Expanding financial support for CVET and advanced vocational qualifications

The Qualification Opportunities Act (Qualifizierungschancengesetz) came into force on 1 January 2019.

The AFBG (Meister-/Aufstiegs-BAföG) was revised in 2019 (previously in 2016) and is due to come into force on 1 August 2020 with comprehensive modernisation and improved benefits. The amendment of the AFBG aims to expand public funding for VET students who want to acquire higher VET qualifications, i.e. VET at tertiary education level. In future, it should be possible to receive subsidies for all levels of advanced training regulated by the Vocational Training Act (BBiG). The 2019 amendment is a further step in improving the attractiveness and excellence of the VET pathway and its equivalence to academic education. In 2019, the AFBG supported 167 040 people in participating in advanced VET.

The amendment to the Upgrading Training Assistance Act (AFBG) came into force on 1 August 2020.

The new portal AufstiegsBAföG - Karriere inklusiv presents the amended Upgrading Training Assistance Act (AFBG), also called AufstiegsBAföG - BaföG for vocational advancement, and all its facets. It explains who can apply for funding, how to get funding, gives examples of beneficiaries, and features a blog with information.

In 2020, new posters, postcard and brochure on the amended AFBG were produced for an advertising campaign.

The budget allocation for AFBG in 2021 is approximately EUR 537 million (78% Federal Government + 22% Länder).

In 2021, the funding instruments continued.

The Federal Statistical Office (Destatis) reported in 2021 that, on the basis of the AFBG, around 178 000 people were supported nationwide with training, continuing education or other measures in 2020, the year of COVID-19. That was 11 000 more people than in 2019 - an increase of 7%. The amount of funding with which people were supported - a mixture of grants and loans - increased by 13% compared to the previous year: in 2020, it amounted to EUR 783 million.

From 2020, the Act to promote continuing vocational training in the face of structural change and to further develop training Assistance (the Work of Tomorrow Act) further expanded financial assistance for continuing training on the basis of the Qualification Opportunities Act and also improved funding opportunities for companies, such as the WEITER.BILDUNG programme, which is implemented by the Federal Employment Agency. A report by the Institute of Employment Research (IAB) from 2021 makes it clear that about 9% of enterprises have applied for a CVET subsidy so far. They were partially or fully reimbursed for training costs and/or paid wage subsidies for the period of leave.

In 2022 the funding instruments continued.

The Federal Statistical Office (Destatis) reported in 2022 that, on the basis of the AFBG, around 192 000 people were supported nationwide in 2021, an increase of 8% compared to 2020. Total funding amount increased by 21%. The funding of the AFBG supports participants in vocational advanced training measures by providing financial assistance to cover training measures and living costs to acquire tertiary level qualifications. Proportion of women among those funded increased to 43%. In 2021, as in the previous year, state-recognised nursery school teachers were the most frequently funded occupation with a further training measure. Their number rose by 26% compared to the previous year. In second and third place in 2021 were the occupations of business administrator (Wirtschaftsfachwirt/-in; EQF level 6) with persons receiving support and industrial foreman (Industriemeister/-in Metall; EQF level 6) receiving support. Among men, the most frequently funded advanced training occupation was industrial foreman in metal, and among women, state-recognised educator (EQF level 6).

In 2022 the Institute of Employment Research (IAB) investigated the reluctance of companies to make use of the funding opportunities that the Qualification Opportunities Act and the Work of Tomorrow Act make available. The study found that in particular, better information for businesses and the reduction of administrative obstacles could increase take-up. Small and medium-sized enterprises (SMEs) in particular often have too few human resources to engage with the issue. Especially for large enterprises, it becomes apparent that funding is not always attractive due to the lower funding rates for them, e.g. larger companies often consider the relationship between expenditure and the expected amount of funding to be unfavourable. In addition, they often already have suitable and flexible internal or external training. They are therefore less dependent on the Federal Employment Agency's offer.

In 2023 the existing funding instruments continued and were extended.

In September 2023, the Institute of Employment Research (IAB in 13/2023) published its 2022 study on the reluctance of companies to make use of the funding opportunities made available by the Qualification Opportunities Act and the Work of Tomorrow Act. Some negative aspects described in the IAB study are addressed by the new Act to promote initial and further training, passed in July 2023 and coming into force successively until August 2024. The new law is set to create a reform of the current subsidies, e.g. with a qualification allowance. It is intended to increase transparency for the funding and thereby increase access to further training for employers and employees, as well as simplify the process for the companies and employment agencies. Employees with low skills and whose jobs are threatened by change shall particularly benefit as well as SMEs.

The Aufstiegs-BAföG (AFBG) offers funding for prospective skilled crafts Meisters, specialists, technicians, educators (EQF 6) and other career climbers with one of over 700 advanced training programmes. Up to three consecutive funding programmes are possible - step by step up to Master's level (EQF 7). As reported by the Federal Statistical Office in 2023, the AFBG supported 192 374 people in participating in advanced VET in 2022, setting a new record. In 2023, 190 100 people (44% were women) were funded under the AFBG, i.e. the number of people receiving funding fell by 2 300 or 1.2% compared to the previous year. The programme focuses on people at the beginning of their career path. The age group of 20 to 30-year-olds was therefore the largest group of all subsidised persons in 2023 with 127 100 (67%). This group was followed by people aged 30 to 40 (19%). In 2023, as in the previous year, nursery school teachers were the most funded occupation with an AFBG training measure (56 800 people). Second place was taken by master craftsmen and women in the metalworking industry (Industriemeister/-in Metall; EQF level 6) with 9 600 recipients, followed by certified business administrators (Wirtschaftsfachwirt/-in; EQF level 6) in third place with 8 900 recipients. A total of EUR 1,064 million in funding was available under the AFBG in 2023, which was 3.6% more than in the previous year.

In 2024 the existing funding instruments continued and were extended.

With the introduction of a qualification allowance in April 2024, the Act to promote initial and further training (passed in 2023) makes continuing vocational training more accessible. Fixed funding rates make CVET funding more transparent and will be accessible to all companies and employees. Employment agencies pay companies the qualification allowance for their employees, who are threatened with losing their jobs as a result of structural change, but for whom further training can enable them to find future-proof employment in the same company. The allowance will be paid instead of remuneration during training.

The Aufstiegs-BAföG (AFBG) offers funding for future skilled crafts Meisters, specialists, technicians, educators (EQF 6) and other advanced qualifications with one of over 700 advanced training programmes. The application for AFBG funding can be completed online. Some federal states already use the easy-to-use AFBG Digital application assistant for this purpose. This service is to be gradually expanded and eventually used nationwide.

On 24 July 2024, the Federal Cabinet approved improvements to the Upgrading Training Assistance Act (AFBG, so-called Meister- or Aufstiegs-BAföG). The planned improvements are intended to increase the attractiveness of the Upgrading Training Assistance Act, strengthen higher-qualification vocational training and thus the successful recruitment of skilled labour. In addition, the participation costs in AFBG-funded training programmes are to be reduced for participants. Further, from 1 August, the 29th BAföG Amendment Act will also provide AFBG recipients with more financial support and improved funding conditions.

As part of the Excellence in VET initiative, a new option for financial support is the pilot scholarship programme for talented apprentices and skilled workers (BAFF), which started in 2024. This is a double innovation: on the one hand, scholarship funding for talented professionals now also includes the early phase of training. Secondly, the organisations for the promotion of gifted academic students are opening up to vocational training. The BAFF scholarship complements the existing Upgrading scholarship (Aufstiegsstipendium) and the Continuing training grant (Weiterbildungsstipendium).