A contribution of up to 10% of the cost of training from employees using the professional development funding scheme known as CPF is being considered by the government. This measure will undoubtedly have an impact on professional training organisations, which are already facing a number of challenges. The experts at AURIS Finance, a consultancy specialising in mergers and acquisitions, take a closer look at this new development.
An article in the 2023 Finance Act introduces a financial contribution for employees who wish to use their personal Professional Development Funding Scheme. This provision has not yet been implemented due to the lack of an enactment. However, the government has announced that the measure should come into effect in April.
10% of training costs to be paid by employees
In practical terms, employees will have to reach for their wallets if they want to use their Professional Development Scheme. The details have not yet been announced. On 19 February, Thomas Cazenave, the French Minister of Public Accounts, spoke to France Info news channel about the possibility of a 10% contribution to be paid by the employee receiving the training, with jobseekers not affected by this measure. It should be noted that this amount will not be paid by employees who receive a matching contribution from their company. However, other options are being considered, such as a contribution proportional to the cost of the training, subject to a cap, or a flat-rate contribution. However, this measure should not discourage the most motivated employees. Indeed, according to a recent study by the training organisation Lefebvre Dalloz Compétences, 93% of employees say they are interested in training and 72% of them are willing to invest money in training.
A reluctant professional training sector
The measure is part of an avalanche of reforms aimed at saving €10 billion by 2024. In 2023, the CPF cost the state two billion euros. The introduction of an employee co-payment would save €200 million. The professional training sector reacted immediately. In a press release, Les Acteurs de la compétence, the leading federation of training organisations with a membership of 1,400 companies, deplored “the abruptness of the timetable, the rigidity of the method, and the inconsistencies of the government”, arguing that “the introduction of a 10% user fee would drastically limit access to the CPF for all”.
Training organisations are under scrutiny
This new measure comes at a difficult time for professional training specialists. As early as July 2022, in a report on France Compétences, the Cour des Comptes (France’s highest audit institution) criticised the “uncontrolled growth” of expenditure “linked to the CPF” and called for “new supervisory measures”. In 2023, the CPF came under increased scrutiny. The Caisse des Dépôts et des Consignations (France’s institutional investor), France Compétences and all the players in the sector have worked hard to combat fraud, which has enabled the overall cost of the CPF to be significantly reduced.
Our experts at your side
The coming months could see strategic mergers between players in the professional training sector, enabling some of them to better comply with regulations. At AURIS Finance, our experts are specialised by sector. Whether you are looking for a buyer or a new target, we are here to work alongside you.
