I 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 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. 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.
Among other objectives, Core Funding supports the ability of service providers to meet the additional costs resulting from the EROs for Early Years Services, 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.
Core Funding has seen consistent increased State investment to the sector year on year, and is set in year 4 to be worth over €390 million contingent on the establishment of new minimum rates of pay in the sector through updated Employment Regulation Orders. This is an increase of over 50% since the scheme began in September 2022 with an allocation of €259 million.
The Core Funding base rate factors in some key conditions, to ensure services viability, including, costs associated with staff pay, costs associated with administrative staff/time and non-pay costs such as utilities needed to run the service.
A total allocation of €207m for the 2022/2023 programme year was allocated as a contribution towards supporting improved pay rates across different categories of staff in the sector and was contingent on the sectors first Employment Regulation Orders taking effect.
Although, the cost of delivery components such as improvements to staff pay have been used to derive the base rates the eligible areas of expenditure of the Core Funding grant are much broader. Partner Services can choose how to spend their Core Funding grant in accordance with the approved areas of expenditure outlines in the Funding Agreement. Sectoral Employment Regulation Orders set out a legal minimum rate of pay which employers in this sector must meet. However it is open to any employer to pay above these minimum rates.
In Year 2 of Core Funding, an additional €4m was allocated to remove the experience requirement on both Graduate Premiums under Core Funding, underpinned by new Employment Regulation Orders. This move was widely welcomed in the sector, and was alongside increases to the full allocation of the scheme.
In the fourth programme year which begins in September, an additional €45 million has been ringfenced to support employers meet the costs of further increases to the minimum rates of pay and is contingent on updated Employment Regulation Orders coming in to affect. Combined, and contingent on the third any successive Employment Regulations Orders, the Core Funding allocation will exceed €390 million in year 4.
Through the Joint Labour Committee process and support through the Government’s Core Funding scheme, Employment Regulation Orders have been signed into law in September 2022 and June 2024 to progressively increase wage rates in the sector for staff at different grades. The associated increases in minimum rates of pay saw increases for over 70% and 52% of staff working with children in the sector.
I recently welcomed new proposals for increases to minimum rates of pay for Early Years Educators and School-Age Childcare Practitioners which have been put forward by the Joint Labour Committee members. If these proposals are implemented through updated Employment Regulation Orders, they will bring much-needed improvements in pay for these dedicated professionals, enhancing the quality of care and education provided to children across Ireland.
The Programme for Government commitment is to continue to implement Employment Regulation Orders to attract and retain early years educators.