Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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660. To ask the Minister for Children and Youth Affairs the cost per year of the ACS in the event that the wage rate for educators is revised from the current proposed wage rate for level 5 educators to €11.50 an hour, €13.00 an hour for level 6 educators and €14.75 an hour for level 7 educators. [24169/17]

Katherine Zappone (Dublin South West, Independent)
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Wages in the early years sector are unacceptably low and working conditions are poor. This affects the quality of service offered to children. Addressing these issues is a priority for me as Minister for Children and Youth Affairs. As my Department is not the employer, however, I have no direct control over wages or working conditions. Similarly, as my Department is not the employer, there is no proposed wage rate for educators delivering the Affordable Childcare Scheme. Educators’ wages will be determined by their employers.

The Affordable Childcare Scheme aims to make childcare more affordable, particularly for families with low incomes, supporting labour market participation and the reduction of child poverty. As a scheme to make childcare more affordable, it cannot in itself address all the challenges that face the early years sector. If we are to tackle the issues of wages and poor working conditions in the early years sector, we will need a variety of policy tools.

That said, the Affordable Childcare Scheme will significantly increase the level of public investment in the sector and it will create a framework for further future investment.

The subsidy-rates proposed for the Affordable Childcare Scheme reflect the current cost of delivering childcare, including current wage rates. If wage rates were to rise, my Department would have to examine the possible need for subsidy rates to rise to reflect the higher cost of delivery for childcare providers. Subsidy rates are a matter for Government decision – they would not rise automatically in line with changes in wages.

If, however, we assume that a decision was made to raise subsidy rates proportionally to reflect a rise in wages to €11.50 to educators qualified to Level 5 on the National Framework of Qualifications, €13.00 for Level 6 educators, and €14.75 for Level 7 educators, and if we assume that there were no change in the proportion of educators at each of these qualification levels, and if we also assume that managers earn the same wage as Level 7 educators, then it can be estimated that the full year costs of the Affordable Childcare Scheme would rise from approximately €150 million to approximately €172 million.

To help support the future development of the Affordable Childcare Scheme, as well as the ECCE programme, I will shortly be commissioning an Independent Review on the Cost of Quality Childcare. Among other things, this review will examine the link between wages, the quality of provision, and public funding. Its conclusion will be of great assistance to my Department as we consider the policy tools available to us to address the issues of wages and working conditions.