Róisín Shortall (Dublin North West, Social Democrats)
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486. To ask the Minister for Children, Equality, Disability, Integration and Youth the steps taken in Budget 2023 to reduce crèche fees for parents; the steps that he is taking to improve the pay and conditions of childcare workers; and if he will make a statement on the matter. [48491/22]

Roderic O'Gorman (Dublin West, Green Party)
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Affordable, accessible, high-quality and sustainable early learning and childcare is a key priority for Government. In December 2021, Government adopted the 25 recommendations contained in an Expert Group report, Partnership for the Public Good: A New Funding Model for Early Learning and Care (ELC) and School-Age Childcare (SAC).On 15 September, I launched Together for Better, the new funding model for early learning and childcare. This new funding model will support delivery of ELC and SAC for the public good, for quality and affordability for children, parents and families.

Together for Better brings together three major elements, the Early Childhood Care and Education programme, including the Access and Inclusion Model, the National Childcare Scheme and Core Funding, in line with the Employment Regulation Orders coming into effect.

Core Funding is the new funding stream worth €266 million in 2023 to start this partnership for the public good between the State and providers. Its primary purpose is to improve pay and conditions in the sector as a whole and improve affordability for parents as well as ensuring a stable income to providers.

As a condition of receiving Core Funding, a Partner Service agrees not to increase the fee for any Service Type which was extant on September 30 2021 or introduce an extra charge for any component of that Service Type. The fees policy for each service is outlined in the Parent Statement, a copy of which must be shared with parents within a month of Core Funding beginning or the parent joining the service, whichever is the later. This gives parents greater certainty about what they will be charged and ensure that increases to NCS subsidies are not absorbed by fee increases. The approach to fee management will be developed further over time.

To date, over 90% of eligible services have become Partner Services under Core Funding, committing to working in partnership with the State for the public good, and to a freeze on parental fees. A list of Partner Services is available here: first5fundingmodel.gov.ie/together-for-better/

Budget 2023 introduced further enhancements to the NCS. From January 2023, any family who is not already at the maximum hourly subsidy will see an increase in their subsidy. All families who would currently receive the minimum (universal) subsidy of 50c per hour will receive €1.40.

For those who receive a subsidy under the income assessed subsidy, the amount of the increase will taper down as they approach the maximum hourly subsidy rate. The reason for this is that the aim is to reduce co-payments by an average of 25 per cent; those currently in receipt of the highest subsidies pay the lowest co-payments.

The amount of increase individual families will see in their per hour subsidy, will differ widely depending on their current subsidy.

As the State does not employ early years educators and school-age childcare practitioners, I cannot set wage levels or determine working conditions for staff in the sector. However, there has recently been an important and historic development with the setting of new minimum hourly rates for various roles in the Early Years Services sector.

On 15 September 2022, the first ever Employment Regulation Orders for the Early Years Services sector came into effect, setting new minimum hourly rates of pay for various roles in the Early Years Services Sector as follows:

- €13.00 for Early Years Educators/ School-Age Childcare practitioners;

- €14.00 for Early Years Lead Educators / School-Age Childcare co-ordinators;

- €15.50 for Graduate Early Years Lead Educators / School-Age Childcare co-ordinators

- €15.70 for Deputy Managers;

- €16.50 for Managers; and

- €17.25 for Graduate Managers.

The Orders are being supported by Government’s Core Funding scheme which commenced on the 15^thSeptember, and will see increases in funding to early learning and childcare services to support improvements in staff wages, alongside a commitment to freeze parental fees. It is estimated that 73% of those working in the sector will see their wages rise as a result of the Employment Regulation Orders with the wages of 50% of employees in the sector expected to rise by 10% or more, and the wages of 20% of employees are expected to rise by 20% or more.

I am also committed to addressing other challenges which may impact on the recruitment and retention of staff in the sector. In December 2021, I published "Nurturing Skills: The Workforce Plan for Early Learning and Care (ELC) and School-Age Childcare (SAC), 2022-2028". Nurturing Skills aims to strengthen the ongoing process of professionalisation for those working in early learning and care and school-age childcare. One of its five "pillars" comprises commitments aimed at supporting recruitment, retention and diversity in the workforce, and it includes actions to raise the profile of careers in the sector.