In recent years in Germany, the burden of expenditure for continuing education has shifted from the public sector to the individuals. Participants fund half of the total continuing education expenditures, while the State withdraws from funding continuing education despite its assessment of an increasing significance in this area. The text initially gives an overview of the financial structures in continuing education in Germany and subsequently highlights the developments over the past few years.

The most significant sources of funding for continuing education in Germany come from the participants, companies and the State. The State provides funding at various levels; funds are allocated by the Federal Employment Agency (BA), the Federal Government, federal states and local authorities.
The Federal Employment Agency is financed by taxes and unemployment insurance contributions. As part of an active employment market policy, it supports vocational continuing education with the aim of preventing unemployment or reducing the duration of unemployment. The BA provides funding for the participation of the unemployed and those facing unemployment in vocational continuing education, including costs for the course, travel, childcare and overnight accommodation.
As part of the public sector, the Federal Government finances continuing education activities for its employees and scholarships for the working population as well as pilot projects and programmes of a national significance. In addition to these direct funds, continuing education is also indirectly funded by the Federal Government, whereby continuing education participants and companies can benefit from tax reductions by claiming the continuing education costs as extraordinary, advertising or company expenses.
The direct funds from the public sector are predominantly used by the local authorities and federal states. These are mainly subsidies for the continuing education institutions that should guarantee a basic provision for continuing education as institutional funding. Furthermore, the federal states provide funding for companies and people via state-specific project support, such as education and qualification cheques as well as academic continuing education based on higher education laws.
The federal states also have legislation for continuing education. Federal states and local authorities generally provide funding on the basis of adult education or continuing education laws. In almost every state, there are continuing education acts that also include regulations on the public funding of continuing education.
Governmental continuing education funding has changed in recent years to be more demand-oriented. This has the aim of making it easier for certain social groups, such as the unemployed, low-earners, senior citizens or those returning to the labour market, to access continuing education. Individuals in need of funding will receive education vouchers, bonuses and loans.

Companies play a significant role as continuing education financers. Continuing education required for companies is mainly paid for by the companies. The courses, retraining and teaching staff are financed. The companies also incur indirect costs due to the continued payment of wages and leave of absences. These indirect costs amount to approximately half of the total costs for continuing education.
Company-related continuing education can be financed by the companies alone as well as by several protagonists. With a mixed-financed continuing education, the companies as well as the participants, the State or European Social Funds (ESF) pay the costs. The State can partially co-finance the costs of company-related continuing education as part of governmental support programmes. This also applies to the ESF who can be involved in institutional or individual funding.

If only the direct costs are taken as a basis, the total budget for continuing education in 2007 was 28 billion euros, i.e. 1.2% of the gross domestic product. The participants are the largest financers of continuing education with 50%, followed by the companies (38%). At 11%, the State only has a subordinate role in continuing education funding. If the long-term development of total costs for continuing education is considered, a decline of more than 20% can be seen between 1996 and 2007. This decline is ascribed to the decline in financing from the Federal Employment Agency for continuing education measures for job-seekers and the unemployed. The BA’s funding was cut from almost eight billion euros in 1996 to approximately one billion euros in 2007. However, the largest increase in this time period was in financing from the participants, growing from 8 billion euros to 14 billion euros in 2007.

Further information:

Stefan Hummelsheim: Finanzierung der Weiterbildung in Deutschland (Financing of Continuing Education in Germany). Bielefeld 2010, 156 pages, €19.90, ISBN: 978-3-7639-1976-5