Delay in Pay Deal Risks Over €4 Million in Childcare Funding

The delay in ratifying a previously agreed pay increase for childcare workers threatens to return over €4 million in government funding back to the treasury. This funding, which represents approximately 10 percent of the total €45 million earmarked for the early years sector, was intended to support pay increases for more than 30,000 workers in the industry.

The funding year for the childcare sector began on September 1, 2023, with plans to distribute the funds evenly across 52 weeks. The delay stems from the failure to ratify a pay agreement reached by representatives of both owners and staff during a Joint Labour Committee (JLC) process earlier this summer. As a result, the sector is losing approximately €865,000 in public funding each week.

During a conference at Liberty Hall in Dublin, Norma Foley, Minister for Children, Disability and Equality, expressed her commitment to ensuring that all government funding reaches the intended sector. She emphasized her desire to see improvements in pay and conditions for staff but acknowledged the independence of the JLC process, stating, “I have to respect that.” Foley indicated that she hopes the ratification process will conclude “within weeks.”

The delay has drawn criticism from industry representatives. Darragh O’Connor from Siptu stated that the hold-up is due to delays on the employer side in finalizing the agreement. He remarked, “It’s not the first time that has happened – the previous deal took over a year to conclude. We need these deals to be concluded in good time so educators don’t lose out like this.”

Foley reiterated the government’s commitment to achieving the targets outlined in its programme for the sector, which includes reducing childcare fees for parents to €200 per month. The extent of progress during the current budget will depend on the funding allocated to her department. Negotiations between Foley and Jack Chambers, Minister for Public Expenditure, are ongoing, with one meeting already held last week and another scheduled for the coming days.

The Minister noted that initiatives introduced by the previous government have enabled many low-income families to pay rates at or below the OECD average for childcare. However, she acknowledged that families with middle and high incomes still face “very high fees.” Reports suggest that the upcoming budget may include measures aimed at assisting families burdened with the highest fees, particularly those with three or more children.

In a push for reform, Siptu’s Diane Jackson expressed the union’s desire to see the first publicly operated early years service established next year. John King, the union’s assistant general secretary, urged Foley to initiate a transformative change in access to early years education, akin to the reforms made by her predecessor in secondary education in 1967.

While Foley emphasized the importance of public-run services in addressing regional shortages, she could not provide a timeline for their implementation. Former Minister for Children Roderic O’Gorman encouraged immediate action, stating, “I know from experience that if you want to see results in years three, four and five, you have to act in year one.”

The situation underscores the urgency of addressing pay and funding issues within the childcare sector, as delays continue to impact the financial support aimed at improving the welfare of both workers and families relying on early years education.