Kieran O'Donnell (Limerick City, Fine Gael)

I thank the Deputy for raising this important matter. I am taking this Topical Issue on behalf of the Minister for public expenditure and reform, Jack Chambers TD.

The community and voluntary sector plays a vital role in delivering public services across Ireland. Various organisations in the community and voluntary sector are contracted to provide services on behalf of the State and are provided with funding for this purpose. These organisations are not public service bodies, nor are they employees of these organisation public servants. Accordingly, their terms and conditions, including remuneration, are a matter for the individual employers and employees as part of the employment relationship.

The number of staff employed in the community and voluntary sector as a whole is difficult to determine but it is estimated to be up to 100,000. The level of State funding received by these organisations, and the extent to which it is supplemented by other sources, such as philanthropy or fundraising, varies significantly from one organisation to another.

For many organisations in the sector, the majority of their funding ultimately comes from the State. They do great work.

Generally, this funding is used to service payroll and other organisational costs. These organisations include section 39 bodies, which receive grant funding from the HSE through the Departments of Health, and Children, Disability and Equality to provide health and disability services under section 39 of the Health Act 2004. Section 56 bodies receive funding from Tusla, through the Department of Children, Disability and Equality, for child and family services under section 56 of the Child and Family Agency Act 2013. Section 10 bodies receive funding from local authorities for homeless accommodation and related services under section 10 of the Housing Act 1988.

In October 2023, unions representing workers employed by organisations grant funded in line with section 39 of the Health Act 2004, section 56 of the Children and Family Agency Act 2013 and section 10 of the Housing Act 1988 secured agreement at the WRC for an increase in funding for these organisations, which would allow them to provide for an 8% increase in pay to their employees. The last increase under this agreement was 3% paid on 1 March 2024. The agreement reached provided for further engagement that would have regard to building momentum and other public service pay agreements.

This year, agreement was reached on 10 March at the WRC following talks led by the Department of Children, Disability and Equality on the management side with unions representing sections 39, 56 and 10 workers. This agreement set out that funding would be made available to provide for an increase of 9.25% on a phased basis between 1 October 2024 and 1 October 2026. This agreement was accepted in a ballot of union members. The agreement addresses the funding required to move the pay of such workers in line with current and future public service pay agreements, while respecting the fact that such workers are not public service employees.

The agreement provides for an increase in funding of 9.25% on a phased basis and runs to 31 October 2026. This is in line with the general round increases provided for in the Public Service Agreement 2024-2026. The agreement provides that funding will be adjusted to allow for the application of equivalent general round pay adjustments as provided for in any successor agreement to the Public Service Agreement 2024-2026. In addition, the adjustment will be in line with the phasing of any future public service pay agreements.

The agreement reached was accepted by union members in these organisations. It also provides for a data gathering exercise to allow for the application of the low pay provisions in future public service pay agreements for the funding of these organisations.

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