I propose to take Questions Nos. 793 and 795 together.
An Annual Student Contribution (ASC) is levied on all who attend Institutes of Technology (IoTs) and Technological Universities. The amount of ASC charged to apprentices is calculated on a pro-rata basis according to the time that they spend in the institution during the academic year. In cases where training is delivered in an Education and Training Board there is no contribution required from the apprentice.
For craft apprenticeships, the ASC charged is typically one third of the €3,000 ASC paid by students attending for the full academic year and so amounts to approximately €1,000 per apprentice per period spent in the IoT or Technological University. In the case of consortia-led apprenticeships the contribution varies for each programme as off-the-job training has a more flexible structure, ranging from periods of block release to one day per week or remote learning options.
Across both craft and consortia led apprenticeships, based on latest full year figures, if the ASC was removed, then the cost to the State is estimated at an average €267 per apprentice per annum.
The 2022 year-end population of craft apprentices was 22,429, representing a potential annual cost to the Exchequer of €6m. For the 3,896 consortia-led apprentices the potential annual cost to the Exchequer of €1m.
On 25 May, I hosted a stakeholder event to hear directly from those who will be impacted through the measures that will be announced in Budget 2024. A non-exhaustive list of options to be considered in advance of Budget 2024 will be published ahead of budget day.
The options that will be contained in this paper are intended to identify the cost of different measures, such as the costs associated with reducing the student contribution.