Dáil Éireann Debate, Tuesday - 4 July 2023
105. Deputy Ruairí Ó Murchú asked the Minister for Children, Equality, Disability, Integration and Youth if consideration is being given during the process ahead of Budget 24 to the issues of wages and job progression in the childcare sector; if consideration is being given as to how costs can be reduced for parents in the same context; and if he will make a statement on the matter. [32457/23]
Amharc ar fhreagraAs early learning and childcare services are private businesses, the State is not the employer. As a result, my Department cannot set wage levels or determine working conditions for staff in the sector.
My Department has provided a range of supports to service providers to enable them to improve wages and working conditions. In particular, there is now, through the independent Joint Labour Committee process, a formal mechanism by which employer and employee representatives can negotiate pay rates.
With effect from the 15th September 2022, two new Employment Regulation Orders for Early Years Services negotiated through the JLC came into effect, which provide for minimum hourly rates of pay for different roles.
The Orders are supported by Core Funding, which has an allocation of €259 million in its first year, to support improvements in staff wages, alongside a commitment to freeze parental fees and sustainability of services. As announced in Budget 2023, the Core Funding allocation will increase by €28 million for the second year, which runs to summer 2024. I understand the JLC is continuing to meet to discuss possible changes to the EROs.
I am also committed to addressing other challenges which may impact on recruitment and retention of staff. In 2021, I published Nurturing Skills, the Workforce Plan for the sector. This Plan includes specific actions for moving to a graduate-led workforce by 2028, establishing a career framework for staff, and strengthening career pathways.
My Department has made a number of recent enhancements to the National Childcare Scheme to reduce the cost of early learning and childcare for parents. These include:
• Removal of the practice of deducting hours spent in pre-school or school from NCS awards, meaning that parents are able to use their full awarded subsidised NCS hours regardless of whether their children are in pre-school or school.
• Increase in the upper age eligibility for the NCS universal subsidy from 3 years to all children under 15 years.
• An increase in the NCS minimum subsidy from €0.50 to €1.40 per hour.
The NCS is specifically designed to allow for rapid changes to subsidies, income thresholds and certain other eligibility criteria as Government decisions are made and Exchequer funding becomes available.
Any further changes to Core Funding, the NCS or other funding schemes will be considered as part of Budget 2024.
