I am very conscious of the need for improvement in pay and working conditions for practitioners in early learning and childcare services. The level of pay they receive does not reflect the value of the work they do for children, for families and for the wider society and economy.
As the State does not employ staff in ELC and school-age childcare (SAC) services, I cannot set wage levels or determine working conditions for staff in the sector.
There is now, through the independent Joint Labour Committee (JLC) process, a formal mechanism established by which employer and employee representatives can negotiate pay rates for ELC and SAC services. With effect from 15 September 2022, two new Employment Regulation Orders for Early Years Services which were negotiated through the JLC, came into effect which provide for minimum hourly rates of pay and other conditions of employment for various roles both in early learning and care services and in school-age childcare services.
Core Funding, which began in September 2022, is the new funding stream to start this partnership for the public good between the State and providers. Its primary purpose is to improve pay and conditions in the sector as a whole and improve affordability for parents as well as ensuring a stable income to providers.
Core Funding – which has an allocation of €259 million in its first year - is underpinned by these EROs and is designed to support a range of objectives, including supporting the new minimum rates of pay for workers, as well as supporting career pathways and graduate employment.
Core Funding is designed to meet the combined objectives of:
• Improved affordability for parents by ensuring that fees do not increase;
• Improved quality through better pay and conditions for the workforce by supporting agreement on an Employment Regulation Order through the Joint Labour Committee;
• Supporting the employment of graduate staff; and
• Improved sustainability and stability for services.
It is important to note that Core Funding grants allocated to services can be used on any items, including pay and non-staff costs, in accordance with the Expenditure Guidelines for the scheme.
EROs set minimum pay rates. Providers do have the ability to pay above those set pay rates, but data on most recent pay rates are not yet available to get an accurate reflection of the impact of the EROs on pay in the sector.
Updated wage data is currently being collected from over 4,200 Partner Services to determine latest and accurate information on average wages in the sector. This information should assist the JLC in their ongoing considerations.
For year 2 of Core Funding, I have secured an increase of €28 million, approximately €4 million of which will be used to remove the experience requirement on both Graduate Premiums under Core Funding, underpinned by new EROs. This move was widely welcomed in the sector. The remaining €24 million will be used for further developments and enhancements to the scheme, the precise allocation of which will be determined by evidence and analysis emerging from year one of the operation of the scheme and must be evidence based.
Budget 2023 allocates €1,025m to early learning and childcare – a clear demonstration from Government of the value of the sector. I am committed to working with Partner Services delivering early learning and childcare for the public good.
