Dáil Éireann Debate, Tuesday - 7 March 2017
835. Deputy Donnchadh Ó Laoghaire asked the Minister for Children and Youth Affairs the full-year cost of the affordable child care scheme, ACS, in the event that the wage rate for educators is revised upwards from the current proposed wage rate to €11 an hour and there is a proportionate increase in managers' pay. [12030/17]
View answer836. Deputy Donnchadh Ó Laoghaire asked the Minister for Children and Youth Affairs the full-year cost of the affordable child care scheme, ACS, in the event that the wage rate for educators is revised upwards from the current proposed wage rate to €11.50 an hour and there is a proportionate increase in managers' pay to €14.78. [12031/17]
View answer837. Deputy Donnchadh Ó Laoghaire asked the Minister for Children and Youth Affairs the full-year cost of the affordable child care scheme, ACS, in the event that the wage rate for educators is revised upwards from the current proposed wage rate to €12 an hour and there is a proportionate increase in managers' pay. [12032/17]
View answerI propose to take Questions Nos. 835 to 837, inclusive, together.
I thank Deputy Ó Laoghaire for his questions. They are of a similar nature and so, for the Deputy’s ease of reference, will be answered together in tabular form. An increase in staff wages to the “Living Wage” of €11.50 per hour, with managers’ wages rising proportionately to €14.78, would increase the average unit cost of provision for childcare providers. What impact this would have on the cost of the Affordable Childcare Scheme (ACS) would depend on whether and to what extent the ACS subsidy rates were amended to reflect the change in the cost of provision. There is no automatic link between the cost of provision and the overall cost of the ACS. Any change in the ACS subsidy rates would need to be carefully considered in the light of fee levels and the potential impact on the demand for childcare. However, if it is assumed that the ACS subsidy rates were changed on a proportionate basis in response to a change in the average unit cost of provision, and if there were no change in fee levels and no other change in the ACS, then, on the assumption that the full-year cost of the ACS will be approximately €150 million per year, the table below sets out estimates of how the full-year cost of the ACS would change as a result of the change in ACS subsidy rates.
|
- |
Staff wage(per hour) |
Manager’s wage (per hour), if it increased proportionately |
Increase in full year cost of the Affordable Childcare Scheme (assuming subsidy rates are increased in proportion to changes in unit costs) |
|
Current wages |
€ 10.79 |
€ 13.87 |
|
|
12030/17 |
€ 11.00 |
€ 14.14 |
€ 3m |
|
12031/17 |
€ 11.50 |
€ 14.78 |
€ 9m |
