- 2022Implementation
- 2023Implementation
- 2024Implementation
Background
An outcome-based funding model for further education and training (FET) was the key objective of the first FET strategy 2014-19. The second FET strategy, Future FET: Transforming Learning 2020-24, commits to providing easier access and simplified pathways to learners, in addition to a consistent learner's experience and a more powerful identity for VET, which are only possible via a modified funding approach.
The current model is largely driven by established costs and an overly complex 34-programme structure, on which a micro-budgeting and funding allocation system is based. Education and training boards (ETBs, statutory FET providers) are required to predict demand by estimating learner numbers whereas the new funding system is to be driven by the previous years' activity.
This approach will ensure that all 16 ETBs have more autonomy and flexibility and strategically deliver FET that meets the needs of their regions.
Objectives
To devise a FET funding system that is 'future-proofed', transparent, operationally effective for both, funders and FET providers, offering value for money for the Irish taxpayer, and able to ensure inclusion and equal access to FET for everyone.
Description
The process of review started in 2019 with the agreement on the guiding principles and approach. An international expert panel was appointed, with an internal funding model review advisory group and data modelling working group established to support the panel's work.
The review panel had to review the existing approach to funding ETBs to deliver FET by SOLAS in terms of its effectiveness in delivering on national objectives, facilitating ETB flexibility and autonomy in responding to regional needs, ensuring sustainability and quality, and driving performance. In addition, the Panel had to identify and consider options how that approach could be developed to reflect the core principles that must underpin the future FET funding. Lastly, it had to make recommendations on an appropriate future approach to funding the sector, and on an implementation timeframe with moderating mechanisms to ensure a smooth transition avoiding any sudden or significant changes to current funding levels.
A detailed engagement plan was designed to ensure robust consultation with all stakeholders at crucial stages throughout the review process. Although the consultation process was initially stalled by the COVID-19 pandemic in March 2020, consultations quickly moved online; the consultation process lasted from February 2020 till March 2021. Consultation included bilateral meetings, written submissions, an anonymised survey, focus groups and detailed...
The process of review started in 2019 with the agreement on the guiding principles and approach. An international expert panel was appointed, with an internal funding model review advisory group and data modelling working group established to support the panel's work.
The review panel had to review the existing approach to funding ETBs to deliver FET by SOLAS in terms of its effectiveness in delivering on national objectives, facilitating ETB flexibility and autonomy in responding to regional needs, ensuring sustainability and quality, and driving performance. In addition, the Panel had to identify and consider options how that approach could be developed to reflect the core principles that must underpin the future FET funding. Lastly, it had to make recommendations on an appropriate future approach to funding the sector, and on an implementation timeframe with moderating mechanisms to ensure a smooth transition avoiding any sudden or significant changes to current funding levels.
A detailed engagement plan was designed to ensure robust consultation with all stakeholders at crucial stages throughout the review process. Although the consultation process was initially stalled by the COVID-19 pandemic in March 2020, consultations quickly moved online; the consultation process lasted from February 2020 till March 2021. Consultation included bilateral meetings, written submissions, an anonymised survey, focus groups and detailed pilot workshops with the stakeholder groups.
The following took part: Department of Education and Skills, Department of Public Expenditure and Reform (DEPR), Department of Employment and Social Protection (DEASP), ETBs and national representative group ETBI, Adult Learning Association (AONTAS), Teachers Union of Ireland (TUI), Irish Business and Employers Confederation (IBEC), ETB pilot projects. National survey took place in June 2020, learner focus groups in January 2021 and final report consultations in June-July 2021. In February-March 2021, the expert panel tested some initial modelling and assumptions in a pilot with nine ETBs.
In June 2022, the final Funding Review report was announced by the Minister for Further and Higher Education Research Innovation and Science (DFHERIS). The Minister also announced the setup of an implementation group for the new funding model, with representatives from DFHERIS, the DEPR, SOLAS, the ETBs and learner, staff and employer representatives. The group started its work.
During 2023, a steering group, chaired by SOLAS, was convened to oversee the implementation of the new funding model.
The work of the steering group continued towards the implementation of the new funding model.
Bodies responsible
- Further Education and Training Authority (SOLAS)
- Department of Further and Higher Education, Research, Innovation and Science (DFHERIS)
- Cavan Monaghan Education and Training Board (CMETB)
- City of Dublin Education and Training Board (CDETB)
- Donegal Education and Training Board (DETB)
- Dublin Dun Laoghaire Education and Training Board (DDLETB)
- Galway Roscommon Education and Training Board (GRETB)
- Kerry Education and Training Board (KETB)
- Kildare Wicklow Education and Training Board (KWETB)
- Kilkenny Carlow Education and Training Board (KCETB)
- Laois Offaly Education and Training Board (LOETB)
- Limerick Clare Education and Training Board (LCETB)
- Longford Westmeath Education and Training Board (LWETB)
- Louth Meath Education and Training Board (LMETB)
- Mayo Sligo and Leitrim Education and Training Board (MSLETB)
- Cork Education and Training Board (CETB)
- Tipperary Education and Training Board (TETB)
- Waterford Wexford Education and Training Board (WWETB)
Target groups
Learners
- Learners in upper secondary, including apprentices
- Young people (15-29 years old)
- Young people not in employment, education or training (NEETs)
- Learners with migrant background, including refugees
- Learners at risk of early leaving or/and early leavers
- Learners with disabilities
- Adult learners
- Older workers and employees (55 - 64 years old)
- Unemployed and jobseekers
- Persons in employment, including those at risk of unemployment
- Low-skilled/qualified persons
- Learners from other groups at risk of exclusion (minorities, people with fewer opportunities due to geographical location or social-economic disadvantaged position)
Education professionals
- Guidance practitioners
Entities providing VET
- VET providers (all kinds)
Other stakeholders
- Social partners (employer organisations and trade unions)
- National, regional and local authorities
Thematic categories
Governance of VET and lifelong learning
This thematic category looks at existing legal frameworks providing for strategic, operational – including quality assurance – and financing arrangements for VET and lifelong learning (LLL). It examines how VET and LLL-related policies are placed in broad national socioeconomic contexts and coordinate with other strategies and policies, such as economic, social and employment, growth and innovation, recovery and resilience.
This thematic category covers partnerships and collaboration networks of VET stakeholders – especially the social partners – to shape and implement VET in a country, including looking at how their roles and responsibilities for VET at national, regional and local levels are shared and distributed, ensuring an appropriate degree of autonomy for VET providers to adapt their offer.
The thematic category also includes efforts to create national, regional and sectoral skills intelligence systems (skills anticipation and graduate tracking) and using skills intelligence for making decisions about VET and LLL on quality, inclusiveness and flexibility.
This thematic sub-category refers to the ways VET is funded at the system level. Policies include optimisation of VET provider funding that allows them to adapt their offer to changing skill needs, green and digital transitions, the social agenda and economic cycles, e.g. increasing the funding for VET or for specific programmes. They can also concern changing the mechanism of how the funding is allocated to VET schools (per capita vs based on achievement or other criteria). Using EU funds and financial instruments for development of VET and skills also falls into this sub-category.
This thematic sub-category refers both to formal mechanisms of stakeholder engagement in VET governance and to informal cooperation among stakeholders, which motivate shared responsibility for quality VET. Formal engagement is usually based on legally established institutional procedures that clearly define the role and responsibilities for relevant stakeholders in designing, implementing and improving VET. It also refers to establishing and increasing the degree of autonomy of VET providers for agile and flexible VET provision.
In terms of informal cooperation, the sub-category covers targeted actions by different stakeholders to promote or implement VET. This cooperation often leads to creating sustainable partnerships and making commitments for targeted actions, in line with the national context and regulation, e.g. national alliances for apprenticeships, pacts for youth or partnerships between schools and employers. It can also include initiatives and projects run by the social partners or sectoral organisations or networks of voluntary experts and executives, retired or on sabbatical, to support their peers in the fields of VET and apprenticeships, as part of the EAfA.
Subsystem
Further reading
Country
Type of development
Cedefop, & ReferNet. (2025). Further Education and Training (VET) Funding Model Review: Ireland. In Cedefop, & ReferNet. (2025). Timeline of VET policies in Europe (2024 update) [Online tool].
https://www.cedefop.europa.eu/lv/tools/timeline-vet-policies-europe/search/45194