Commission report finds pay is not main factor affecting public sector recruitment

It has found there are a "number of factors" which are impacting retention and recruitment and that increasing pay may not be effective in attracting more staff.

The Finance Minister said: "It's crystal clear, we made an agreement over a three-year period that has wage growth and is in line with what is happening in the economy and is targeted on low- and middle-income earners within our public service.

"This is why we put in place this process to look at a particular sector, because we recognise that the labour market for those who work in our health service is, for example, different to the labour market for those who might provide IT services to government departments."

Trade union Siptu has called for a radical new approach to childcare funding to address the affordability and staffing crisis in the sector.

It comes after a report was published today by the Economic and Social Research Institute (ESRI) and the state agency, Pobal, on childcare costs.

Siptu's Darragh O’Connor said: “The ESRI report clearly details the depth of the affordability crisis. Women, particularly those from lower income households are being shut out of the workforce.

"However, we also have a staffing crisis with low wages driving qualified professionals from the sector.

"According to the report, the average rate of pay for a qualified early years education is just €10.88 per hour."

"Thousands are also on precarious 15-hour, 38-week contracts.

The trade union said the Government's increased subsidies "will not guarantee a reduction in fees for parents".

Mr O’Connor said: "We need a radical new approach to childcare funding in order to reduce parental fees and increase quality."