2818. Deputy Shónagh Ní Raghallaigh asked the Minister for Children, Disability and Equality her assessment of a policy proposal by an organisation (details supplied) suggesting that the State take on payroll for early years educators with a view to enhancing overall affordability and achieving the target set out in the programme for Government of €200 per month; and if she will make a statement on the matter. [56006/26]

The Joint Labour Committee (JLC) is the formal mechanism established by which employer and employee representatives can negotiate minimum pay rates, which are set down in Employment Regulation Orders (EROs). The JLC is independent in its functions.

Pay and conditions are improving. Through the work of the JLC and successive EROs, minimum pay rates have now risen three times in four years, delivering an average 15% increase in minimum rates of pay. This marks significant progress in professionalising the workforce. The latest ERO, which came into effect in October 2025, saw an increase in minimum pay rates of, on average, 10% and will increase pay for over 67% of staff in the sector.

The Annual Early Years Sector Profile reports an estimated 9% increase in educators and managers working in the sector from 34,807 in 2023/24 to 37,866 in 2024/2025 while the national average turnover rate fell over this period by 1.3% to 24.5% in 2025.

The Central Statistics Office report on Early Learning Care Graduate Outcomes that was released in December 2025 examined outcomes for the 2022 graduates. The report notes that 73% of 2022 graduates found employment in the Early Learning and Care Sector. This has increased from 55% for 2013 graduates.

Outcomes from the JLC process are supported by Government through Core Funding. In this programme year 2025/26 Core Funding has increased by 6% to approximately €350 million with an additional €45 million in ring-fenced Core Funding provided to support services in meeting the increased cost of minimum pay rates in the sector. For programme year 2026/2027, I recently announced that Core Funding will be increased by 23% to €480 million. An additional €45 million has also been ringfenced from September 2026 to support services in meeting the potential costs of increasing rates of pay, contingent upon new EROs being enacted following successful negotiations by the independent JLC.

The estimated annual cost of wages for early years educators and SAC practitioners is approximately €1.27 billion. An estimated 37,400 educators’ wages were supported through Government funding in May 2026. Included in this calculation are staff who are in receipt of funding or partial funding through other Government schemes such as AIM, Equal Start and Community Employment Schemes.

I recognise that supporting the workforce is essential to ensuring quality in early learning and childcare. This funding will help to make further progress on improving pay while maintaining the strong partnership between the State and providers.

In line with the commitment in the Programme for Government to continue to support EROs to attract and retain early years educators, I met with JLC representatives in April to outline the Government's continued support for the improvement of pay for educators and practitioners working in the sector and the JLC process.

A longer-term workforce strategy for the sector is in place: "Nurturing Skills: The Workforce Plan for Early Learning and Care and School-Age Childcare, 2022-2028". Nurturing Skills aims to strengthen the ongoing process of professionalisation for those working in the sector.

One of the five "pillars" of Nurturing Skills 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.

In December 2023, a Sub-Group of the Early Learning and Childcare Stakeholder Forum was established to address recruitment and retention challenges. The group has advanced initiatives including:

• A Student Fast-track Process for recognition of studies to work in service out of term,

• The assessment of unfinished qualifications, where people who may have started a relevant qualification but did not get to finish it, can have what they completed assessed for meeting qualification requirements,

• An agreement to promote careers in the sector.

To further support staff retention and increase the number of degree level graduates in the sector, the Nurturing Skills Learner Fund was established and enables educators who continue to work within the sector to pursue Level 7 and 8 qualifications by funding up to 90% of their tuition costs. Over 700 staff are now supported through the Nurturing Stills Learner Fund.

Shaping the Future, the Early Years Action Plan, Phase 1 Report sets out the next steps for building an affordable, high-quality, accessible early learning and childcare system, informed by stakeholder consultation. The Action Plan adopts a phased approach that allows for actions in 2026 to improve affordability, accessibility and quality, while also ensuring adequate time for a broad public consultation on longer term actions. A central objective of Shaping the Future is to reduce parental fees to an upper limit of €200 per month over the lifetime of the Government.

Before Phase 2 actions can be specified, in line with the Programme for Government commitment a broad public consultation is under way. Multiple consultation channels have been used including a national online survey with over 11,000 responses and a telephone survey of approximately 600 parents with children aged under 15. In addition, 56 local consultation events were held between 20–30 April organised with the City and County Childcare Committees. There has been continued ongoing engagement through the Early Learning and Childcare Stakeholder Forum throughout the consultation process. A national forum, later this year, will build on insights from surveys, events, and stakeholder engagement. Additional data-gathering and analysis is also being undertaken to inform Phase 2.

General data assumptions

Cost estimates are based on the data available to the Department, provided by service providers in receipt of Core Funding. The data was pulled on 6th May 2026.

A 21% employer cost has been included in the calculations (to cover PRSI, Holiday pay, Sick Pay and Auto Enrolment Pension contributions).

The cost estimates only relate to staff and managers covered by the current Employment Regulation Orders, i.e. the estimates exclude the cost of ancillary staff.

Core Funding data was extrapolated to represent the entire sector at factor of 1/0.88.

Staff whose recorded annual hours exceeded the valid threshold were assigned the mean annual hours calculated from the valid population.

Staff whose rate of pay is entered below the latest ERO in the data pull are assigned a rate equal to the latest ERO.