This article covers public funding for education for adults aged 19+, and for apprenticeships, traineeships and youth training programmes, which are available for young people from the age of 16. It also covers funding for 16- to 19-year-olds following general or vocational education courses in further education (FE) colleges. The funding of general and vocational education for 16- to 19-year-olds in school sixth forms is covered in the article on ‘Early Childhood and School Education Funding’.

Northern Ireland’s six further education (FE) colleges are at the centre of provision. Programmes are also delivered by private training providers and employers, often working in partnership with the FE colleges to offer a wide range of academic, vocational and leisure / recreational courses for adults.

Policy for funding adult education and training, further education, and employment and skills programmes in Northern Ireland falls within the remit of the Department for the Economy (DfE). Public funding is made available for adults to:

• gain nationally recognised qualifications 
• help them improve their essential skills (literacy, numeracy and ICT)
• help them improve their skills to make a successful transition into the labour market or to progress to higher level education or training
• undertake apprenticeships and gain recognised qualifications in the workplace.

Depending on the learner and type of programme, some adult learners are entitled to full government funding, which means that no tuition fees are charged, while some programmes are partly government funded. Other learners, or their employers, have to meet the full cost of their programmes.

Financial support for adult learners is provided through further education awards and grants, and loans, and through Education Maintenance Allowances (EMAs).

Main funding principles

The funding of adult education and training falls within the remit of the Department for the Economy (DFE). Funding is provided in accordance with policy objectives for the further education sector and for employment and skills set by the Northern Ireland Executive.

Funding priorities 

Further Education Means Success, the (2016) Northern Ireland strategy for further education, sets out a dual role for the system of further and adult education:

• taking a pivotal role in developing a strong and vibrant economy through the development of professional and technical skills
• supporting social inclusion by providing those with low or no qualifications, or other barriers to learning, with the skills and qualifications needed to find employment and become economically active.

To fulfil this role, further education (FE) colleges are expected to work collaboratively with other organisations in the public, private, voluntary and community sectors to deliver services to learners, employers and communities to maximum effect. The aim is to achieve the strategic objectives of:

• supporting regional economic development and providing the skills necessary for the knowledge-based economy
• increasing participation and widening access to those previously under-represented in the sector
• improving the quality of provision and enhancing standards of performance.

According to this 2016 study on the Economic Impact of Northern Ireland’s FE Sector on the Economy, of the almost 130,000 people studying in Northern Ireland’s FE colleges in the 2013-14 academic year:

• 83% were taking FE courses, including in the essential skills of literacy, numeracy and ICT
• 9% were taking higher education courses
• the remaining 8% were studying on other courses such as recreational or leisure courses.

Funding for FE colleges and their partner organisations comes from government grants, other education contracts, and tuition fees. In the 2013-14 academic year, the FE sector had a total income of £254 million (€231.36 million*), of which:

• government grants accounted for 71%
• other education contracts accounted for 16%
• tuition fees accounted for 7%.

Other income was earned from the delivery of services such as residences and catering and conference business.

*Exchange rate used €1 = £0.91, 15 December 2020.

Mechanisms for allocating public funds 

Recurrent block grant funding for FE colleges 

Further education (FE) colleges in Northern Ireland receive recurrent funding for the provision of further and adult education from the Department for the Economy (DfE) in the form of a block grant.

A new outcome Based Accountability (OBA) funding model is being introduced in line with the draft Programme for Government (PfG) and the January 2016 strategy for further education, Further Education Means Success. The new funding model is focussed more on impact and is intended to:

• support colleges to deliver the strategy and work with other providers of further and adult education in delivering it
• support a sustainable further education sector

• align with the funding models for other DfE programmes, in particular apprenticeships and youth training (e.g. Training for Success) (see the subheadings ‘Funding for apprenticeships’ and ‘Funding for employability programmes’ below).

Funding for apprenticeships 

The Department for the Economy (DfE) provides some support for costs associated with apprenticeships.

Apprenticeships are programmes for individuals (aged 16+) to gain technical knowledge, job-specific skills, practical experience and professional qualifications for their immediate jobs and future careers. Apprentices are new or existing employees. The employer pays their salary and funds the costs of their on-the-job training. The DfE makes a contribution to the off-the-job training costs. Off-the-job training is provided by approved training providers.

For apprentices aged 16-24, the DfE pays the full cost of the off-the-job training. It also pays the full costs of the off-the-job-training for apprentices on higher level (4 to 6) apprenticeships. For those aged 25 and over, the DfE provides 50% of the off-the-job training costs for apprentices undertaking apprenticeships in priority sectors such as business services specifically ICT; financial services; food and drink manufacturing; advanced manufacturing; advanced engineering health sciences; and the creative industries.

The UK-wide Apprenticeship Levy, introduced in April 2017 to assist in funding the cost of apprenticeships, applies to employers in Northern Ireland with an annual pay bill of more than £3 million (€3.34 million*). The Levy is charged at 0.5% of the employer’s pay bill and employers receive an allowance of £15,000 (€13663.13*) to offset against their Levy payment. The DfE provides further information on apprenticeships and the Apprenticeship Levy.

The DfE intends to introduce a new system of government-funded traineeships for 16- to 24-year-olds. These will be Level 2 qualifications, intended for young people who have not yet secured employment, or who are undecided about their preferred occupation or career. Since these were introduced in Spetember 2020, apprenticeships will only be available from Level 3.

*Exchange rate used €1 = 0.91, 15 December 2020.

Funding for employability programmes 

The Department for the Economy (DfE) also funds a range of programmes intended to develop skills for employment.

• Training for Success, through which the DfE funds approved training providers to provide training programmes for young people aged 16-17 (or up to age 22 if they have a disability, or aged 24 for those who have previously been in the care of the public authorities). Training for Success supports the dual policy objective for further and adult education of developing occupational knowledge and employability skills, at the same time as addressing essential skills barriers. It aims to contribute to a rise in the population with Level 1 and Level 2 qualifications, and enable young people to gain the skills and vocationally related, professional and technical qualifications to gain employment or progress to further training.
• Essential skills courses aim to improve skills in reading, writing, speaking, listening, working with numbers, and use of computers and technology.
• Bridge to Employment is a pre-employment, customised training programme to help unemployed adults (over the age of 18) to gain the skills to compete for new employment opportunities.
• Steps 2 Success is a mandatory employment programme for those aged 18-24 who have been unemployed and claiming benefits for more than nine months, and those aged 25+ who have been unemployed and claiming benefits for 12 months or more. The individually tailored programme aims to help build the skills and experience needed to find and keep a job.   
• The Assured Skills Training Programme is open to adults who are unemployed or under-employed, to graduates and to those with experience who would like to change direction in their career. It provides customised training to give participants the skills needed to compete for new employment opportunities.

Further information is available from the DfE training programmes page.

There is also the Work Experience Programme, aimed at developing the employability skills of those who are unemployed. It provides short work placements of between two and eight weeks with local employers.

Capital expenditure 

The Department for the Economy’s Further Education Capital Projects Team works closely with further education (FE) colleges to maintain, develop and improve college campuses / premises across Northern Ireland. The aim is to ensure that college buildings, facilities and equipment are capable of meeting delivery needs and demand for quality services. Government capital investment is delivered through conventional major works projects, public private partnerships (PPP) and other procurement routes identified by the Department of Finance. The Further Education Capital Projects Team also distributes capital programme funds to colleges for minor works to address deficiencies identified in the estates.

Proposals for large-scale individual capital projects or acquisitions are normally considered within the college development planning process. All colleges are expected to have an ‘estates strategy’ which links closely to their corporate strategy and development plan.

The DfE issued revised guidance for FE colleges on developing an estate strategy in February 2018.

European funds 

In funding adult education and training, the Department for the Economy (DfE) has also made use of the European Social Fund (ESF), in particular to support projects aimed at raising skills and job prospects.

The strategic aim of the ESF programme 2014-2020 in Northern Ireland was to combat poverty and enhance social inclusion, by reducing economic inactivity and increasing the skills base of those currently in work and future potential participants in the workforce. The ESF in Northern Ireland consequently funded activity to enhance and extend employment opportunities, focusing on disadvantaged groups, young people aged 16-24 who are unemployed and / or not in education or training, and people with disabilities. It also part-funds the apprenticeships and youth training programmes. The DfE provides further information. This funding will cease at the end of the UK’s EU exit transition period in January 2021.

Financial autonomy and control 

The Department for the Economy (DfE) has drawn up a management statement and financial memorandum, which sets out the terms and conditions under which it makes funding available to individual further education (FE) colleges. This establishes the framework to ensure that funds are used effectively and efficiently and for the purpose for which they have been allocated. It also sets out the respective responsibilities of the DfE and the college’s governing body with regard to planning, budgeting and control of resources.

The governing body is responsible for ensuring that public funds are used only in accordance with the terms of the Further Education (Northern Ireland) Order 1997, the management statement and financial memorandum, and any additional conditions which the DfE attaches to its funding. The college governing body is also responsible for meeting the conditions attached to income received from any contracts entered into with other bodies.

The FE Colleges’ Audit Code 2018 sets out requirements in relation to the funding and audit function of FE colleges, and the principles by which the governing body undertakes its responsibilities are set out in the Further Education Code of Governance. In addition, the April 2019 Guide for Governors of Further Education Colleges provides information and advice for governing bodies on their financial and other responsibilities.

Fees paid by learners 

Courses offered in further education (FE) colleges may be provided free of charge, depending on the learner and programme. Courses which are normally free include:

• essential skills courses in literacy and numeracy and ICT
• courses which lead to a first full Level 2 qualification, such as GCSEs
• courses which lead to a first full Level 3 qualification, such as A levels or equivalent qualifications (for learners aged 25 or under).

Learners in receipt of certain government benefits or types of financial support, and their dependants in some cases, may also get free tuition for a range of courses.

Training and learning for work is also often available free of charge to learners under government-funded employability programmes, such as Training for Success, Bridge to Employment and apprenticeships (see the subheading ‘Mechanisms for allocating public funds’). These programmes aim to help young people and adults improve their skills to make a successful transition into the labour market and / or to gain recognised qualifications in the workplace.

Other programmes may be partly government-funded, with individual learners or their employers making a contribution towards tuition fees / course costs.

Some courses receive no government funding support and learners (or their employers) have to meet the full cost of their studies.

Where tuition fees are charged, these are set by individual institutions.

Financial support for adult learners 

There is a range of financial support available for learners in further and adult education. There is no tax relief (tax allowance/exemptions) for learners or their parents or families.

Education Maintenance Allowances 

The ’Money to Learn’ Education Maintenance Allowance (EMA) is a means-tested (income-assessed) allowance of £30 (€27.33*) per week for 16- to 19-year-olds who are enrolled on eligible courses in a further education college. Courses include those up to and including Level 3, but outside of higher education.

The EMA is intended to help cover day-to-day costs such as travel, books and equipment. It is also payable to learners continuing in full-time post-16 education in school sixth forms. See the article on ‘Early Childhood and School Education Funding’.

Young people aged 16+ on the Training for Success programme are also entitled to an EMA. The Training for Success EMA of £40 (€36.44*) per week is not income-assessed.

Further education awards and grants 

Further education awards may be available to learners aged 19+ who are required to pay fees and need assistance with this. The income-assessed awards are distributed by the Education Authority and are available for full- and part-time courses leading to qualifications up to and including Level 3..

Learners may also be eligible for income-assessed maintenance grants to help with living costs, or for a Childcare Grant if they are using registered or approved childcare.

These awards and grants are non-repayable. The Education Authority produces a Further Education Awards Booklet which explains the awards and grants in more detail.

Professional and Career Development Loans

Learners aged 18 or over on courses of vocational education and training could previously apply for a Professional and Career Development Loan if they did not qualify for any other support. The courses did not have to lead to a qualification and could be full- or part-time. The loans were available UK-wide from banks; the Government paid the interest on the loan while a learner was studying or training, and for up to a month after they had completed their course. Learners could borrow between £300 (€273.26*) and £10,000 (€9108.75*) and the loan covered up to 80% of their course fees if they were in work; 100% if they had been unemployed for three months before applying. The loans could also cover course-related costs such as books and other course materials, or living expenses in the case of learners on full-time courses.

The Professional and Career Development Loan scheme closed for new applications in January 2019.

Other forms of support         

Individual further education (FE) colleges also provide hardship funds. These are intended to help learners who are experiencing significant financial difficulty which may prevent them attending their course.

Parents aged between 16 and 20 attending an FE college may also be entitled to financial help towards childcare costs through the Care to Learn scheme. They must not be receiving the Childcare Grant (see the subheading ‘Further education awards and grants’ above), or other forms of support, to be eligible. The nidirect website provides further information on the support available.

A range of support is also available to enable young people and adults with disabilities to benefit from further education. The nidirect website provides further information.

*Exchange rate used €1 = £0.91 15 December 2020.

Subsidies for private providers 

Most adult education and training in Northern Ireland is provided by further education colleges, which are classified as (executive) non-departmental public bodies, or by private training providers (in particular for work-based training programmes). As described in the previous sections of this article, these providers may receive some public funding in respect of this provision. They may also provide full-cost courses, funded only by tuition fees.

Employers may also receive some government funding in respect of employees taking part in specific employability and skills programmes.

Article last reviewed December 2020.