Low salaries in childcare sector leads to poor staffing levels, says providers

Providers of childcare services believe that low salaries in the sector impact on the ability to attract and retain qualified staff, and contribute to low morale.

They also believe there is a general sense that the work of the sector is not fully valued, according to a report just published.

The report, published on Monday by the Department of Children and Youth Affairs, assessed the average “unit cost” of providing early learning, and school age childcare, at €4.14 per hour.

The report said that the average unit cost was closely aligned with data found in other jurisdictions, with a recent study in Scotland finding an equivalent cost of €4.20.

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Minister for Children and Youth Affairs, Roderic O’Gorman, said the report provided a rich and detailed understanding of the childcare market and a sound basis that could inform future funding decisions.

“While the findings on unit cost give us some confidence in our current levels of State subvention, I am acutely aware that the unit cost is based on pay rates in the sector that are unacceptably low,” he said.

The report was drafted for the department by Crowe, in association with Apteligen, and included a survey that resulted in 573 responses that reflected the overall profile of the sector.

The study found that unit costs in rural areas tended to be lower than in urban ones, and that larger providers benefitted from economies of scale.

Staff costs

However rural providers also said low population numbers and operating in lower income areas, were challenges they faced.

Two-thirds of the respondents operated out of one or two rooms, and just under a quarter had more than three rooms available.

The majority of respondents (83 per cent) said the capacity to offer attractive wages was a key concern, though 59 per cent said they had not had any staff leave over the previous twelve months.

Staff costs were found to constitute 69 per cent of all costs, with premises accounting for eight per cent, the survey found. Insurance was found to be one per cent.

The part-time nature of the work, including the fact that some providers closed for the summer months, was also an issue in terms of attracting qualified staff.

“A common frustration expressed by a number of providers was the perceived complex level of administration required to operate in the sector and comply with regulations; this administrative workload was reported as onerous and time-consuming,” the report said.