Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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121. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated total income, public money and parental fees, respectively that is paid to providers in a year; if the suggestion in a report (details supplied) in relation to the make-up of provider income still stands; and if not, if the rates have changed following the impact of Budget 2022 provisions. [3650/22]

Roderic O'Gorman (Dublin West, Green Party)
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My officials have estimated that the total income to the sector of both public funding and parental fees is approximately €1 billion. 60% of the sector's income is estimated to come from the State with the remaining 40% from parental fees.

The Deputy will be aware that the amount of State funding provided to the sector continues to increase. Budget 2022 makes provision for €69 million to be invested in the sector between September and December through a new funding stream called Core Funding. This is equivalent to €207 million in full year costs from 2023. Adding the full year cost of this additional budget line, and assuming no other changes, would equate to an income breakdown of 66% from State funding, 34% from parental fees.

Budget 2022 makes provision for a €37 million Transition Fund to support services following the end of EWSS until the introduction in Core Funding. This is a one-off Covid-19-related measure.

A number of enhancements to the National Childcare Scheme were also announced in Budget 2022. These changes will result in changes to the breakdown in income to the sector between public funding and parental fees, but the precise impact depends on a number of factors, including changes in the capacity of the sector, parental usage and fees, and scheme uptake.

These figures exclude State funding provided outside of my Department's schemes, notably the Employment Wage Subsidy Scheme (EWSS), which represents a substantial support for the sector. EWSS at enhanced rates amounts to €34 million per month, and at standard rates it amounts to €22 million per month.

Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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122. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated total wage bill of the childcare sector; the estimated number of providers covered by public funding; and the schemes that provide same. [3651/22]

Roderic O'Gorman (Dublin West, Green Party)
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To estimate the wage bill of the sector, my officials have analysed data from the Annual Early Years Sector Profile 2019/20, gathered in Spring 2020. This analysis estimates the (pre-Covid-19) wage bill. This data is assessed to be a better predictor of likely wage costs during Covid-19, given the distorting impact of both public health measures and the Employment Wage Subsidy Scheme on pay costs.

Using available data for directly employed staff working with children on average hours worked, average wages, including PRSI and holiday pay, costs were derived. The cost per week of directly employed staff working with children is €11.5m. Using a similar methodology for managers and other ancillary staff who do not work with children, the cost is €1.9m per week. Taken together, this amounts to €13.4m. Applying an uplift to the number of staff at a similar rate across a number of years pre-Covid-19 (3%) and staff pay increases (1% in 2021, based on initial analysis of 2020/21 Sector Profile data; and 3% in 2022, based on typical pre-Covid-19 annual increases in pay), the weekly cost of directly employed staff is estimated to be €14.8m in 2022. Approximately, 38% of staff work 38 weeks per year. It is assumed the remaining 62% hold 52 week contracts. Based on this data, the annual cost of directly employed staff in 2022 (pre-Covid-19 conditions) is estimated to be €690.9m.

This figure 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.

Using a similar methodology, the weekly cost of staff on State employment and training schemes is estimated to be €0.97m. This can be uplifted to €1m for 2022. Again, assuming the variance in weeks worked, the annual cost of these staff in 2022 is estimated to be €48.4m.

Based on the above, the overall annual staff cost is estimated to be €739.3m.

There are 4,311 services that have received funding under at least one of my Department's schemes, listed below, in the 2021/22 programme year:

NCS

ECCE

CCSP

AIM

PSP

Capital Ventilation Grant