Education and employment, other areas

Education

Student grants and scholarships

From January 2010 the rates of student grants and scholarships will be reduced by 5%. It will apply to all existing and new grant-holders.

From 2010 people in receipt of the Back to Education Allowance and the VTOS allowances for those pursuing a Post-Leaving Certificate course will not be eligible for student support grants but they will not have to pay the student service charge or college fees. This will apply to all new grant-holders in 2010 onwards.

Support under the Millennium Partnership Fund is being withdrawn saving €2m.

Adult and further education

The number of places provided in Senior Traveller Training Centres (STTCs) will be reduced from 984 places to 684 places. This is in line with the Traveller Education Strategy. Travellers can continue to access the full range of adult and further education programmes across the country.

Allowances to participants in VTOS, Youthreach and STTCs will be reduced in line with the appropriate social welfare rates or FÁS trainee allowances.

Capital

€579m will be allocated to continue the significant investment being made in the school building programme, which includes €72m from the capital carry-over.

€141m is being provided for infrastructural investment in higher education of which €46m will be provided for investment under the Strategy for Science, Technology and Innovation.

€50m is being allocated to support the integration of information and communications technology in teaching and learning in schools. That includes €7m from the capital carry-over.

Higher education

The provision in 2010 for universities and institutes of technology will be €1,266m - a 4% reduction on the 2009 provision.

The funding available in 2010 for projects under the Strategic Innovation Fund will be €18m - a reduction of €8m on 2009.

Additional expenditure measures

The following measures are being provided for the implementation of commitments under the Renewed Programme for Government.

• €12m will be allocated to provide 500 extra teachers over the next three years. This allocation will allow for the employment of an extra 200 teachers starting in early 2010 and a further 150 teachers starting in September 2010.
• €14m will be allocated to provide extra teachers from September 2010 for the 2010/11 school year to meet demographic pressures and to ensure no further increase in the pupil-teacher ratio. This allocation will fund 600 posts in primary schools and 330 posts in post-primary schools.
• €19m will be provided to maintain school capitation grants at current levels and to take account of increased pupil numbers. This allocation will also enable extra funding to be allocated to schools for school books and to support curricular activities.
• The allocation for the Vocational Training Opportunities Scheme (VTOS) will be increased by €7.5m to meet additional expenditure on allowances due to the change in profile of applicants for the scheme.
• An extra allocation of €3m will be provided for the promotion of Gaeilge in schools as part of the new 20-year Strategy for the Irish Language.
• The provision for the National Educational Psychological Service (NEPS) will be increased to provide for the rise in psychologists by 28 to 210. This will allow NEPS psychologists to provide direct service to every first and second level school and an enhancement of service to special schools and units.

Teachers

The provision for teacher in-service education support will be €29.79m compared with a 2009 estimate of €40m. Restructuring of existing services will continue in 2010. Services will be focused on priority areas including special educational needs, child protection guidelines training, implementation of new procedures for underperforming teachers, and Project Maths.

The allocation for pre-service teacher education is being reduced by €3m and will be achieved by reducing the number of post-graduate conversion places.

The supply teacher scheme at primary level will cease from the start of the 2010/11 school year. Normal substitution arrangements which apply to primary schools generally to cover teacher absences will be used to cover substitution in those schools that participated in the scheme.

From the start of the 2010/11 school year, the maximum number of uncertified sick leave days allowed in the school year for teachers in primary, secondary and community and comprehensive schools will be reduced to 7 days. This is the same number of days available for teachers in vocational schools and community colleges.

School transport

The provision for school transport will be €188m compared with a 2009 estimated out-turn of €178m. While efficiencies made during 2009 will continue to yield savings in 2010, an increase of €10m will be provided which includes provision for new services as necessary.

Reduction in allocations

The following organisations will have their allocations reduced:

• National Council for Curriculum and Assessment reduced by €0.93m
• National Council for Special Education reduced by €2.3m
• Higher Education Authority reduced by €0.562m
• Dublin Dental Hospital reduced by €0.410m
• Dublin Institute for Advanced Studies reduced by €0.546m
• Royal Irish Academy of Music reduced by €0.303m
• National Qualifications Framework (NQAI, FETAC, HETAC) current allocation reduced by €2.1m

Funding will be reduced by €1.2m in 2010 for projects in Local Drugs Task Force areas in Dublin city and county. Funding provided by the Department of Education and Science for these projects will be phased out in 2011.

Employment

Allocation of resources

Nearly €136m in funding will provide an additional 26,000 individuals with training places and supports as follows:

• €56m is being made available to FÁS for short-term courses of 10/20 weeks.
• €20m will go to an Activation Fund which will involve an open call for innovative proposals that have the capacity to provide work, education and training targeted at the construction and low-skilled sectors.
• €14m is being made available, in addition to €26m from the EU, for supports to redundant workers in eligible companies under the European Globalisation Adjustment Fund.
• €9.5m is being made available as support measures for the food industry.
• Supports to employers through the Stabilisation Fund and the Temporary Employment Subsidy Scheme will cost €165m in 2010.
• In order to advance the Smart Economy there will be a single stream of funding to make Government investment in science and technology more efficient.

Employers and self-employed

• €36m will be allocated to an Employers Job Incentive Scheme giving PRSI exemption to encourage employers to take on employees. This will bring the total places available for the unemployed to over 180,000.
• The existing scheme providing a three-year exemption from tax on the income and gains of new start-up companies will be extended to include companies who commence trading in 2010.
• A credit review system will examine the credit policies and practices of the banks for all SME sectors. It will pay particular attention to sectors such as tourism where particular stresses have been reported.
• Under the Employer Jobs (PRSI) Incentive Scheme, where an employer creates a new job and takes on a person who has been unemployed for 6 months or more, the employer will be fully exempted from the liability to pay PRSI for the first year of that employment. This will give employers an 8%-10% saving on employment costs for each new job created. Full details will be announced early in 2010.

Allowances

The FÁS Training Allowance to new entrants who are not entitled to Jobseeker’s Benefit/Allowance will be discontinued.

There will also be reductions in Community Employment and Job Initiative allowances.

Other reductions will be made to:

• Funding for FÁS and Skillnets for training those in employment
• The grant for Community Employment (CE) training and materials overhead
• Part-time third-level places for FÁS
• Current non-pay funding for agencies and offices under the aegis of the Department of Enterprise, Trade and Employment and Science and Technology programmes

Other areas

Public Service

Salaries

Public service salaries will be reduced as follows:

Salaries less than €125,00 per year

• 5% on the first €30,000 of salary
• 7.5% on the next €40,000 of salary
• 10% on the next €55,000 of salary

This produces overall reductions in salaries ranging from 5% to just under 8% for salaries up to €125,000.

Salaries more than €125,00 per year

• 8% on salaries of up to €165,000
• 12% on salaries up to €200,000
• 15% on salaries of €200,000 or more.

These reductions are in line with the recommendations of a recent report of the Review Body on Higher Remuneration.

The salaries of Ministers and Secretaries General of Government departments will be reduced by 15%. The Taoiseach’s salary will be reduced by 20%.

There will be further reductions in fees paid by State bodies for professional services. There will also be savings from general reductions in grants and grants-in-aid paid by departments.

Pensions

A new single scheme will be introduced for all new entrants to the public service from 2010 onwards. Main provisions include:

• Raising of the minimum public service pension age from 65 to 66 years initially, and then to be linked with the State Pension age
• Maximum retirement age of 70 years
• Pensions to be based on “career average” earnings rather than final salary

Legislation will be introduced early in 2010 to give effect to these measures.

The Government will consider using the Consumer Price Index (CPI) as the basis for post-retirement increases for both existing and future pensioners.

For existing public servants retiring after 2010, the Minister may bring forward further proposals as part of the legislation introducing the single new scheme.

In developing the new scheme the Government will be considering:

• Employee pension contribution - the rate of employee pension contribution remains at 6.5% but may apply to all pensionable pay
• Pension accrual rate applying to pensionable pay taking account of entitlement to a State Pension
• Some groups, such as Gardaí, Defence Forces, prison officers and firefighters will retain early retirement ages but other special terms, such as added years, will be generally discontinued

These terms to apply to the President, Oireachtas members, the judiciary and the Attorney General.

Any retirements in 2010 will be on existing pay terms before the reductions announced in this Budget.

National Solidarity Bond

A new National Solidarity Bond is proposed to help the financing of the capital investment programme underlying the 2010 Budget (that is, the bond will not be used to fund additional spending).

The bond will be in addition to the current range of “State Savings” products (savings bonds, savings certificates, prize bonds, national instalment savings and the Post Office deposit account).

The main features of the new bond will be:

• Investors can choose to invest for a five-, seven- or ten-year period
• Interest will be paid annually
• Investors will be entitled to a final redemption bonus on maturity as an incentive to leave their funds invested; the bonus will be different for each investment period
• Full details of the tax treatment of the bond will be provided in the Finance Bill 2010
• It will be possible to invest in the bond by lump sum or by occasional payments

The bond will be available through the following channels:

• Internet
• Telephone
• Direct debit
• At your local Post Office

The bond will be sold by An Post on behalf of the National Treasury Management Agency (NTMA). Further details will be announced by the NTMA early in 2010.

Voluntary and community sector

• Continued support for communities through local and community development programmes, supports for volunteering, for locally-based community and voluntary groups and the Community Services Programme.
• A revised Scheme of Community Support for Older People will be introduced early in 2010, which will provide security equipment for upwards of 9,000 older people. Sixty four organisations will continue to receive funding under the Scheme to Support National Organisations in the Community and Voluntary Sector, as will the 21 volunteer centres and other volunteering initiatives.
• Employment levels will be maintained at existing levels in 450 community projects under the Community Services Programme (CSP) by requiring projects to generate additional resources from their operations.
• Increased funding for the EU co-funded Rural Development Programme for Ireland 2007-2013 (LEADER).
• Capital funding of €33m (including Údarás na Gaeltachta) is being provided for the Gaeltacht and Islands in 2010. This allocation includes investment in marine works, road improvements, access to the islands and water schemes.
• Continued support for language development programmes under Ciste na Gaeilge and the Advanced Irish Language Skills Initiative for third-level institutions. Capital funding of €0.6m will facilitate the expansion of Irish language social and cultural centres in the main urban areas.