Apprenticeship funding 'oversized and inflationary' says government report

The financing of apprenticeship contracts "appears oversized and inflationary", according to a government report published Friday, September 1 which assesses the additional cost paid to apprentice training centers (CFA) at some 800 million euros in 2022 and proposes reforms.

This report by the General Inspectorates of Finance (IGF) and Social Affairs (Igas) was produced in the context of budgetary discussions on State support for France's skills, the training regulator and the work-study program in the deficit (546 million in 2022) recurring despite several exceptional endowments.

Since 2018, CFAs have been guaranteed a level of support for each apprentice trained: a CFA will thus receive 6.693 euros for a mason, 4.500 euros for a web developer, etc.

Some 3.300 certifications are thus financed with levels set by the professional branches within the ranges recommended by France competences.

But, according to the IGF/Igas mission, the difference between the level of support and the actual cost of training would be 1.000 euros on average per apprentice, i.e. an average CFA margin rate of 11%, "nearly twice that of the education sector as a whole".

This 2018 reform - coupled with the exceptional hiring aid decided during the Covid crisis - having boosted apprenticeship entries (from 321.000 in 2018 to 837.000 in 2022), this represents an additional cost of more than 800 million in 2022.

According to the mission, the payment of apprenticeship contracts could amount to 10,3 billion euros in 2023 and is only covered up to 3,6 billion by the Single Contribution to Vocational Training ( Cufpa, tax paid by companies).

In the short term, France competences decided in June on an average reduction of 5% in the levels of support, i.e. savings estimated at 519 million euros.

In the medium term, the mission issues leads without calling into question either the objective of one million apprentices in 2027 or the logic of "open window" (each contract is guaranteed to be financed).

It thus proposes that part of the funding be provided by the branches insofar as they benefit from the skills developed by the apprentices.

It also suggests a reduction in the levels of support or hiring aid from the license, "the effect of integrating young people into employment being lower than for secondary and bac +1 levels and +2".

On the revenue side, 300 million could be recovered by removing certain exemptions from the Cufpa.