National Training Fund - Ireland

Source: Department of Enterprise, Trade and Employment

New legislation providing for the financing of training in Ireland was introduced late in the year 2000. The National Training Fund Act, 2000 represents a change in the way the training of people in and for employment is funded. The Fund, based on a levy of employers' social insurance contributions, replaces the previous sectorally based levies - the Apprenticeship Levy and the Levy Grant schemes which ceased in the financial year 1999/2000.

The Fund is resourced by a levy on employers of 0.7% of reckonable earning in respect of employees in Class A and Class H employments. This represents approximately 75% of all insured employees.

The Fund will support a range of schemes aimed at raising the skills of those in employment and providing training for those seeking employment. These employment training initiatives include company-specific and sectoral training programmes, apprenticeships and traineeships and employment-related training programmes for the unemployed.

A significant feature of the Act is the provision for consultation with employer and employee representatives. A National Training Advisory Committee will be established to facilitate this consultation process and to ensure that national training policy is responsive to the needs of enterprises. The Committee will advise of emerging trends and needs in relation to training and will help ensure a
co-ordinated approach to the delivery of enterprise training.

The Fund supports a range of training schemes operated by FAS, Enterprise Ireland, IDA Ireland, Shannon Development and Skillnets. It is envisaged that the Fund will also support new initiatives in the area of lifelong learning.

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