Explanatory Memorandum to COM(2021)773 - Individual learning accounts

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier COM(2021)773 - Individual learning accounts.
source COM(2021)773 EN
date 10-12-2021


1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

The success of both the digital and green transitions depends on workers with the right skills, and the need to act fast puts high demands on Member States’ support systems for continuous learning. Moreover, demographic change in Europe means that we need to activate everyone’s full potential, in order to ensure sustainable growth. Lastly, recovering from the socio-economic impact of the COVID-19 pandemic requires a reinforced policy on skills to support successful professional transitions where needed.

Skills development is a fundamental part of the response to these challenges. Skills are a centrepiece of the European way of life as they are a key driver for individuals’ success in a fast changing labour market. A strong skill set opens up opportunities, provides a safety net in uncertain times, and promotes inclusion and social advancement. However, across Europe, too few people take part in regular learning once they have completed their initial education. Many find themselves excluded from opportunities to up- or reskill because of their labour force status or personal circumstances, like lack of finances, time or motivation to train. Limited awareness of their own 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 all contribute to low motivation to take up training in a context of limited opportunities for financial support. 1

As a result, today only 1 in 10 adults in Europe undertakes training in a given 4 weeks-period 2 and less than half of all adults report any formal or non-formal education or training activities over a period of 12 months. Furthermore, those who do undertake education or training are not necessarily those who need it most. For example, permanent employees are more likely than other adults to engage in learning (45% as against 29%); and sectors, occupations and types of employment with higher proportions of lower-qualified workers find themselves at the bottom of the upskilling ranking. 3 Overall, women participate slightly more in adult learning than men (38.4% vs 36.4%). However, men are somewhat more likely than women to report learning for job-related reasons. 4

A skilled workforce is also a key factor for the productivity, sustainability and innovation of businesses of all sizes, notably for small and medium-sized enterprises (SMEs). It enables them to grow and contribute to a successful green and digital transition, thereby creating high-quality jobs. Providing people with the right skills also allows businesses to take advantage of advanced technologies.

However, skills mismatches and gaps on the labour market persist and are growing. 5 For example, they already constrain the transition to a greener economy, which highlights the importance of skills investment to reach the EU’s ambitious European Green Deal objectives, including emission reduction targets. 6 They also put breaks on the digital transition, with more than 70% of businesses reporting a lack of staff with adequate digital skills as an obstacle to investment. 7 In particular, SMEs are often at a disadvantage compared to larger companies when it comes to supporting the skills development of their staff. Employees in large companies are more likely to participate in training (55%) than SME employees (42%). SMEs include microenterprises with fewer than 10 employees, who tend to participate in training the least (36%). 8

The Commission’s Communication on a European Skills Agenda 9 for Sustainable Competitiveness, Social Fairness and Resilience was published in July 2020, at the height of the COVID-19 pandemic. It called for a skills revolution and a paradigm shift on skills policies and announced 12 actions to make this a reality. One of its actions announced an initiative on individual learning accounts which allow people to accumulate and preserve training entitlements to use them for training, guidance or validation.

Contents

1.

This paradigm shift on skills policies is also shaping many key Commission initiatives:


·The European Pillar of Social Rights action plan included an ambitious headline target on skills: by 2030, 60% of working-age adults in the EU should participate in training each year. EU leaders welcomed this in the Porto Declaration of 8 May 2021 and the European Council conclusions of 25 June 2021 10 .

·The European Green Deal 11 recognises skills as a crucial enabler for the green transition to a modern, resource-efficient, and competitive economy. The Commission Communication of 14 July 2021, “Fit for 55” 12 recognises that the green transition can only succeed if the EU has the skilled workforce it needs in order to stay competitive.

·In her 2021 State of the Union address, President von der Leyen underlined the importance of investing in digital skills and the need to draw EU leaders' attention to this. Europe’s Digital Decade 13 reiterates the objective of a minimum 80% of the EU population with at least basic digital skills and set the target of 20 million employed ICT specialists, with gender convergence, by 2030. The recently adopted proposal on the Path to the Digital Decade 14 establishes a framework to take this forward.

·The Commission Communication on A New Industrial Strategy for Europe 15 calls for decisive action to make lifelong learning a reality for all and ensure that education and training keep pace and help deliver the twin transitions.

·The Recovery and Resilience Facility 16 , part of Next Generation EU, and the Multi-annual Financial Framework are providing unprecedented EU funding for Member States to invest in skills. All national Recovery and Resilience Plans adopted by the Commission so far, include measures for adult upskilling and reskilling.

This initiative is necessary because past initiatives have proven insufficient to substantially increase adults’ participation in training and close support gaps in access to training. While the situation varies between Member States, all face similar challenges, as reflected in the European Semester analysis and country-specific recommendations. 17

The analysis from the Impact Assessment 18 shows that there are two broad problem drivers: individuals receive insufficient financial support for training, including to overcome barriers to devoting time for training, and there is insufficient motivation to take up training.

The consequences of the problem are manifold, ranging from a higher risk of unemployment and lower wages and lower job satisfaction for the individual, to reduced productivity in companies, in particular SMEs, and consequently lower GDP and less resilience in the economy as a whole. 19

Unless resolute action is taken, adult learning participation is expected to reach only around 49% by 2030, thus falling well short of the 60% target. This is why the Commission is proposing a fresh approach to supporting up- and reskilling in the EU, in line with the Skills Agenda, which places individuals in the driving seat, and equips them with the support and tools they need to engage regularly in learning.

The general objective of the initiative is to support Member States with reforms to enable adults to participate in training in order to increase participation rates and reduce skills gaps. The proposal covers all adults of working age, irrespective of labour force or professional status 20 . It thus takes a whole new approach to lifelong learning, de-coupling training entitlements from their original funder and giving individuals full ownership over the entitlements. The initiative thereby contributes to the EU's overall objective of promoting a highly competitive social market economy, with a view to full employment and social progress. Scenario analyses suggest that the proposed approach would increase training participation in 2030 to levels above the 60% EU target. 21

2.

In concrete terms, this proposal recommends that Member States should enable adults to participate in training in order to increase participation rates and reduce skills gaps by:


(a)supporting all working-age adults to access training, including for professional transitions and irrespective of their labour force or professional status;

(b)increasing individuals’ incentives and motivation to seek training.

To achieve these objectives, this proposed Recommendation invites Member States to set up individual learning accounts. These will embody the right to lifelong learning, through individual learning accounts as a means of enabling individuals to participate in labour-market relevant training, and an enabling framework including guidance and validation opportunities, to support the actual take-up of training. This corresponds to guideline 6 in the 2021 Council Decision on guidelines for the employment policies of the Member States 22 (‘Employment Guidelines’) confirming the 2020 version 23 , which stresses access to employment and skills, and calls on Member States to “strengthen the provisions on individual training entitlements and ensure their transferability during professional transitions”.


• Consistency with existing policy provisions in the policy area

The proposal is consistent with and complements existing EU policy initiatives, most of which focus on the design of adult education and training provision (“supply side”), rather than on making it accessible to adults and encouraging them to use it (“demand side”).

Moreover, existing initiatives are often limited in scope, focusing only on certain groups, rather than all working-age adults. For instance, in adopting the 2016 Council Recommendation on Upskilling Pathways 24 (the most recent major EU legal act on adult learning policy), Member States agreed to take a strategic and coordinated approach to providing learning opportunities for the EU’s 58 million low-qualified adults. 25 The aim is to help them improve their basic skills (i.e. literacy, numeracy, and digital skills), and/or to acquire a broader set of skills by moving on to higher qualifications. The 2019 report on the implementation of the Recommendation shows a range of national policy responses. It also underlines that addressing the challenge of skilling low-qualified people requires a long-term systemic approach, accompanied by appropriate funding, outreach and guidance, which is often not the case. The Recommendation has a narrower target group and scope than this proposal, as it focuses mainly on the low-qualified, and does not recommend financial support for individual learners.

This initiative complements a number of instruments mentioned in the European Pillar of Social Rights action plan 26 of March 2021, that call on the EU and Member States to upscale skills policies and investment:

·A Commission proposal for a Council Recommendation on micro-credentials, a Skills Agenda action and a key instrument for achieving a European Education Area by 2025 27 , is presented together with this proposal. It aims to help people adapt to the evolving needs of the labour market by promoting the quality, transparency and recognition of short training programmes. Micro-credentials can help ensure that individuals using their individual learning accounts can be confident of training quality and subsequent recognition of their efforts, including by their current and future employers. Jointly, these two initiatives incentivise the uptake of training: by giving adults the means for it, and by ensuring that it will pay off for them.

·The Pact for Skills 28 , launched in November 2020, aims at mobilising private and public stakeholders to take concrete action for the up- and reskilling of people on the labour market, and, where relevant, pool efforts in partnerships. Since then, the Commission has held high-level roundtables with industry representatives, social partners and vocational education and training (VET) providers with a view to launching large-scale partnerships in the 14 industrial ecosystems of the EU Industrial Strategy. As of end November 2021, five such partnerships had been established 29 , which committed to the up- and reskilling of 1.5 million people in the coming years. The Pact for Skills had so far assembled more than 500 members, including sectoral business organisations, large and small companies, universities, VET providers, social partners, chambers of commerce, regional and local authorities and public and private employment services.

·The adoption of this proposal for a recommendation will facilitate the implementation of the Commission Recommendation on effective active support to employment (EASE) 30 , adopted in March 2021. This will help Member States “develop policy packages to facilitate labour market transitions for workers, notably by fostering upskilling and reskilling opportunities and support measures”.


2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Legal basis

The legal basis for the proposed recommendation is Article 292 of the Treaty on the Functioning of the European Union (TFEU) combined with Article 149 TFEU, because the predominant purpose of this initiative is to support Member States in reaching the objectives of employment policy. Article 149 TFEU allows for non-binding measures in the field of employment aimed at providing comparative analysis and advice and promoting innovative approaches. The recommendation will contribute to the implementation of Article 145 TFEU, which requires the Member States and the Union to “work towards developing a coordinated strategy for employment and particularly for promoting a skilled, trained and adaptable workforce and labour markets responsive to economic change”.

• Subsidiarity (for non-exclusive competence)

The present proposal is in conformity with the principle of subsidiarity as provided for in Article 5(3) of the Treaty on European Union (TFEU).

While the initiative is expected to support and accelerate national efforts, it will fully respect the principle of subsidiarity, by leaving the Member States to decide on key design parameters, in particular funding sources, level of the training entitlements, priority target groups (i.e. individuals most in need of up- and reskilling) and eligible training opportunities. While Member States can take measures to improve the situation at national level, an EU initiative can support, coordinate and accelerate national efforts by sharing experiences and promoting innovative approaches. It can also help set expectations and create trust among Member States and stakeholders for an increase in public and private investment in skills, signalling that all of them will contribute to, and benefit from, the shared asset of a skilled EU labour force. In the public consultation, 84% of respondents 31 agreed that the initiative could also lead to a more efficient use of EU funds for skills development.

The initiative can facilitate access to training for the growing number of EU citizens who live in another Member State, thus contributing to labour mobility within the EU and further integration of the single market. 32 It can also help to create a level playing field for companies in the single market by enhancing the quality and transparency of the training market across the EU.

• Proportionality

The present proposal is in conformity with the principle of proportionality as provided for in Article 5 i TFEU.

The proposed actions are proportionate to the pursued objectives given the urgency of the challenge and Member States’ expressed ambition of increasing adult learning participation significantly by 2030 above levels that can reasonably be expected to be reached under the baseline scenario, strengthening the provisions on individual training entitlements and ensuring their transferability during professional transitions.

The recommendation to set up personal accounts for training entitlements is proportionate because such accounts allow to de-couple training entitlements from their original funder and give individuals full ownership over the entitlements, which is essential to ensure the transferability of entitlements. Personal accounts also facilitate flexible funding models with cost-sharing across different funders of training entitlements and modulated support by target groups, accommodating a wide range of possible national funding and implementation models. The implementation of the proposed recommendation concerning individual learning accounts and the enabling framework can build on the provisions in the Member States that already exist or are envisaged in the national Recovery and Resilience Plans. It allows for differentiated approaches that reflect Member States’ different economic, financial and social situations and diverse education, training and labour market conditions.

Thus, the content of this proposed recommendation does not exceed what is necessary to achieve its objectives.

• Choice of instrument

In the light of the objective (supporting reform in the Member States) and the envisaged legal basis, only non-binding instruments are under consideration. A first option is to propose a revision of the Employment Guidelines, so as to support Member States' reforms through the European Semester process and country-specific recommendations. The most recent Guidelines from October 2021 33 confirm the version of 2020, which already asks Member States to “strengthen the provisions on individual training entitlements and ensure their transferability during professional transitions, including, where appropriate, through individual learning accounts”. However, as the Employment Guidelines are general by nature, they do not provide further guidance on how to do this.

Another option is a Commission communication or recommendation that could provide Member States with further guidance and inform the implementation of country-specific recommendations. However, it would not have the political ownership of the Member States, and would therefore be insufficient to incentivise the required reforms.

The preferred instrument is a proposal for a Council recommendation. This will provide Member States with commonly agreed recommendations on a concrete tool that can help them to meet the 2030 EU headline target on training participation. It also provides a common framework for action that could serve as a basis for subsequent analysis of reforms and progress. While leaving it up to the Member States to decide on design parameters such as priority target groups, funding or eligible training opportunities, the proposal provides guidance on how to address the challenges identified in the country-specific recommendations under the European Semester which take into account the specific circumstances of each Member State.

In the public consultation, 61% 34 of respondents agreed that EU legislation followed by Member States on a voluntary basis such as a Council recommendation would be a suitable means of achieving the objectives of this initiative.

3. RESULTS OF STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

• Ex-post evaluations/fitness checks of existing legislation

Not applicable.

• Stakeholder consultations

The Inception Impact Assessment was available online for public feedback between 23 March and 20 April 2021. A total of 23 responses were received, mostly stressing the importance of designing individual learning accounts in collaboration with social partners, the need to ensure that training is of high quality, that guidance and information are available and that sufficient attention is devoted to vulnerable groups.

The Commission held a 12-week public consultation between 23 April 2021 and 16 July. It attracted 216 replies from 78 citizens, 26 public authorities, 46 business associations and enterprises, 26 trade unions and 40 NGOs/other respondents. The majority of respondents (35), of which 23 were EU-level organisations, were based in Belgium, followed by Italy (24). In addition, 38 written responses were received.

The public consultation confirmed the problem definition and the potential EU added value. There was broad support for policy efforts to facilitate learning amongst adults, but support was less strong for non-job-related training. 84% of the respondents agreed that individual learning accounts could be effective for tackling financial constraints to training participation. 82% of respondents agreed that motivation to participate in training can be increased through individual learning accounts, with similarly high scores for career guidance, opportunities for the validation of informal and non-formal learning, a public registry of quality assured training opportunities, awareness raising campaigns at EU and national levels and a one-stop-shop digital platform. There was a general plea to avoid complexity and bureaucracy, and ensure ease of access for individuals.

Eleven targeted consultation events were held with different groups of stakeholders and social partners, including at the highest political level. 35 During the dedicated social partner hearing 36 , social partners expressed their agreement with the general objectives of the initiative, but emphasised that individual learning accounts should be seen as “one tool in the toolbox” for reaching them.

In its Opinion 37 , the Advisory Committee on Vocational Training (ACVT) agreed that the initiative could improve adults’ motivation and participation in education and training. At the same time, it argues that individual learning accounts should complement rather than replace existing government-funded and/or social partner-driven training provision.

The majority of stakeholders and social partners, and especially those from Member States with well-developed training systems e.g. Nordic countries, stressed the importance of integrating new initiatives with the existing national (or regional) training infrastructure, respecting the collective agreements for training already in place, normally involving employers, trade unions, and governments. There was general agreement that the training focus of a new training entitlement initiative should be labour market oriented and that impacts would be enhanced where training entitlements are coordinated with guidance, quality assured systems and accredited training.

The European Parliament in its opinion on the European Skills Agenda 38 highlights the potential of individual learning accounts, a funding mechanism seen as key to help upskilling and reskilling especially for the most vulnerable groups.

The Council Conclusions of 8 June 2020 on reskilling and upskilling 39 invite Member States to; “explore possible models for public and private financing of lifelong learning and the development of skills on an individual level”, and invite the Commission to support Member States in these efforts.

In its opinion of 7 July 2021 on adult learning, the European Economic and Social Committee 40 considers that lifelong learning should become a lifestyle for all and a reality at the workplace, and calls on the Commission and the Member States to achieve and raise the target of 60% of adult learning participation per year. It recommends Member States to strengthen the policy, governance and funding to adult learning and ensure equal access to lifelong learning for all adults.

A high-level forum on individual learning accounts attracted nearly 800 participants from 48 countries and the validation workshop for the Impact Assessment support study (with around 25 participants, mostly NGOs and public authorities) focused on the problem and impact analysis.

• Collection and use of expertise

3.

The evidence base to underpin the initiative includes:


·an external study to support the Impact Assessment;

·relevant data from EU-level surveys, e.g. the Labour Force Survey, the Adult Education Survey, the Continuing Vocational Training Survey, relevant surveys run by Eurofound and Cedefop, on adult learning participation and provision, and on barriers and incentives;

·relevant literature covering evaluations of international experiences;

·several inter-linked outputs from the independent adult learning expert network: country reports on the available financial incentive schemes, an analysis of available statistical evidence, and an analysis of the environment for providing individuals with direct financial incentives for training;

·evidence from consultations on the Skills Agenda and European Pillar of Social Rights action plan and outcomes of high level roundtable meetings on the Pact for Skills. 41

• Impact Assessment

The Commission carried out an Impact Assessment of policy options. This work was supported by structured consultation within the Commission via an Inter-Service Steering Group. 42 The Impact Assessment was discussed with the Regulatory Scrutiny Board (RSB) on 29 September 2021. On 1 October 2021, the RSB issued a positive opinion with reservations, which have been addressed by adding clarifications to the scope of the initiative, the baseline scenario, the description of expected impacts and the choice of the preferred option. 43

The policy options differed in terms of the delivery mode of training entitlements (training vouchers or personal accounts), the size of the target group and individuals’ freedom to choose training opportunities. The preferred policy option is to provide all working-age adults with training entitlements in the form of personal accounts, while modulating amounts according to support needs and allowing individuals to choose freely among training opportunities of which the quality, labour market relevance and recognition is assured by their inclusion in a public registry. This option is most effective in achieving the objectives of the initiative as it comprehensively reduces support gaps and fragmentation while tailoring training to individual needs. 44

In the light of the objectives of the initiative, the legal basis and the 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 and enabling framework conditions, while allowing Member States to implement the measures in line with national circumstances.

Benefits of the preferred option: Scenario analyses suggest that 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.

Costs of the preferred option: Scenario analyses estimate a direct annual cost of training entitlements of around EUR 17.6 to 24.5 billion. 45 Additional costs result from greater uptake of paid training leave and set-up and administrative costs, but these are expected to be limited given the significant relevant infrastructure that already exists in many Member States. If the initiative is implemented well, cost-benefit calculations suggest that the above-mentioned benefits significantly outweigh the costs.

Effect on companies (including SMEs): Companies are expected to benefit from a more skilled and productive labour force and reduced skills gaps, with particular benefits for SMEs whose employees currently participate less in training.

Impact on national budgets and administrations: The funding arrangements are left to the Member States. Cost-benefit calculations suggest that the benefits significantly outweigh the costs, so that suitable funding and cost-sharing arrangements can promote sustainable public finances.

• Regulatory fitness and simplification

Not applicable.

• Fundamental rights

Under Article 14(1) of the Charter of Fundamental Rights of the EU “everyone has the right to education and to have access to vocational and continuing training”: this is also reflected in principles 1, 4 and 5 of the European Pillar of Social Rights. The initiative is expected to have a positive impact on fundamental rights by bridging gaps in the access to continuous training. This impact is rather strong, as the initiative covers all working-age adults, while also providing specific support for people most in need of up- and reskilling.

4. BUDGETARY IMPLICATIONS

This initiative does not require additional resources from the EU budget. The implications for national budgets will depend on the funding model selected by the Member State in question.

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

This proposed Recommendation invites Member States to work jointly with the Commission on its implementation. It recommends that Member States implement its principles as soon as possible and submit a plan setting out measures to be taken at national level. The progress made in implementing the plans should be discussed in the context of the multilateral surveillance of the European Semester in the Employment Committee, focusing on the instruments put in place by Member States as well as outcomes (such as training participation and subsequent labour market outcomes).

The Commission aims to establish jointly with the Employment Committee a monitoring framework with agreed common quantitative and qualitative indicators, as a basis for assessing the implementation of this Recommendation and for its review. In order to streamline Member States’ reporting obligations, this framework would, as far as possible, use information already collected through other monitoring frameworks and avoid duplications of monitoring and reporting (e.g. for the Recovery and Resilience Facility, the European Social Fund Plus and the strategic framework for European cooperation in education and training towards the European Education Area).

The Commission aims to assess and evaluate progress in the implementation of the proposed Recommendation, in cooperation with the Member States and after consulting the stakeholders concerned, and report to the Council no sooner than 5 years from the date of its adoption.

• Explanatory documents (for directives)

Not applicable.

• Detailed explanation of the specific provisions of the proposal

(Paragraphs 1-2) The innovative aspect of this proposal is that it puts the individual directly at the centre of skills development. It recommends that Member States develop policies and instruments to support all working-age adults to access training, including for professional transitions, irrespective of their labour force or professional status, as well as to increase individuals’ incentives and motivation to seek training. Individual learning accounts and an enabling framework, including guidance and validation opportunities, can promote the effective take-up of this training.

(Paragraph 3) The target group for the initiative is all working-age adults legally residing in a Member State, independently of their educational attainment level and current labour force status or type of employment, hence including the employed, self-employed, and others in atypical forms of work, the unemployed and people outside the labour force. The proposal therefore recommends establishing an individual learning account for every working-age adult in the Member State where he or she is legally residing.

However, for EU frontier workers and self-employed who are EU citizens and who work in a Member State other than the State where they reside an exception is warranted. As individual learning accounts are primarily aimed at developing labour market-relevant skills, the place of residence would not be a suitable criterion to determine in which Member State the individual learning account should be set up for this group. Therefore, the proposal recommends the place of (self-) employment as the criterion determining where the individual learning account should be set up for frontier workers. This treatment would be in line with the principle of non-discrimination of nationals as regards the access to social advantages established in Article 7(2) of Regulation 492/2011 46 .

(Paragraphs 5-7) The proposal recommends that Member States take a universal approach by setting up an individual learning account for every individual covered by the scope of this initiative and ensuring the adequate annual provision of individual training entitlements. At the same time, it calls on Member States to modulate funding according to individuals’ needs. This “universal but differentiated” approach was supported by stakeholders in the public consultation. The proposal recommends granting additional training entitlements for individuals most in need of up- and reskilling. Depending on the national context, these could be individuals in specific employment situations (e.g. atypical forms of work), according to their labour force status (employed, unemployed or outside the labour force), working for firms in sectors significantly affected by the digital or green transition), or specific types of company (e.g. micro-enterprises, SMEs, or those with with specific skills needs (such as low-qualified individuals), or in specific age groups or vulnerable groups. The groups receiving additional training entitlements may change as the labour market evolves.

(Paragraphs 8-9) Individual learning accounts support the idea of cost-sharing, as they allow contributions from different sources, such as public authorities and employers, to be bundled and managed in a single account. This facilitates the modulation of support by need of up- and reskilling (e.g. with Public Employment Services funding additional individual training entitlements for the unemployed), and top-ups by employers for their employees, either voluntary or as an outcome of collective bargaining agreements.

(Paragraph 10) The accumulation of individual training entitlements over a set period in a personal account allows individuals to store entitlements independently of their labour force or professional status, to embark on longer or more costly training, train for transitions between jobs or to respond to emerging skill needs during crisis periods and in the context of the green and digital transitions. Member States can set rules on ceilings for such accumulation or on the expiry of entitlements, in order to encourage individuals to make use of them.

(Paragraph 11) The proposal recommends that individuals receive training entitlements in their place of legal residence, except for frontier workers and self-employed persons who work in a Member State other than the State where they reside and who should be covered in the Member State where they work. As entitlements fall outside the scope of the common rules on protecting the social security rights of those moving within the EU 47 , it recommends that Member States allow people to preserve their individual learning account and accumulated training entitlements during periods spent living in a different Member State. This allows people to spend them on their return or on distance learning offers in line with the rules in place for individual learning accounts in their home Member State. At the same time, the people would be entitled to a new individual learning account in the Member State they are now residing in. This facilitates cross-border mobility and underlines the principle that, once conferred, training entitlements belong to individuals. The transferability of training entitlements between Member States will be explored further, when national individual learning accounts have been established and will be covered in the evaluation of the implementation of this Recommendation. The EU can facilitate discussion on the transferability of individual training entitlements between Member States.

(Paragraphs 12-20) It is essential to establish an enabling framework to facilitate the uptake of training, career guidance and validation opportunities. It is proposed that this should include career guidance and validation opportunities, a public national registry and a single national digital portal supporting individual learning accounts by allowing for secure electronic authentication and connection to the registry. The framework will play a crucial role in motivating people to decide to take up training, as it will provide a selection of trustworthy, quality assured training opportunities, together with career guidance and validation options. The cooperation of employers, in particular micro-enterprises and SMEs, will also be crucial for the successful creation of the framework.

(Paragraph 12) The consultations identified career guidance services as the most important element of an enabling framework. Although such services are available in most Member States, their outreach is often limited. To guide individuals to the training opportunities that best address their needs, it is recommended that Member States improve access to in-person career guidance for all adults, as well as access to guidance services by digital means (in particular through a user-friendly registry of recognised opportunities).

Validation of prior learning allows individuals to prove that they have acquired certain skills. The recent evaluation of the Council Recommendation on the validation of non-formal and informal learning 48 points to substantial progress, but also identifies persisting challenges and proposed responses. In particular, it is necessary to ensure the provision of support for individuals, closer coordination with guidance services and effective tailoring of validation initiatives for disadvantaged and vulnerable groups. The proposal seeks to address remaining validation challenges by recommending that Member States ensure that individual learning accounts can be used to access validation opportunities and that such opportunities, including in person or online skills assessment, are available and accessible. It thereby complements the proposal on a European approach to micro-credentials, which can also facilitate validation and recognition of training outcomes.

(Paragraph 13-17) A public national registry of quality assured and recognised training, career guidance and validation offers can increase people’s motivation to take up training by presenting the available opportunities in an easily accessible way and reducing uncertainty as to the quality and recognition of training outcomes. Similar registries already exist or are under development in at least 12 Member States. The proposal recommends that all Member States establish such a registry and keep it up-to-date, along with a sustainable governance model with transparent rules for the inclusion of new training offers. Only training, career guidance and validation offers included in the registry should be eligible for funding from individual training entitlements. Also career guidance services and validation opportunities provided by Member States free of charge for individuals should be included in this registry. Criteria for including opportunities in the registries should be formulated at Member State level, based on transparent quality requirements and in cooperation with social partners and relevant stakeholders, drawing on skills intelligence and European competence frameworks. 49 Short training courses included in the registry should be developed in line with the European approach to micro-credentials in order to promote transparency about quality and recognition of training outcomes. Member States are encouraged to open up the national registry in a transparent way to training opportunities offered by providers in other countries, providing they are of trustworthy quality. As the consultations confirmed, social partners and relevant stakeholders are able and willing to add value to the governance of such registries.

(Paragraph 18) The proposal recommends that Member States set up and maintain a single national digital portal, easily accessible via mobile devices (e.g. through a digital app), to increase transparency on available training and support opportunities at national level and to allow users to access their individual accounts, review their available individual training entitlements and consult the national registry.

(Paragraph 19-20) Paid training leave allows workers to keep their salary or a replacement income during periods of training ranging from a few days to several months. Such provisions already exist in 24 Member States, of which 12 are signatories of the International Labour Organisation (ILO) Paid Educational Leave Convention. 50 However, access to paid training leave is often restricted by particular features of the employment relationship. Restrictive eligibility criteria and a lack of information by potential beneficiaries mean that fewer than 1% of the employed population tend to make us of the existing provisions. 51 Member States are therefore also invited to adopt universally available paid training leave provisions or review existing provisions to ensure they cover all employed individuals, and include financial support for employers whose employees make use of paid training leave (in particular SMEs, that face greater challenges). The proposal recommends strengthening the links between paid training leave provisions and other available support measures while leaving the detailed arrangements to the Member States.

(Paragraph 21) The proposal also recommends that Member States organise wide outreach activities and awareness-raising campaigns, in particular among those furthest away from the labour market. These are key to ensuring a higher rate of adult participation in learning opportunities, notably among groups with low awareness of up- and reskilling needs and opportunities. Cooperation between public authorities, social partners, civil society organisations and other stakeholders can increase the effectiveness of such activities.

(Paragraph 22) In order to support the implementation of this initiative, it is recommended that Member States put in place monitoring arrangements to ensure the continuous improvement of the individual learning accounts and enabling framework. Subsequent adjustments to achieve the objectives of this Recommendation in the most efficient way could concern the amount of individual training entitlements, the definition of individuals most in need of up- and reskilling or the user-friendly integration of the various elements of the enabling framework.

(Paragraph 23-26) Arrangements for ensuring the adequate and sustainable funding of individual learning accounts are to be determined at national level, in line with national circumstances and with particular attention to SMEs. While the responsibility on the implementation of the Recommendation remains with the Member State, the proposal recommends facilitating the combination of different public and private funding sources, which may for instance include voluntary top-ups by employers. Member States may also benefit from support from various EU funds, in particular the cohesion policy funds, including the European Social Fund Plus 52 , the European Regional Development Fund 53 and the Just Transition Fund 54 , as well as the Recovery and Resilience Facility 55 under Next Generation EU, if they have included relevant reforms and investments in their Recovery and Resilience Plans. The Technical Support Instrument can provide tailor-made expertise to design and implement reforms supporting the establishment of individual learning accounts and their enabling framework.

(Paragraph 27) As explained above, EU support will focus on harnessing the unprecedented EU funding available to Member States for skills development from Next Generation EU and the multi-annual financial framework. The EU will also support skills development through relevant initiatives such as the Pact for Skills, the Blueprint for Sectoral Cooperation on Skills, the Digital Skills and Jobs Coalition, the Electronic Platform for Adult Learning in Europe (EPALE) and other suitable measures of Erasmus+, and co-operation projects among social partners at EU level. It can also support mutual learning and the exchange of good practices in the implementation of the Recommendation. Further work on the Europass platform should focus on ensuring interoperability, i.e. connecting with single national digital portals for individual learning accounts.

(Paragraph 28-30) Reporting and evaluation will be based on monitoring in the multilateral surveillance run in the Employment Committee as part of the European Semester cycle, based on an agreed monitoring framework and monitoring arrangements. It is recommended that Member States prepare an implementation plan within 12 months of the adoption of the Recommendation. A first evaluation is suggested no sooner than 5 years after adoption.