Roderic O'Gorman (Dublin West, Green Party)
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Core Funding - introduced in September 2022 - has already proven to be effective in expanding capacity, particularly in areas of undersupply and additional funding secured in Budget 2023 for year two of Core Funding provides further opportunity to invest in an additional 3% growth in capacity.

For Year 2 of Core Funding, the budget has increased by 11% to reach €287 million, providing a sustainable platform for investment with increases for all services.

The additional funding for Core Funding Year 2 is being allocated as follows:

• €8.47 million towards funding the natural growth of the sector,
• €6.11 million towards non-staff overheads, to support services with increases to non-staff costs, while maintaining the fee management system,
• €2.2 million towards administrative staff time,
• €4 million towards the removal the year 3 requirement for the Graduates Premiums, underpinned by EROs, and
• €7.22 million for new targeted measures which are aimed at improving the sustainability of smaller and sessional services. These include a flat rate allocation of €4,075 for all sessional-only services, which will benefit approximately 1,700 services delivering ECCE, and a minimum base rate allocation of €8,150, which will benefit small, part time and school-age services.

The network of 30 City/County Childcare Committees across the country are in a position to match children and families to services operating with vacant places and engage proactively with services to explore possibilities for expansion among services, particularly where there is unmet need.

I acknowledge that many early learning and care (ELC) and school-age childcare (SAC) services report staffing difficulties in relation to recruitment and retention. In general, staffing pressures in the sector are caused not by insufficient supply of qualified personnel, but by high levels of staff turnover.

Providers of ELC and SAC are private businesses. As the State does not employ staff in ELC and SAC services, neither I nor my Department can set wage levels or determine working conditions for staff in the sector.

However, there is now, through the independent Joint Labour Committee (JLC) process, a formal mechanism established by which employer and employee representatives can negotiate minimum pay rates for different roles in ELC and SAC services. In line with the provisions of the Industrial Relations Acts, the JLC is independent in its functions, and I do not have a role in its statutory processes.

The Employment Regulation Orders published last year were a significant milestone in efforts to improve pay in the sector. The Orders are being supported by Core Funding – which has an allocation of €259 million in its first year – to support amongst other things, improvements in staff wages, alongside a commitment to freeze parental fees and support for sustainability of services. As announced in Budget 2023, the Core Funding allocation will increase by €28 million for the second year. I understand that the JLC for Early Years Services is continuing to meet in relation to possible further increases in minimum rates of pay.

I am also committed to addressing other challenges which may impact on the recruitment and retention of staff in the sector. In line with commitments in First 5, in December 2021, I launched Nurturing Skills: The Workforce Plan for ELC and SAC, 2022-2028. Nurturing Skills aims to strengthen the ongoing process of professionalisation for those working in ELC and SAC.

Nurturing Skills includes specific actions for moving to a graduate-led ELC workforce by 2028, establishing a career framework for staff working in the ELC and SAC sector, including role profiles and qualification requirements, and the strengthening of career pathways. Nurturing Skills also includes actions to support the recruitment and retention of staff with the necessary qualifications, and ongoing staff training and development, to create a workforce which feels valued and is motivated to deliver the best possible service to children.??

I am committed to supporting providers in responding to current staffing challenges. Over the coming weeks, a sub-group of the Early Learning and Childcare Stakeholder Forum will be convened to discuss current staffing pressures and additional measures that may be needed.

Some €69 million has been allocated over the period 2023-2025 to the early learning and childcare sector under the revised National Development Plan (NDP). This will enable significant capital investment in early learning and childcare across three pillars:

• Building Blocks - Improvement Grant;
• Building Blocks - Capacity Grant; and
• Building Blocks - Innovation Grant.

Under the Building Blocks - Improvement Grant, €9 million was allocated earlier this year in grants ranging from €35,000 to €75,000 for energy upgrades and retrofit projects, which has supported services in need of upgrading, such as kitchen refurbishments, roof repairs and the replacement of flooring. This scheme is now closed and my Department does not have further funding available in either 2023 or 2024 under the Building Blocks - Improvement Grant.

Work is currently underway on the design and delivery of Pillars 2 and 3, which have a combined allocation of €20 million in 2024 and €40 million in 2025. Pillar 2, the Building Blocks – Capacity Grant, will fund an expansion of existing services in areas of undersupply. Funding will also be provided to support the development of new services, where most needed.