Mairead Farrell (Galway West, Sinn Fein)
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244. To ask the Minister for Children, Equality, Disability, Integration and Youth if he will provide an update on plans for year 2 of Core Funding for the early learning and childcare sector; when the details of the next pay agreement will be available; and if he will make a statement on the matter. [9402/23]

Roderic O'Gorman (Dublin West, Green Party)
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On 15th September, I launched Together for Better, the new funding model for early learning and childcare. This new funding model supports the delivery of early learning and childcare for the public good, for quality and affordability for children, parents and families as well as stability and sustainability for providers.

Together for Better, the new funding model comprised of the Early Childhood Care and Education (ECCE) programme, including the Access and Inclusion Model (AIM), the National Childcare Scheme (NCS) and the new Core Funding scheme, is about getting the most out of the three early learning and childcare programmes, for children, parents, providers, the workforce, and society overall, and ensuring stability and sustainability in the sector. A fourth strand of funding under Together for Better - to tackle disadvantage - is under development.

Core Funding has a budget of €259 million in full year costs for year 1 of the programme (September 2022-August 2023) to start the partnership for the public good between the State and providers. Core Funding is designed to support a range of objectives, including supporting the new minimum rates of pay for workers as determined by the Employment Regulation Orders (EROs), as well as supporting career pathways and graduate employment. The first EROs came into effect on 15th September 2022, improving rates of pay for 73% of the workforce.

In Budget 2023, an additional €28 million was secured to increase the Core Funding allocation to €287 million for Year 2 of the Scheme.

I have committed €4 million of that additional allocation in Year 2 to remove the 3-year experience rule for graduate premiums (subject to an amendment to the EROs) with the remaining €24 million to introduce other developments to the Scheme – that will continue to focus on meeting the combined objectives of Core Funding - improved quality for children, including through pay and conditions for staff in the sector, improved affordability for parents, as well as ensuring a stable income to providers.

Further interrogation of the new Core Funding application data is required in order to most effectively design developments in Year 2 of the scheme.

The State is not the employer and therefore does not set the pay and conditions for employees in early learning and childcare services. However, there is now, through the JLC process, a formal mechanism established by which employer and employee representatives can negotiate new pay rates for this sector.

An ERO is an instrument drawn up by a JLC, adopted by the Labour Court, and given statutory effect by the Minister of State for Business, Employment and Retail. The ERO fixes minimum rates of pay and conditions of employment for workers in specified business sectors: employers in those sectors are then obliged to pay wage rates and provide conditions of employment not less favourable than those prescribed. The Industrial Relations Act 1946 sets out the process for adopting an ERO.

The drawing up of new EROs is an independent process under which the Department has no role. However, I have signalled that of the additional funding secured in Budget 2023 for Core Funding, at least €4m will be available to support improvements to pay of the workforce and will be contingent on new EROs being in place that do not specify a 3-year experience requirement.