Dáil Éireann Debate, Thursday - 9 November 2023
336. Deputy Mark Ward asked the Minister for Rural and Community Development if she will clarify if the funding for local community staff that is part of the community services programme, managed by Pobal, will be increased for 2024 to match the increase in the minimum wage; and if she will make a statement on the matter. [49125/23]
Amharc ar fhreagraMy Department's Community Services Programme (CSP) supports over 420 community-based organisations, to provide local services through a social enterprise model.
The CSP contribution per full-time equivalent position is not aligned with the minimum wage and does not meet the full salary cost of supported posts. It is an annual contribution that must be co-funded by the organisations concerned from other sources, for example, from income generated from the use of facilities and services provided.
Following the independent review of the CSP programme in 2020 by Indecon International Economic Consultants, as part of the restructuring process, a needs-based, differentiated funding allocation model was designed for the programme, as an alternative to the previous flat rate payment model. While the CSP funding allocation is not aligned to the minimum wage level, the new funding rate allocation model which came into effect on 1st January 2023, was designed to support those organisations most in need, providing a higher rate of funding to supported organisations that are identified as operating in areas of high disadvantage, employing individuals from the prescribed programme target groups and with evidence of limited earning potential. Organisations categorised as having a high or medium funding need benefited from increases of €4,000 and €2,000 respectively per Full Time Equivalent and Manager. No change was introduced for the small number of organisations in the low funding category - these are organisations identified with the strongest earning potential and operating in less disadvantaged areas.
In addition to these revised allocations, a reduction in full time hours from 39 to 37.5 hours was approved under the redesigned CSP programme, to narrow the co-funding gap for CSP supported employees even further.
My department is currently reviewing the impact of the increase of €1.40 per hour to the minimum wage level from 1st January 2024, which was announced as part of the recent budget statements. It is expected that the outcome of the review will be made known in the coming weeks.
