Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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1002. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated cost of increasing the subsidy under the affordable childcare scheme from €20 to €100 per child per week. [31663/21]

Roderic O'Gorman (Dublin West, Green Party)
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The introduction of the National Childcare Scheme (NCS) was a landmark moment for making high quality childcare more affordable and accessible to families in Ireland.

The NCS is designed to be flexible and highly inclusive, and aims to meet the needs of those families who need it the most. The Scheme is based on the principle of progressive universalism and has regard to the best interests of children. The universal subsidy is available to all families with children aged between 24 weeks and 36 months (or until the child qualifies for the Early Childhood Care and Education programme if later). The universal subsidy is based on the child’s age, and not on family income levels.

It is assumed that the €20 referred to in the question refers to the maximum universal rate as it existed prior to Budget 20. The maximum universal subsidy has increased from €20 per week to €22.50 per week since September 2020.

The current cost of a universal subsidy is €0.50 per hour and this equates to a maximum of €22.50 per week per child. Increasing the universal subsidy to €100 per week for 45 hours would require a subsidy of €2.22 per hour and would increase the total scheme cost by approximately €65million per annum. This costing also includes the cost of applying €100 as a base rate for the income assessed subsidies.

These figures are calculated using a funding model of the NCS which is based on key assumptions around the preferences and behaviours of parents relating to working hours and childcare choice, rates of growth in demand, and certain metrics are extrapolated from available data. It is also based on a return to the expected growth levels which were estimated prior to the impact of Covid-19.

Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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1003. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated cost if the State were to provide by way of direct payment to childcare providers the money necessary to fund sectorwide pay increases of the living wage amount of €12.30 per hour for current level 5 childcare staff working in the sector. [31667/21]

Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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1022. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated cost if the State was to provide the funding necessary to fund the sector such as pay increases to the living wage of €12.30 per hour for the current level 5 childcare staff working in the sector by way of direct payment to childcare providers. [31905/21]

Roderic O'Gorman (Dublin West, Green Party)
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I propose to take Questions Nos. 1003 and 1022 together.

I am conscious of the need for significant improvement in pay and working conditions for practitioners in early learning and childcare services. The level of pay they receive does not reflect the value of the work they do for children, for families and for the wider society and economy.

As the State does not employ early learning and childcare practitioners, the Deputy will appreciate that my Department cannot set wage levels or determine working conditions for staff in the sector.

Based on figures available from the Pobal Annual Early Years Sector Profile 2018/19, of approximately 26,000 staff working directly with children, it is estimated that 60% (or 15,600) are paid below €12.30 per hour and 40% (or 10,400) are paid €12.30 or more.

On this basis, it can be estimated that the annual cost of raising the wages of all early learning and care and school-age childcare practitioners to at least €12.30 per hour would be approximately €30 million. The additional cost to employers for this in terms of employer PRSI and holiday pay would be €6m, bringing the total cost to €36m.

My Department does not currently have a breakdown of this cost specifically for raising the wages for practitioners who hold a level 5 award as their highest qualification. It should be noted that a proportion of those working in the sector who have qualifications higher than level 5 (at levels 6, 7 and 8 on the National Framework of Qualifications) also earn less than €12.30 per hour. For example, while data from the 2018/19 Pobal Annual Early Years Sector Profile shows the average wage of practitioners with a level 6 qualification to be €12.63 per hour, the average wage for early years assistants working in non-ECCE rooms who have a Level 6 qualification was €11.18 per hour.