I acknowledge that many early learning and childcare services report recruitment and retention challenges. In general, these challenges are not caused by insufficient supply of staff, but by high levels of turnover. Data from the sector profile survey shows a turnover rate of 24.5% in 2023, with almost one third of the turnover rate due to staff moving from one provider to another. I note that new data on the number of educators or practitioners working in the sector increased by 10% between 2023 and 2024. Turnover is linked to pay and working conditions. However, while the Government is the primary funder of the sector, the State is not an employer of staff. Neither I nor my Department set pay or working conditions. The joint labour committee process is the mechanism by which employer and employee representatives can negotiate minimum pay rates, which are set down in law through employment regulation orders. Outcomes from the joint labour committee process are supported by the Government through core funding, which has seen its allocation increase from €259 million in year 1 to €350 million for the coming year 2025 to 2026. An additional €45 million has been ring-fenced to support employers in meeting the costs of further increases to the minimum rates of pay. This allocation is conditional on updated employment regulation orders. I recently met joint labour committee representatives - in fact, I met them again today - to acknowledge their important role and to emphasise the Government’s expectation that any newly negotiated orders fully utilise the ring-fenced the funding available. My officials also continue to discuss issues of recruitment and retention with stakeholders through a subgroup of the early learning and childcare stakeholder forum. While the general consensus of the group is that pay is the single biggest issue, the group continues to identify other actions, including: a student fast-track process; the assessment of unfinished qualifications; and an agreement to promote careers in the sector.

Sentiment score: 0.13

There is agreement across the House that money ring-fenced for staff should go to staff. I acknowledge that has been Deputy Kerrane’s personal view from the beginning. I met joint labour committee representatives today and I have met them previously. While they are entirely independent of me, it is important I take every opportunity, as the Deputy has, to articulate that money on the table is specifically ring-fenced for staff. It should go directly to them. While I referenced it briefly earlier, I wish to mention that although pay is a key component, other important issues were identified by the group as well. For example, the student fast-track process was an important issue for the group where students who have reached a particular level, such as level 5, could be acknowledged for that and work as they moved to levels 7 and 8.

Sentiment score: 0.28

I will absolutely know a lot when this process concludes. I have always been clear that there are two elements to this, namely, the providers and the employees. One cannot work without the other. They must work together in the best interests of the children we serve. The mechanism we have currently, as the Deputy has outlined, is the joint labour committee. We have all made our views clear as to how we would like to see that process work, while respecting the independence of the committee. I will be in a better position to judge everything once all of this process is concluded. I want the best possible outcome. I have been clear in that regard. I hope that will be delivered. Our core aim is to ensure that we have viable costs for parents and a sufficiency of places and that staff who work in the sector are suitably recompensed.

Sentiment score: 0.39

I thank the Deputy. Earlier this month, I announced the introduction of maximum fee caps for all partner services in core funding from September 2025. The fee freeze will remain in place for all partner services with fees below these caps. This is an important step towards the reduction of childcare fees to €200 per month over the lifetime of this Government. Maximum fee caps were introduced for new services last year, and this September they will be extended to existing services. Under the new fee caps, the highest possible fees will be no more than €295 per week for a full day of 40 to 50 hours per week. Once the national childcare scheme subsidy is taken into account, the maximum fee for a parent in this situation will be less than €200 per week. This latest measure builds on a range of supports already in place. The early childhood care and education, ECCE, programme provides two years of preschool without charge and has participation rates of 96%. The national childcare scheme complements ECCE, giving universal and targeted subsidies to reduce costs to parents. Recent improvements include the extension of the universal subsidy to children under 15 and two increases to the minimum hourly subsidy, now worth €96.30 per week for 45 hours. Almost 220,000 children benefited from a subsidy in 2024. Since last September, children in childminding settings can also benefit from national childcare scheme subsidies. In addition, the fee management system introduced through core funding has made sure the investment in affordability is not absorbed by unnecessary fee increases. Core funding has enjoyed high participation rates to date, with 92% of services taking part. Preparations for the first Estimates process for this Government are under way and I am committed to bringing forward proposals to make further progress in this area. Work is also under way to develop an action plan to build an affordable, high-quality and accessible early learning and childcare system, informed by stakeholder consultation. This will set out future steps to reduce the cost of childcare further to €200 per month.

Sentiment score: 0.22

I want to be clear. This is a commitment over the lifetime of the Government. The more quickly we take steps the better, and the more quickly we will be able to deliver. In the fewer than five months during which the Government has been in office, we have taken the first very significant step regarding fee caps. We should not underestimate the significance of fee caps. Families who, prior to this, were paying €325 saw a reduction to €295, and with the subsidy they are now paying less than €200 per week. That is an example of the trajectory we wish to follow. I also acknowledge that, while we were doing that for the significant number of people paying very high fees, the fee freeze remains in place for the others. There are a number of different streams. The objective is to ensure the costs for parents are affordable, there are sufficient places and staff in the sector are being remunerated appropriately.

Sentiment score: 0.27

I have always been very clear that this is like a triangle. There is no point in reducing fees if there are no places for children to attend, and there is no point in having children available and reduced fees if we do not have staff who will work in the sector. There are three elements to this. On having sufficient places, I want to be clear. Sufficient funding has been provided by Government in terms of core funding. There has been an unprecedented level of investment by Government. There has been a net increase of 226 providers moving into this area. Notwithstanding that, we have to continue working in the area. The Government recently announced the building blocks scheme, which will provide an additional 1,500 places. Equally, there is a commitment from Government, through the forward planning unit, that where there is a lack of capacity being delivered in certain areas, we will move forward with a public model where that might be necessary.

Sentiment score: 0.09

Obviously it is a core objective of the Government that we would maximise the number of providers in place. To do this we are lending support to private providers through schemes such as building blocks. We have also said we will step in where there is an absence of providers in an area. We are doing work on how this public model would look and what it would look like. Issues have been raised about the commitment in the planning guidelines to have places available for populations of 75 houses. Childcare facilities have been built which are not being used as childcare facilities. I am working with the Minister for housing to ensure there will be updated guidelines for planning in this respect. If a facility is built it needs to be used for the purpose for which it was built, in this instance for the provision of childcare. Significant work has been done to support smaller providers. Previously the lower base of funding they had was a guaranteed €8,500. The base income that is guaranteed has increased to €14,400. Quite a body of work is under way.

Sentiment score: 0.19