Budget 2023: Guidance for institutions on once-off 1/3 contribution to apprentice student contribution for 2022 to 2023

In line with the Budget 2023 announcement, the Government has decided to make a once-off contribution of 1/3 to the contribution paid by each eligible apprenticeship student in the academic year 2022 to 2023, as a cost of living measure.

This will reduce the amount eligible apprentices pay to their higher education institution in the academic year 2022 to 2023 by 1/3.

This once-off measure is only available to craft and consortia-led apprentices eligible in academic year 2022 to 2023.

• Atlantic Technological University
• Dundalk Institute of Technology
• Munster Technological University
• South East Technological University
• Technological University Dublin
• Technological University Shannon: Midlands Mid-West
• University of Limerick
• National College of Ireland.
• Griffith College

The Department of Further Education, Research, Innovation and Science (the Department) will provide a grant equivalent to the 1/3 reduction per eligible apprentice to institutions by 31 December 2022. This will compensate for the reduction in the student contribution.

Funding distribution

The Higher Education Authority (HEA) will distribute the initial funding of the credit based on 2022 to 2023 Term 1 agreed block provision in respect of craft apprentices and consortia-led apprentice numbers, as provided to the HEA via the institutions.

Any balancing adjustments for 2022 to 2023 eligible apprentice student numbers will be incorporated into final payments for consortia-led programmes by the end of 2022 to 2023. 2022 to 2023 Term 2 craft payments will be scheduled for the first quarter of 2023.

For craft apprenticeship 2022 to 2023 Terms 2 and 3, the institution must reflect the revised fees in the fee schedule. Similarly, for any consortia-led programmes with intakes starting in the first quarter of 2023, the institution should make appropriate revision for fee payments liable in 2022 to 2023.

The Department will compensate the institutions for the reduction in the student contribution of 1/3 per eligible apprentice for Terms 2 and 3. This will be paid to the HEA prior to the end of the second quarter of 2023 and disbursed to the individual institutions based on craft 2022 to 2023 Term 2 and 3 block allocations.

The HEA will seek a signed report from institutions that will detail the number of registered apprentices. Any balancing payments will be incorporated into Term 1 2023 to 2024. This will then be further verified with SOLAS registration when available.

Institutions will contact all apprentices due a refund. institutions will process the bulk of refunds by 31 December 2022 and any remaining refunds will be processed by 31 January 2023.

Consortia-led apprentices

institutions will apply an appropriate credit to the account of eligible consortia-led apprentice students as soon as practicable and before 30 November 2022. These apprentices do not need to contact their institution or apply for the credit. It will be automatically applied by the institution.

Craft apprentices

institutions will provide a refund to craft apprentice students. By 30 November 2022, craft apprentices should send their institution bank account details to receive a refund. This is to facilitate an electronic bank transfer before 31 January 2023. If a craft apprentice due a refund does not provide the required bank account information, the institution may need to provide a refund at a later date.

Apprentices who have not paid their fee yet

Apprentices should make payments in line with the revised 2022 to 2023 fee schedule of their institution.

Apprentices who have paid the full student contribution

Where craft apprentices have paid the full amount, the institution will pay an appropriate reduction (of 1/3 of the fee the apprentice has paid) into the bank account the apprentice nominates for the refund.

In the case of consortia-led apprentices, the institution will apply a credit to the apprentice’s account as soon as is practicable, but no later than 30 November 2022.

Where an employer has paid the full student contribution on behalf of the apprentice

The guiding principle for this initiative is to provide cost-of-living relief to apprentices using the same mechanism (relief on the student contribution) being applied to eligible higher education students.

Any contractual arrangements that may be in place between an apprentice and their employer are not considered under this measure and are strictly a matter to be resolved between those parties themselves. On that basis, the refund of fees will be made to the bank account nominated by the registered eligible apprentice.

If an apprentice drops out

Where consortia-led apprentices pay up front and then drop out, an appropriate refund will issue later next year. This is because registration records are not finalised until the second quarter of the academic year.

Where craft apprentices pay up front and then drop out, an appropriate refund will issue later next year when the HEA receives verification of registration from SOLAS. This will likely be in the first quarter of 2023.

• Details of apprentices eligible for the credit should be retained by the institutions.
• Credits applied should be accounted for accurately and transparently.
• The institution should ensure that appropriate governance and internal controls are in place in respect of these transactions.
• The initial funding of the credit will be provided via the HEA based on agreed 2022 to 2023 Term 1 blocks for craft apprentices and registration numbers on consortia-led apprenticeship programmes provided by the institution to the HEA.
• Funding provided for this measure but not ultimately used shall be returned to the Department.

Institutions shall not process the personal data of an apprentice or other person unless the apprentice or other person has consented to such processing. An apprentice or other person shall provide their consent to the processing of their personal data for the purposes of applying this measure in such manner as the institution may determine. The institutions shall process personal data for the purposes of this measure in accordance with the Data Protection Acts and the General Data Protection Regulation.

Why the Department is making the once-off contribution

Recognising the cost-of-living financial challenges facing eligible third-level students funded through the Department, including apprentices, the Minister has announced a range of measures to provide additional supports for students in 2022.

Free fees schemes

Under the Department’s free fees schemes, the Exchequer provides funding toward the tuition fee costs of eligible undergraduate higher education students, including apprentices who are attending higher education institutions (institutions) as part of their apprenticeship programmes.

Student contribution

Students pay the student contribution. The student contribution applies annually to all free fee eligible students and the current rate is €3,000 per year.

Both craft and consortia-led apprenticeship students pay an appropriate pro-rata rate which reflects the time they spend in a institution on their particular consortia-led apprenticeship programme or craft phase 4/phase 6 off-the-job training phase.