Budget 2025 Ask #2 - Work and Skills Development

Ireland's community and voluntary sector is a cornerstone of the country’s social infrastructure, providing vital services through both paid and voluntary workforces. However, the sector faces pressing challenges, including pay disparities, a recruitment and retention crisis, and the need for ongoing skills development. Addressing these issues in Budget 2025 is essential to ensuring the continued delivery of high-quality care services and the long-term sustainability of this critical sector.

Health and Social Care

The health and social care sector in Ireland plays a pivotal role in the nation's economy and society. It is not just a major employer but also a key contributor to public services, particularly through community, voluntary, and charitable organisations. These organisations, known as Section 39, 56, 10, and 40-funded entities, provide essential health and social care services. However, the sector faces significant challenges in terms of decent work, pay disparities, skills development, and funding gaps, which have exacerbated recruitment and retention issues.

Employment Landscape

Charitable organisations in Ireland employ approximately 281,250 staff, nearly 1 in 8 people in the workforce, while also relying on over 1 million volunteers. This highlights the sector's substantial contribution to public services, with one-third of public service workers employed by community, voluntary, or charitable groups. Despite the size of this workforce, many staff experience significant pay gaps, with salaries falling short by up to 17% compared to their public sector counterparts.

In October 2023, in an effort to prevent strike action, the Workplace Relations Commission (WRC) agreed to an 8% pay increase for staff in Section 39/56/10/40-funded organisations. This agreement sought to address some of the existing pay discrepancies. However, its implementation has been fraught with difficulties due to the complex funding arrangements of these organisations. Many frontline staff have yet to receive this pay increase, further intensifying the recruitment crisis within the sector.

Pay Parity and Funding Needs

To ensure fair compensation and attract skilled workers, it is essential that Budget 2025 provides a clear pathway to pay parity for staff in Section 39/56/10/40-funded organisations. Without equitable pay, the sector will continue to struggle with recruitment and retention issues, putting essential services at risk. Additionally, there is a need for increased funding to support both salary and non-salary costs, ensuring that organisations can continue to operate efficiently while delivering high-quality care.

The Importance of Skills Development

The sector relies on a highly skilled workforce to provide essential services. These workers, who have consistently demonstrated innovation and commitment, particularly during the COVID-19 pandemic, play a crucial role in addressing societal challenges. As Ireland faces shifting needs in areas such as healthcare, housing, and child welfare, ongoing skills development is essential to ensure that workers can meet these challenges.

To maintain and enhance the quality of care provided, Budget 2025 should include a commitment to invest €10 million annually in professional development, with a focus on health and social care. This investment would allow workers to stay current with evolving best practices, technological advancements, and shifting societal needs.

Addressing the Digital and Green Transitions

Over the next few years, Ireland’s workforce will need to adapt to significant structural changes driven by demographics, digitalisation, decarbonisation, and deglobalisation. These changes will require a concerted effort in reskilling and upskilling across all sectors, including health and social care. The OECD’s 2023 review of the National Skills Strategy highlights the pressing need for workforce investment, particularly as 30% of adults in Ireland have less-than-basic digital skills.

Budget 2025 should allocate €9 million to support the sector in responding to these transitions by funding research into the sector’s skills needs and developing targeted upskilling programs. This funding will be crucial in ensuring that workers can effectively navigate the twin digital and green transitions, ensuring that the health and social care sector remains resilient and capable of meeting future challenges.

Cornerstone of Social Infrastructure

Ireland's community and voluntary sector is a cornerstone of the country’s social infrastructure, providing vital services through both paid and voluntary workforces. However, the sector faces pressing challenges, including pay disparities, a recruitment and retention crisis, and the need for ongoing skills development. Addressing these issues in Budget 2025 is essential to ensuring the continued delivery of high-quality care services and the long-term sustainability of this critical sector. By investing in fair pay, professional development, and digitalisation, the government can help secure the future of this workforce and the services they provide.

The Wheel’s Pre-Budget 2025 submission is available HERE