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Globalisation, technological and demographic changes have been major factors in highlighting the need for increased learning throughout life. This includes learning in the formal education and training system as well as structured and informal workplace learning and community learning. The author, in this paper, suggests that there is a need to examine the most efficient and equitable way of providing education and training incentives to encourage the financing of education and training by employers and individuals. Section one considers the problems to be addressed: the need for more education and training due to the changing nature of work and patterns of employment and unemployment together with the ageing of the population. Section two discusses what this might mean for increased funding needs, with the answers depending on changes in participation and economies in provision of education and training. Section three considers the restrictions in public expenditure and policy changes accompanying it. Section four addresses options that will encourage the provision of additional funds, suggest the direction of funds to the areas of most need and stimulate efficiency, effectiveness and equity in the use of funds.