Written answers

Tuesday, 8 October 2024

Department of Children, Equality, Disability, Integration and Youth

Childcare Services

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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466. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated cost of increasing wages to ERO rates in the early years sector in 2022 and 2024, for early years educators, lead educators, deputy managers and managers, in tabular form. [40165/24]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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I firmly believe the level of pay for early years educators and school-age childcare practitioners should reflect the value of their work for children, families, society and the economy.

The State is not the employer and therefore does not set the pay or conditions for employees in either early learning and care (ELC) or school-age childcare (SAC) services.

However, there is now, through the Joint Labour Committee (JLC) process, a formal mechanism established by which employer and employee representatives can negotiate minimum pay rates for ELC and SAC services, which are set down in Employment Regulation Orders (EROs). This is an independent process from the Department and neither I, nor my officials, have any role in the proceedings of the JLC and any associated negotiated minimum pay rates, the cost of which is borne by the employer.

Among other objectives, Core Funding supports the ability of service providers to meet the additional costs resulting from the EROs for Early Years Services, as it provides increases in funding to early learning and childcare service providers to support improvements in staff wages, alongside a commitment to freeze parental fees.

The calculation for the 2022 EROs are based on Annual Early Years Sector Profile Survey (AEYSP) 2021/22 data, for which data was collected in June 2022, shortly before the EROs came into force. Based on this data, it is estimated that the total cost to employers of bringing staff up to initial ERO rates whose wages were below the proposed ERO rates was €55 million and are set out by role in the table below:

Role
Rates
Total wage cost to meet ERO (incl Employer Cost and Extrap)
Educator Up to 13 € 18,338,367.04
Lead Educator Up to 14 € 9,471,710.89
Grad Lead Educator Up to 15.50 € 11,968,849.48
Deputy Manager Up to 15.70 € 3,370,182.82
Manager Up to 16.50 € 3,318,400.51
Grad Manager Up to 17.25 € 8,416,768.68
Total € 54,884,279.43
Assumptions made for analysing AEYSP datasets were as follows;
  • Where there was no rate of pay recorded for a staff member, the mean rate for the role was used.
  • The same approach was used for those who had incomplete working hours recorded in the dataset.
  • Reported wage rates under €8/hr and over €70/hr were assumed to be erroneous and were replaced by the average pay rate for the role of the individual staff member.
  • A similar approach was used for staff reported to work more than 60 hours a week.
  • Where annual (instead of hourly) incomes had been entered, hourly rates of pay were calculated based on the working weeks and hours entered for the individuals.
  • As there is no indicator within the AEYSP dataset for Graduate Premiums, the proportion of Lead Educators and Managers with Level 7 and above qualifications was estimated based on the proportions of staff in these roles who are receiving Graduate Premiums in Core Funding.
  • The total wage costs include a 20% employer contribution (to reflect PRSI, holiday replacement, and sick pay) and an extrapolation rate associated with the response rate for the dataset.
On the basis of 2024 data supplied by Partner Services taking part in the Core Funding scheme, the estimated costs to employers of meeting the minimum pay rates specified in the June 2024 EROs is €20.1 million and are set out by role in the table below:
Role June 2024 ERO rates Total wage cost (incl Employ Cost and Extrap)
Educator €13.65 € 7,771,855.00
Lead Educator €14.70 € 3,177,695.00
Grad Lead Educator €16.28 € 6,215,036.00
Manager €17.33 € 1,452,891.00
Grad Manager €18.11 € 1,485,582.00
Total € 20,103,059.00
In relation to the estimated costs, the following should be noted:
  • The cost estimates are based on staff who had an hourly wage recorded in service providers’ submissions for Core Funding, but the Core Funding data has been extrapolated to provide an estimate for all staff working in the sector.
  • Cost estimates are based on the most recent data available to the Department which was provided by service providers in May 2024, this data was provided prior to the new EROs for Early Years Services came into force on June 24th.
  • Calculations are based on minimum rates of pay set out in the initial ERO which came into effect in September 2022.
  • The estimated costs are for the additional cost to employers of bringing staff, from their current wage or the minimum pay rates set out in the first EROs, whichever is higher, up to the new ERO rate. E.g. for an early year’s educator, costs are estimated based on current rate of pay up to €13.65 (Initial ERO minimum rate for Educators 13.00+ increased listed 65c).
  • Calculations are based on wage-data available at a point in time. Some services may have increased wages more recently, which would reduce the cost to services of moving from current wage-rates to the propose wage rates in the question.
  • The cost estimates only relate to staff and managers covered by the current EROs, i.e. the estimates exclude the cost of ancillary staff.
  • The cost estimates do not attempt to account for the potential cost implications for the wages of staff who are currently earning more than the increased rates above current ERO minimum rates.
  • Core Funding data on the role of Deputy Manager was inconsistently entered and in small quantities that would not allow for accurate estimates on costing s to be calculate. It is assumed that the role of Deputy Manager is being reflected in the rates of other roles.

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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467. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated cost of giving early years staff a 50c pay increase over twelve months, for all grades. [40166/24]

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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468. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated cost of giving early years staff a 75c pay increase over twelve months, for all grades. [40167/24]

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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469. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated cost of giving early years staff a €1 pay increase over twelve months, for all grades. [40168/24]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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I propose to take Questions Nos. 467, 468 and 469 together.

I firmly believe the level of pay for early years educators and school-age childcare practitioners should reflect the value of their work for children, families, society and the economy.

The State is not the employer and therefore does not set the pay or conditions for employees in either early learning and care (ELC) or school-age childcare (SAC) services.

However, there is now, through the Joint Labour Committee (JLC) process, a formal mechanism established by which employer and employee representatives can negotiate minimum pay rates for ELC and SAC services, which are set down in Employment Regulation Orders (EROs). This is an independent process from the Department and neither I, nor my officials, have any role in the proceedings of the JLC and any associated negotiated minimum pay rates, the cost of which is borne by the employer.

Among other objectives, Core Funding supports the ability of service providers to meet the additional costs resulting from the EROs for Early Years Services, as it provides increases in funding to early learning and childcare service providers to support improvements in staff wages, alongside a commitment to freeze parental fees.

On the basis of 2024 data supplied by Partner Services taking part in the Core Funding scheme, the estimated annual costs to employers of raising all the minimum pay rates specified in the EROs (for different grades and qualification levels) by the rates proposed in the question (making assumptions specified below in relation to equivalent increases for other roles specified in the EROs) are set out in the table:

Pay increase Estimated additional cost to employers
€0.50 €18.4 million
€0.75 €29.9 million
€1.00 €42.3 million
In relation to the estimates above, the following should be noted:
  • The cost estimates are based on staff who had an hourly wage recorded in service providers’ submissions for Core Funding, but the Core Funding data has been extrapolated to provide an estimate for all staff working in the sector.
  • Cost estimates are based on the most recent data available to the Department which was provided by service providers in May 2024.
  • Calculations are there based on minimum rates of pay set out in the initial ERO which came into effect in June 2024.
  • The estimated costs are for the additional cost to employers of bringing staff, from their current wage or the minimum pay rates set out in the first EROs, whichever is higher, up to the new pay rate as listed in the request. E.g. for an early years educator, costs are estimated based on current rate of pay up to €14.15 (Initial ERO minimum rate for Educators €13.65+ increased listed 50c).
  • Calculations are based on wage-data available at a point in time. Some services may have increased wages more recently, which would reduce the cost to services of moving from current wage-rates to the propose wage rates in the question.
  • The cost estimates only relate to staff and managers covered by the current EROs, i.e. the estimates exclude the cost of ancillary staff.
  • The cost estimates do not attempt to account for the potential cost implications for the wages of staff who are currently earning more than the increased rates above current ERO minimum rates.
  • It should be noted that the figures in the table are the additional cost to employers, rather than the additional costs to the State. Core Funding offers a contribution to staff costs. The €350m allocated for Core Funding may already support some employers to pay wage rates above ERO minimum rates.
  • The figures in the table do 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.

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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470. To ask the Minister for Children, Equality, Disability, Integration and Youth if his Department records the number of early years facilities affected by mica, pyrite, defective concrete blocks, and other construction defects, respectively; if such data is publicly available, in tabular form; and if he will make a statement on the matter. [40169/24]

Photo of Roderic O'GormanRoderic O'Gorman (Dublin West, Green Party)
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My Department works with Pobal and local Childcare Committees to offer Case Management Supports to services in difficulty. Through this process, services may also access Sustainability Funding following an assessment of need. One strand of this funding can support a service with the cost of relocation. Services who experience issues with defective blocks or construction issues are encouraged to contact their local City/County Childcare Committee (CCC).

In the first instance the local CCC will assist the service in trying to source a suitable alternative location. If a suitable alternative location is sourced, my Department will engage with Pobal and the CCC regarding the service, and will assist in funding a relocation through the Case Management Process.

My Department is aware of 3 services who have engaged their CCC as they have been affected by mica.

The safety of children and staff is paramount, and the Department has been assured that services will not be able to operate if it is deemed unsafe to do so.

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