Covid 19 and targeted at emerging growth areas and occupations.
- 2020 Cost: €3m
- Places: 3,060
Broadly similar to existing Skillnet interventions as well as a blend of other outreach/recruitment, career advice, upskilling and mandatory work placement.
- 2020 Cost: €12m
- Places: 965
This is a time-limited incentive scheme designed to incentivise employers to take on apprentices. Employers would receive €2k up-front per apprentice and a further €1k after 12 months if that apprentice is still on their books.
- 2020 Cost: €500k
- Places: -
Retrofit Skills training to support the expansion of a National Retrofitting Programme.
- 2020 Cost: €10m
- Places: 3,751
HCI and Springboard+ courses are at Level 6 (Certificate) to Level 9 (Masters) on the National Framework of Qualifications (NFQ)
- 2020 Cost: €22.5m
- Places: 2,555
Create additional places across the full range of existing part-time and full-time postgraduate taught programmes.
- 2020 Cost: €15m
- Places: 11,597
Shorter, more focused courses that can be offered in a flexible manner and could allow people to gain important skills without taking a considerable period away from the labour market.
- 2020 Cost: €100m
Budget 2021 saw a total investment of €118.5 million from the National Training Fund to upskill and reskill people affected by the impacts of the pandemic and in areas of key skills priorities, particularly climate action. Key features of Budget 2021 include:
To fund the completion of courses that were provided for in the July Jobs Stimulus for 19,000 learners. Reflecting the needs of those displaced by the pandemic, this significant activation initiative was developed by SOLAS and the ETBs to deliver a blend of full time and part time training to help people gain skills in key growth areas.
This provided the final payment to Employers for the apprentices taken on under the July Jobs Stimulus Apprenticeship Incentivisation Scheme. In this scheme Employers were paid €2,000 on the successful registration of a new apprentice with a further €1,000 to be paid in the following year to support retention.
To provide for the continuation of this scheme in 2021 for an additional 2,000 learners who are seeking employment, particularly those displaced by the impact of Covid-19.
To provide for an additional 1,600 places for upskilling and reskilling those in employment, particularly in vulnerable areas.
To provide for the further roll out of the activation scheme for those seeking employment which was announced as part of the July Jobs Stimulus and also a new climate action upskilling scheme. In total, an additional 5,000 places were provided for upskilling and reskilling opportunities through Skillnet Ireland.
To provide 1,500 additional places to meet the high levels of demand for Springboard+ courses.
To provide places on new specialist retrofitting training courses around the country and for the expansion of existing provision in this area.
To provide for the extension of the incentivisation scheme for the first half of 2021 in which paid employers paid €3,000 to take on a new apprentice and retain them.
Due to the Covid-19 pandemic and the associated centre closures, the number of apprenticeship blocks that could be run in 2020 was reduced. €12m was required in 2021 to fund 2,000 apprenticeship places required to catch up on the lost provision in 2020 and to mitigate against the effect of smaller apprenticeship class sizes.
Table 6 below outlines the Budget 2021 allocation for each of the NTF recipient schemes and compares the 2021 allocation with the initial 2020 allocation and the final 2020 allocation, taking into account the July Stimulus.
- January 2020 Allocation €'000: 172,373
- Final 2020 allocation with July Jobs Stimulus €'000: 184,373
- 2021 Budget Allocation €'000: 198,373
- Difference between final 2020 and 2021 budget allocation €'000: 14,000
Difference takes account of apprenticeship incentivisation in 2020 and 2021 as well as the Covid costs for additional classes in 2021.
- January 2020 Allocation €'000: 148,352
- Final 2020 allocation with July Jobs Stimulus €'000: 185,852
- 2021 Budget Allocation €'000: 148,352
- Difference between final 2020 and 2021 budget allocation €'000: -37,500
Once off provision made to HE courses under July Jobs Stimulus; base figure remains the same.
- January 2020 Allocation €'000: 35,898
- Final 2020 allocation with July Jobs Stimulus €'000: 38,898
- 2021 Budget Allocation €'000: 40,898
- Difference between final 2020 and 2021 budget allocation €'000: 2,000
€5m increase in budget from base, the difference is net of once off provision of €3m in July Jobs Stimulus.
- January 2020 Allocation €'000: 20,300
- Final 2020 allocation with July Jobs Stimulus €'000: 20,300
- 2021 Budget Allocation €'000: 23,300
- Difference between final 2020 and 2021 budget allocation €'000: 3,000
Increases for additional places in Budget.
- January 2020 Allocation €'000: 130,189
- Final 2020 allocation with July Jobs Stimulus €'000: 167,689
- 2021 Budget Allocation €'000: 207,288
- Difference between final 2020 and 2021 budget allocation €'000: 39,599
The difference is net of July Jobs Stimulus in 2020 and the carryover costs in 2021, the Skills to Compete in Budget and the retrofitting training.
- January 2020 Allocation €'000: 900
- Final 2020 allocation with July Jobs Stimulus €'000: 900
- 2021 Budget Allocation €'000: 1,020
- Difference between final 2020 and 2021 budget allocation €'000: 120
Increase provision for immediate demand of Training Links Learner Networks, leadership development and preparation of digital delivery post Covid
- January 2020 Allocation €'000: 34,438
- Final 2020 allocation with July Jobs Stimulus €'000: 48,438
- 2021 Budget Allocation €'000: 41,438
- Difference between final 2020 and 2021 budget allocation €'000: -7,000
Springboard received once off July Jobs Stimulus funding in 2020 plus an additional once off allocation from HCI. The Budget figure of €7m is an increase on the base figure.
- January 2020 Allocation €'000: 3,073
- Final 2020 allocation with July Jobs Stimulus €'000: 3,073
- 2021 Budget Allocation €'000: 3,204
- Difference between final 2020 and 2021 budget allocation €'000: 131
Increased provision for Regional Skills Fora
- January 2020 Allocation €'000: 60,000
- Final 2020 allocation with July Jobs Stimulus €'000: 56,000
- 2021 Budget Allocation €'000: 60,000
- Difference between final 2020 and 2021 budget allocation €'000: 4,000
No change from the base, however some HCI funds went to support additional Springboard in 2020
- January 2020 Allocation €'000: 250
- Final 2020 allocation with July Jobs Stimulus €'000: 250
- 2021 Budget Allocation €'000: 400
- Difference between final 2020 and 2021 budget allocation €'000: 150
Increasing Digital skills and ICT capacity plus development of renewable energy technologies for training.
| National Training Fund Recipients | January 2020 Allocation €'000 | Final 2020 allocation with July Jobs Stimulus €'000 | 2021 Budget Allocation €'000 | Difference between final 2020 and 2021 budget allocation €'000 |
| DEASP | 6,700 | 6,700 | 6,700 | 0 |
| Training grants to industry (IDA and Enterprise Ireland) | 6,500 | 6,500 | 6,500 | 0 |
| Regional Skills Innovation | 800 | 800 | 800 | 0 |
| European Globalisation Fund | 50 | 50 | 50 | 0 |
| Traineeships in employment | 2,900 | 2,900 | 2,900 | 0 |
- January 2020 Allocation €'000: 622,723
- Final 2020 allocation with July Jobs Stimulus €'000: 722,723
- 2021 Budget Allocation €'000: 741,223
- Difference between final 2020 and 2021 budget allocation €'000: 18,500
- Difference between original 2020 allocation and proposed 2021: €118.5m
In response to the liquidation of Debenhams Ireland in 2020, the Government established a €3m Training Fund to assist the reskilling of former Debenhams employees. Endorsed by the former workers in May 2021, and modelled on the previous European Globalisation Adjustment Fund programmes which provided assistance in cases of large scale redundancies, the Debenhams Training Fund is funded by the NTF and is administered by SOLAS.
Under the scheme, SOLAS will provide personalised advice and guidance to the former workers and financial supports are available for additional services such as occupational guidance and career planning support, privately provided accredited educational programmes and course expense contributions. The level of demand for support from, and the operation of, the Fund is being monitored by an Advisory Committee, which includes representatives of Mandate and SIPTU on behalf of the former workers, established to support the implementation of the Fund.
In October 2021, the former Debenhams workers were advised to contact SOLAS to avail of the Fund. By December 2021, 479 former workers (of the 954 in the collective redundancy notice) contacted SOLAS registering their interest in the Fund. SOLAS hosted seven group briefing sessions to provide information on the services and supports available to the former workers.
By end 2021 applications for financial support had been received from 30 former workers and payments made of some €32,000, with the expectation that applications would increase in the weeks following the group briefing sessions and as eligibility checks were confirmed. As proposed, the Fund will operate for two years from 1st November 2021 or until fully expended, if earlier.
SOLAS created a dedicated webpage for the Debenhams Fund. The supports available include:
- A career transition grant of up to €1,000 for occupational guidance and career planning supports from private guidance specialists as required.
- Training grants towards privately provided programmes accredited by industry bodies or by Quality and Qualifications Ireland (QQI) where similar programmes are not readily or speedily available through the public system, up to a general limit of €5,000 for higher education and €3,000 for further education training programmes.
- Course expense contributions towards the costs of travel, materials and equipment, up to a €3,000.
- A weekly contribution of €100 towards childcare costs to facilitate attendance at upskilling programmes.
- Recoupment of costs already incurred to support individual upskilling up to €1,500.
The NTF Levy is collected by the Revenue Commissioners as part of the PRSI collection system. The collected funds are included in the transfer of gross PRSI from the Revenue Commissioners to the Social Insurance Fund of the DSP. Each year DSP undertakes an apportionment exercise to analyse PRSI collection data and to apportion funds to the Social Insurance Fund, the Health Levy and the NTF.
The NTF also receives income from the European Social Fund (ESF) in respect of ESF co-financed activities that have been pre-financed from the NTF. The level of ESF receipts to the NTF in any year depends on the amounts certified to and reimbursed by the Commission in that year in respect of NTF funded activities
Table 7 shows the actual income for 2019-2021 and projected income for 2022 from PRSI and ESF.
| 2019 Actual €’000 | 2020 Actual €’000 | 2021 Actual €’000 | 2022 Forecast €’000 | |
| NTF Levy | 712,000 | 716,750 | 797,250 | 851,240 |
| ESF | 61,811 | 1,500 | 82,000 | 2,500 |
| Total Projected income | 773,811 | 718,250 | 879,250 | 853,740 |
- PRSI receipts from 2022 onwards forecasted by DSP at Budget 2022, ESF 2022 income as at Revised Estimates 2022, Income from ESF 2023 onwards based on Budget 2023 Forecast.
- Total Projected income 2022 Forecast as set out in the Revised Estimates for Public Services 2022.
There has been very substantial growth in NTF spending in recent years on the basis of the 0.3% increase in the training levy between 2018 and 2020 with expenditure increasing by €207 million in this timeframe.
The accumulated surplus in the NTF has previously been critical in maintaining expenditure levels, particularly in the provision of training of those seeking employment in recession years when NTF income declined. The surplus was important in resourcing €100m for the July Jobs Stimulus and to increasing investment of €118.5m in Budget 2021 in skills and training priorities arising from the pandemic.
The surplus in the NTF at the end of 2019 amounted to €740.1 million. This surplus grew by €77 million in 2020 and by €285 million in 2021, leaving an end of year surplus of €1.1 billion in 2021. This surplus is driven by a number of factors including income being higher than forecast and savings arising on NTF related expenditure due to the Covid-19 pandemic in 2021. Table 8 below sets out the projected surplus out to 2022.
| 2019 Actual | 2020 Actual | 2021 Actual | 2022 Forecast | |
| Total Projected Income | 773,811 | 718,250 | 879,250 | 853,740 |
| Expenditure | 507,073 | 640,888 | 594,188 | 765,073 |
| Surplus brought forward at 1 January | 473,364 | 740,102 | 817,464 | 1,102,526 |
| Surplus carried forward as at 31 December (projected) | 740,102 | 817,464 | 1,102,526 | 1,191,193 |
- 2022 Forecast as set out in the Revised Estimates 2022.
In accordance with the terms of NTF Act, the surplus remains in the accounts of the NTF for possible reinvestment in other eligible training activity. The surplus is included in the calculation of the General Government Debt.
There are a number of limitations on increased NTF expenditure:
- Increased investment in education and training priorities funded from the NTF requires an increase in the expenditure ceiling for DFHERIS.
- In order to comply with expenditure ceilings any increased expenditure on education and training funded from the NTF surplus must be fully offset by reduced Exchequer spending.
- While expenditure from the NTF surplus does not impact on the Exchequer balance, it increases general government expenditure and can only be considered within the fiscal strategy agreed by the Government.
