Dáil Éireann Debate, Thursday - 26 September 2024
254. Deputy Catherine Murphy asked the Minister for Children, Equality, Disability, Integration and Youth the estimated annual cost of paying the salaries of all early years educators - with a Department-recognised early years qualifications degree at NFQ Level 7 and above - currently working within the sector; and if he will make a statement on the matter. [38286/24]
View answerI firmly believe the level of pay for early years educators and school-age childcare practitioners should reflect the value of their work for children, families, society and the economy.
The State is not the employer and therefore does not set the pay or conditions for employees in either early learning and care (ELC) or school-age childcare (SAC) services.
However, there is now, through the Joint Labour Committee (JLC) process, a formal mechanism established by which employer and employee representatives can negotiate minimum pay rates for ELC and SAC services, which are set down in Employment Regulation Orders (EROs). This is an independent process from the Department and neither I, nor my officials, have any role in the proceedings of the JLC and any associated negotiated minimum pay rates, the cost of which is borne by the employer.
The EROs provide for higher rates for both graduate lead educators and graduate managers. First 5, the ten-year Whole-of-Government Strategy for Babies, Young Children and their Families (2019-2028), commits to a graduate-led workforce, with 50% of staff working with children holding an appropriate qualification at NFQ Level 7, or higher.
Among other objectives, Core Funding supports the ability of service providers to meet the additional costs resulting from the EROs for Early Years Services, which came into effect in September 2022, as it provides increases in funding to early learning and childcare service providers to support improvements in staff wages, alongside a commitment to freeze parental fees. A graduate premium is one of the elements of the Core Funding model.
On the basis of 2024 data supplied by Partner Services taking part in the Core Funding scheme, the estimated annual cost of salaries for all staff with a Level 7 or higher relevant qualification is €407 million.
In relation to the estimate above, the following should be noted:
• The cost estimate is based on staff details, including qualification level, recorded in service providers’ submissions for Core Funding, but the Core Funding data has been extrapolated to provide an estimate for all staff working in the sector with a Level 7 qualification and above.
• Cost estimates are based on the most recent data available to the Department which was provided by service providers in May 2024, this data was provided prior to the new EROs for Early Years Services came into force on June 24th.
• Calculations are based on wage-data available at a point in time. Some services may have increased wages more recently, which would reduce the estimated employer cost of meeting the proposal set out in the Deputy's question.
• The cost estimates only relate to staff and managers covered by the current EROs, i.e. the estimates exclude the cost of ancillary staff.
• The figure provided does not take into account the income currently received by those working in the sector who are self-employed and who derive their income from profits rather than wages.
