COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT Accompanying the document Proposal for a Council Recommendation on individual learning accounts
Date: 2021-12-10
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: EU employment policy, access to education, adult education, continuing education, continuing vocational training, economic recovery, employment aid, labour force, training leave, updating of skills

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   EUROPEAN COMMISSION  Brussels, 10.12.2021  SWD(2021) 370 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  Accompanying the document Proposal for a Council Recommendation on individual learning accounts  {COM(2021) 773 final} - {SEC(2021) 417 final} - {SWD(2021) 368 final} - {SWD(2021) 369 final}  
 
 
Why? What is the problem being addressed?  

A. Need for EU action 

Skills  and  training  are  crucial  to  strengthening  the  EU’s  sustainable  competitiveness, 
supporting  a  job-rich  recovery  from  the  COVID-19  pandemic  and  ensuring  a  socially  fair 
digital and green transition. The European Pillar of Social Rights action plan, which has been 
welcomed by the European Council, recognises this by setting the headline target of at least 
60% of all adults participating in training every year by 2030. 

However, the adult learning participation rate stood at only 37.4% in 2016
 and will not reach 
the 2030 target if recent trends continue. Moreover, adults’ participation in learning is unequal 
across  Member  States  and  groups  of  adults,  increasing  vulnerabilities  in  a  context  of 
accelerating labour market transformations for those who participate less. Two main problems 
lead to low and unequal participation of adults in learning: 

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individuals  receive  insufficient  financial  support  for  training.  This  is  mainly  due  to 
low  levels  of  investment,  gaps  in  coverage  of  certain  groups  of  adults  and  types  of 
training, barriers to devoting time to training and fragmentation of support, and 

individuals’  incentives  and  motivation  to  take  up  training  are  insufficient.  This  is 
related  to  people’s  limited  awareness  of  their  skills  needs,  limited  transparency  of 
training offers, uncertainty about a training programme’s quality and recognition, and 
insufficient tailoring of available offers to individual needs. 

What is this initiative expected to achieve?  

The  general  objective  of  the  initiative  is  to  support  Member  States’  reforms  to  empower 
adults to participate in training, in order to increase participation rates and reduce skills gaps. 
The  initiative  thereby  contributes  to  the  EU's  objective  of  promoting  a  highly  competitive 
social market economy, aiming at full employment and social progress.  Specifically, it aims 
to: 

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close  gaps  in  existing  support  systems  so  that  all  adults  have  access  to  support  for 
training, including for professional transitions and irrespective of their labour force or 
professional status; 

increase individuals’ incentives and motivation to seek training. It is embedded in the 
wider range of actions under the European Skills Agenda. 

What is the added value of action at EU level?  

EU  action  is  warranted  by  the  EU  policy  objective  of  having  a  skilled  labour  force  for  the 
competitiveness of enterprises and innovation for sustainable growth and the resilience of our 
economy in a context of accelerating green and digital transitions. An EU initiative supports, 
coordinates  and  accelerates  national  efforts  by  sharing  good  practices  and  promoting 
innovative  approaches  to  common  challenges.  It  helps  in  setting  expectations  that  all 
stakeholders will contribute to, and benefit from, the shared asset of a skilled EU labour force. 

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 Source: Adult Education Survey 2016 (most recent), excluding guided on the job training in line with the EU 
benchmarking framework for adult learning.  

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It  can  enhance  the  quality  and  transparency  of  training  markets  across  the  EU,  benefitting 
individuals and companies on the single market and the freedom of movement. 

B. Policy options 

What  legislative  and  non-legislative  policy  options  have  been  considered?  Is  there  a 
preferred choice? Why?  

The  assessment  considered  policy  options  that  differ  in  terms  of  the  delivery  mode  for 
training entitlements (training vouchers or personal accounts), the size of the target group and 
individuals’ freedom of choice to select training opportunities. 

The preferred option is to provide training entitlements to all working-age adults in the form 
of  personal  accounts,  while  modulating  amounts  according  to  support  needs  and  allowing 
individuals  to  choose  freely  from  training  opportunities  characterised  by  a  level  of  quality, 
labour market relevance and recognition that is assured by their inclusion in a public registry. 
This option is most effective in achieving the objectives of the initiative, as it:  

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comprehensively reduces support gaps; 

ensures the transferability of training entitlements; and 

increases the tailoring of training to individual needs. 

In the light of the objectives of the initiative, the legal basis and principle of subsidiarity, the 
preferred legislative instrument is a proposal for a Council Recommendation. This instrument 
makes  it  possible  to  recommend  a  combination  of  individual  training  entitlements,  career 
guidance  and  enabling  framework  conditions  (a  public  registry  of  recognised  training, 
validation and career guidance opportunities, paid training leave and effective governance for 
continuous improvements) while leaving room for Member States to implement the measures 
in line with national circumstances. 

Who supports which option?  

In  the  public  consultation,  a  majority  of  respondents  from  all  main  stakeholder  groups 
supported  giving  training  entitlements  to  all  working-age  adults  and  allowing  individuals  to 
choose  freely  among  eligible  training  opportunities.  In  the  targeted  consultations,  social 
partners sought reassurance that the implementation of either policy option will not come at 
the  expense  of  support  for  training  provision  by  employers.  Representatives  from  national 
public authorities and social partners pointed to  the need to  accommodate different  national 
traditions as regards the organisation of training. 

What are the benefits of the preferred option?  

C. Impacts of the preferred option 

Scenario  analyses  suggest  that  the  implementation  of  the  preferred  option  could  increase 
training  participation  in  2030  to  levels  above  the  60%  EU  target,  and  reduce  participation 
gaps  across  Member  States.  The  main  expected  impacts  are  higher  wages  for  individuals, 
higher productivity for enterprises and higher GDP and social cohesion at societal level. 

What are the costs of the preferred option?  

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Scenario  analyses  estimate  direct  annual  cost  of  training  entitlements  of  around  EUR  17.6-
24.5 billion. Additional costs result from a greater uptake of paid training leave and set-up and 
administrative costs, but are expected to  be limited  by the significant  relevant  infrastructure 
that already exists in many Member States. 

How will enterprises and SMEs be affected?  

Companies are expected to benefit from a more skilled labour force and reduced skills gaps, 
with particular benefits for SMEs whose employees currently participate less in training. 

Will there be significant impacts on national budgets and administrations?  

The  funding  arrangement  is  left  to  the  Member  States  in  view  of  the  different  national 
traditions.  Cost-benefit  calculations  suggest  that  if  well  implemented,  the  above-mentioned 
benefits  of  individual  learning  accounts  significantly  outweigh  their  costs,  so  that  suitable 
funding and cost-sharing arrangements can promote sustainable public finances. 

Will there be other significant impacts? 

Significant positive fundamental rights impacts are expected in the context of Article 14(1) of 
the  Charter  of  Fundamental  Rights  of  the  EU  (“right  to  education  and  to  have  access  to 
vocational and continuing training”). 

When will the policy be reviewed?  

D. Follow-up 

The  Commission  will  monitor  and  evaluate  progress  in  the  implementation  of  the 
Recommendation,  in  cooperation  with  the  Member  States  and  after  consulting  the 
stakeholders concerned, and report to the Council within 5 years from the date of its adoption.  

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