Dáil Éireann Debate, Tuesday - 29 April 2025
88. Deputy Peter 'Chap' Cleere asked the Minister for Children, Equality, Disability, Integration and Youth her views on the €45 million allocated under budget 2025 to support further increases to the minimum rates of pay in the childcare sector. [20553/25]
View answerWhat are the Minister's views on the €45 million allocated under budget 2025 to support further increases to the minimum rates of pay in the childcare sector, a measure which will ensure providers can continue and improve the pay for staff of the childcare providers?
I thank the Deputy and I appreciate the question. The Deputy has engaged with me on an ongoing basis on this.
As I have stated previously, the State is not the employer of staff in the sector and neither I nor the Department can set their pay or determine working conditions. The joint labour committee is the formal mechanism established by which employer and employee representatives can negotiate minimum pay rates set down in employment regulation orders.
As I have said previously, I acknowledge that the joint labour committee is wholly independent in its functions and I do not have a role in its statutory negotiation process. Outcomes from the joint labour committee process are supported by Government through core funding, which will increase to €350 million in the programme year 2025-26. As the Deputy has referenced, an additional €45 million has been ring-fenced to support employers to meet the costs of further increases to the minimum rates of pay and is contingent on updated employment regulation orders.
As I have already said, I met recently with joint labour committee representatives to acknowledge the committee's important role and work and to outline the Government’s continued support for the sector as a whole and for the entire joint labour committee process, as outlined in the programme for Government. As I have reiterated, I outlined to representatives that the Government expects that the funding secured to support the costs of increased minimum pay rates to be used for its intended purpose - that is the absolute clarity: the money is ring-fenced and it should be used for the intended purpose - and that any new employment regulation orders would utilise the amount in its entirety. Data available to the Department shows previous employment regulation orders have not absorbed the available core funding signalled for staff pay and graduate leaders. The level of pay for staff in the sector does not reflect the value of the work being done by the employees for children, families, society and the economy. It is hugely important, therefore, that the committee engage in productive negotiations to ensure the high level of investment being made through core funding for improved pay is maximised. I look forward to the outcome of the joint labour committee.
I appreciate the Minister's comments and her clarification and confirmation that the money is ring-fenced.
Does the Minister agree that for children to achieve their full potential, they need opportunities for care and education, that key to ensuring the availability of these opportunities is the retention of qualified staff and early educators in the childcare sector, and key to this is increased rates of pay for the staff? Reports of the talks on the employment regulation order, which is necessary to implement the increased rates of pay, having stalled are concerning, both for those employed within the sector and, in particular, for parents, many of whom I have met in recent weeks in my constituency of Carlow-Kilkenny. I encourage the Minister to do everything she can to support every stakeholder to reach an agreement and to ensure the €45 million allocated under budget 2025 is used in full for its intended purpose, which, as the Minister said, is to support the costs of increased pay rates.
I absolutely agree with the Deputy. It is to everyone's benefit, most especially the children, that we have suitably remunerated and qualified staff. That is the purpose of specifically ring-fencing the funding this year. As I have already said, it is my absolute desire that it would be used in full for that purpose.
I also acknowledge that there is significant work under way to support those who might wish to enhance their qualifications through the nurture skills programme, where opportunities are being given for 90% of the costs to be covered for those who might wish to move forward towards a level 7 or level 8 qualification. That is being piloted, there has been a great uptake on it and we look forward to another successful year of it this year.
I also acknowledge, specifically in terms of retention, that the early learning and childcare stakeholder forum now has a subgroup on recruitment and retention looking at a variety of issues, chief among them, of course, the issue of pay, but also other issues that would provide supports right across the sector.
What impact does the Minister foresee if her Department is prevented from passing on the pay increase to childcare staff? I know the money is ring-fenced but if the Minister is not in a position to do it, what impact would that have? More importantly, would it be unlikely that future budgets would provide for pay increases in the sector? The provision of €45 million in 2025 is fantastic, but if we cannot get that allocated, what impact will that have on future budgets?
To ensure every child has the best possible start in life, we must guarantee the availability of affordable, accessible childcare to all families. I hear this week in, week out. I welcome the Minister's earlier comment that the ambition is to have a cap of €200 per month on childcare for all families.
That is very welcome. Implementation of the increased pay rates is essential for building capacity in the sector. We need that €45 million to be allocated to support further increases to the minimum rates of pay for the childcare sector.
I agree with the Deputy; I believe there is unanimity here regarding the €45 million and how it should be spent in full. If the joint labour committee is unable to agree on a new employment regulation order for the start of the 2025-26 year, the ring-fenced €45 million will not be made available at the start of the year either. That is the purpose of it. I am hopeful and it is my wish that everything will be done in advance of the 2025-26 year. Obviously, it is a win-win situation for everyone if the children are being cared for by those who are suitably recompensed and have the qualifications that are required. It is looking after the children, the parents and the providers. Every year since core funding was introduced, we have seen an increase in the number of those who are in this market now. We are also in a process, as I mentioned earlier, where there is a lack of availability. A body of work is being done there to allow the State to step in where necessary.
