Funding

The public sector, industry, social groups, continuing education institutions and public broadcasting corporations as well as the general public bear responsibility for continuing education.

This joint responsibility is reflected by the funding principle, which obliges all the parties concerned to contribute towards the cost of continuing education in relation to their share and according to their means. Public-sector funding (local authorities, Länder, the Federal Government, the European Union) includes the following areas:

• institutional sponsorship of recognised continuing education institutions by the Länder on the basis of continuing education or adult education legislation
• institutional sponsorship of Volkshochschulen (local adult education centres) and sponsorship of activities of continuing cultural education by the local authorities,
• grants for adults seeking to obtain school-leaving qualifications under the Federal Training Assistance Act (Bundesausbildungsförderungsgesetz – BAföG) and career advancement training under the Upgrading Training Assistance Act (Aufstiegsfortbildungsförderungsgesetz – AFBG - R166),
• individual promotion of  continuing vocational training for emplyees by the Federal Employment Agency (Bundesagentur für Arbeit),
• continuing education for employees of the Federal Government, Länder and local authorities.

Industry provides a considerable proportion of funding for schemes under which people can obtain and improve vocational and/or working skills and qualifications. Companies spend substantial funds on continuing education for their staff.

Further vocational education and training, for the target groups of the unemployed and for employees is financed by contributions pursuant to Book Three of the Social Code (Drittes Buch Sozialgesetzbuch – Arbeitsförderung) from unemployment insurance scheme funds.

In 2024, the Federal Employment Agency's expenditure on the funding of continuing education and training under SGB III amounted to around Euro 1.9 billion for continuing vocational training measures, around Euro 0.57 billion for funding the subsequent acquisition of a vocational qualification and around Euro 1.4 billion for unemployment benefits during continuing vocational training. In addition, the Federal Employment Agency provided around Euro 700,000 in funding for the subsequent acquisition of the Hauptschulabschluss or an equivalent school-leaving qualification under the further training funding programme in accordance with the German Social Code (SGB III).

Social groups (churches, trade unions, and so on) also bear a proportion of the cost of running their continuing education institutions. They guarantee the widest possible access to continuing education by setting their fees at an appropriate level.

The obligation of employers to grant employees leave for training while continuing to pay their wages may be regarded as indirect funding for adult education; this is regulated in most Länder in laws on paid training leave and educational leave. The Land law rules differ depending on the purpose of the education or training (vocational, socio-political or general continuing education). In addition, the financing of further training by employers, even without a legal obligation, is in their own interest to maintain competitiveness and secure jobs.

Fees Paid by Learners

Those attending continuing education courses make a contribution towards their cost. This contribution can be subsidised by tax relief and by assistance for low-income groups and for special courses. For example, depending on the Land, between 15.1 and 31.7 per cent of the cost of Volkshochschulen courses (especially general continuing education) was covered by course fees in 2024. In particular, those on career development courses within continuing vocational training bear a large proportion of continuing education costs themselves. Additionally, costs are partly covered by enterprises within the framework of personnel development measures.

Continuing academic education at higher education institutions is funded by the fees of course members.

Financial Support for Adult Learners

Financial Assistance under the Federal Training Assistance Act

Grants are provided for adults seeking to obtain school-leaving qualifications under the Federal Training Assistance Act (Bundesausbildungsförderungsgesetz – BAföG). Training assistance under the Federal Training Assistance Act is for example granted for the attendance of Abendschulen or Kollegs, if the student has not yet exceeded the age of 30 at the beginning of the training section. Participants in courses of the so-called zweiter Bildungsweg may receive up to Euro 498 or 775 per month in educational assistance under the terms of the Federal Training Assistance Act, depending on whether they live with their parents and the type of educational institution they attend, with income being taken into account. A health and long-term care insurance allowance of up to Euro 137 in total, or up to Euro 233 in individual cases, may also be granted, as well as, where applicable, a childcare allowance of Euro 160 for each child. This support takes the form of a grant and therefore does not need to be repaid.

Financial Assistance under the Upgrading Training Assistance Act

Those who take part in career advancement training programmes have a legal right to state funding under the Upgrading Training Assistance Act (Aufstiegsfortbildungsförderungsgesetz - AFBG). The so-called Upgrading BAföG supports full-time and part-time continuing education courses offered by public and private providers that specifically prepare participants for public further training examinations pursuant to the Vocational Training Act (Berufsbildungsgesetz – BBiG), Crafts and Trades Regulation Code (Handwerksordnung – HwO) or equivalent advanced training qualifications pursuant to federal or state law. The professional qualification aspired to must be above the level of a skilled worker, journeyman and assistant examination or a Berufsfachschule qualification. The AFBG supports persons who prepare for an upgrading training qualification e.g. as a master craftsman or master tradesman in industry, educator, state-certified technician, business administrator, economist, certified specialist, Bachelor Professional, Master Professional or one of more than 700 comparable qualifications in an eligible scheme. This grant is partly a subsidy and partly a low-interest loan from the Reconstruction Loan Corporation (Kreditanstalt für Wiederaufbau – KfW). Support for participants who already have a Bachelor's degree or comparable higher education qualification as their highest higher education qualification is also possible. 

The AFBG is financed 78 per cent by the Federation and 22 per cent by the Länder. In 2024, a total of over Euro 1 billion in funding was available under the AFBG, and a total of just less than 190,000 participants were supported in upgrading training schemes.

Promotion of continuing vocational training in accordance with the Second and Third Book of the German Social Code

Funding for continuing vocational training is regulated in the Third Book of the German Social Code. Funding is provided for further training costs such as course costs, travel costs, childcare costs or accommodation away from home. For unemployed people who are entitled to unemployment benefit, the costs of further training are covered in addition to the fact that unemployment benefit continues to be paid during further vocational training. In this case, only half a month of unemployment benefit entitlement is used up for each month of further training. People receiving benefits under the Second Book of the German Social Code continue to receive the benefits to which they are entitled to cover their living expenses whilst participating in a further training programme, in addition to the further training costs metioned above.

The Twelfth Act Amending Book II of the Social Code and Other Acta - Introduction of a Universal Basic Income (Zwölftes Gesetz zur Änderung des Zweiten Buches Sozialgesetzbuch und anderer Gesetze - Einführung eines Bürgergeldes) also expanded training opportunities for the unemployed and for employees receiving basic income support for jobseekers, and strengthened financial incentives.

Preventive further training support for employees in accordance with SGB III includes, on the one hand, the assumption of training course costs for employees and, on the other hand, the granting of wage subsidies to employers for periods of absence from work due to further training.

The Law to Strengthen the Promotion of Training and Further Education (Gesetz zur Stärkung der Aus- und Weiterbildungsförderung) improved the funding of continuing education for employees from 1 April 2024 and added a new funding instrument with the introduction of the training allowance.(Qualifizierungsgeld). The training allowance is available to employees whose jobs are at risk due to structural change, but who can be helped to secure long-term employment within the same company through further training.

Financial Assistance through Grants

As part of the  Vocational Training Promotion for Gifted Young People, the Federation assisted by the Vocational Training Foundation for the Highly Talented (Stiftung Begabtenförderung berufliche Bildung gGmbH  – SBB) provides grants to support continuing education measures for high-performing young people in employment who have completed a recognised course of vocational training in accordance with the Vocational Training Act, the Crafts and Trades Regulation Code or one of the health sector professions governed by federal law and who are younger than 25 on commencing the programme (Further Training Scholarship). The Federation also supports high-performing people with professional experience who want to start studying after several years of professional activity via the SBB (upgrading scholarships).

Voucher programmes for the promotion of non-formal further education

For more than a decade, Germany has also been supporting continuing vocational training in the form of voucher programmes. At the federal level this took place from  2008 through 2021througt the so-called education premium (Bildungsprämie), which consisted of the two components premium voucher (Prämiengutschein) and savings voucher (Spargutschein). The education premium consists of the two components premium voucher and savings voucher. Those interested in continuing education could receive a subsidy of up to Euro 500 to finance continuing education measures (premium voucher) if certain conditions are met. The financing of further training measures has been facilitated by the opening of the Capital Accumulation Act (savings voucher).

In addition, the majority of the Länder have their own regulations for the promotion of non-formal vocational continuing education and training, which support the vocational continuing education and training of employees and their guidance under designations such as (further) education cheque, qualification cheque, qualification cheque or continuing education and training bonus. The programmes differ from the earlier training premium in terms of objectives, target groups and funding conditions. In addition, there are voucher programmes in some federal states which are aimed exclusively at employers to promote their employees.