2026-02-19

101. Deputy John Lahart asked the Minister for Children, Disability and Equality the measures being taken to address issues with employer costs of auto-enrolment for section 56 organisation employees; and if she will make a statement on the matter. [13075/26]

Deputy Aindrias Moynihan is taking Question No. 101.

Organisations funded by Tusla under section 56 of the Child and Family Agency Act are delivering a huge range of vital services, such as youth services, in communities around the country. Cloyne Diocesan Youth Services, CDYS, is a typical example in my own community. Can the Minister outline the efforts being made to address the costs associated with auto-enrolment for these organisations?

I appreciate the Deputy raising this important question. I deeply appreciate the work performed by section 56 organisations and I would like to thank their staff and volunteers for the commitment and support they are giving in improving people’s lives. The Department welcomes the auto-enrolment retirement savings scheme launched in January 2026. The auto-enrolment system provides that all employees earning in excess of €20,000 and aged between 23 and 60 will be enrolled onto a new pension system and will not have to rely on the State pension alone on retirement. As such, it is of considerable benefit to many employees in section 56 organisations. The auto-enrolment retirement savings authority will have responsibility for employer compliance, with Revenue providing support by supplying payroll data for identification and enrolment purposes. All employers are required to comply with the legislation underpinning MyFutureFund, regardless of their status or funding arrangements. This requirement applies equally to employers, including where employees are on short-term contracts or working multiple part-time jobs. MyFutureFund will be central to helping people increase their financial security in their retirement years. Agencies, organisations and charities that will be covered by the new auto-enrolment scheme are generally funded under section 56 of the Child and Family Agency Act 2013. These organisations receive a portion of their funding from Tusla to deliver services and generally have other income streams. Funding is provided to these organisations by Tusla through the grant process and the level of service provided is generally covered within the terms of a service level agreement. These organisations are independent entities and, as such, employment contracts and obligations - for example, auto-enrolment, pay, pensions and all of that - are matters between the employer and their employees. As these staff are not public sector employees, responsibility for meeting obligations under the new auto-enrolment scheme rests entirely with their respective employers.

These section 56 organisations, the likes of CDYS, are providing vital services such as social care services in the community, family support through the family resource centre and, in my own community, youth services and much more. While Tusla contracts them, as the Minister said, they are private organisations and their employees are not employed by Tusla. They are not-for-profit organisations delivering services in our community. While the aim of introducing the auto-enrolment is to fill that gap between people who do and do not have pensions, which is very welcome, it is an additional cost on these not-for-profit organisations. We need to review the situation here and I would ask that additional funding be made available to support those section 56 organisations. They are voluntary organisations that are not for profit and are delivering vital services in our communities.

I want to second and indeed third what the Deputy had to say there about these organisations. They are really important organisations doing sterling work right across our communities, north, south, east and west. The work they do, and the breadth of it, is quite phenomenal. They are very much rooted in community and service to the community. I do not for one minute dispute that but I have to be clear on the funding mechanism. Tusla provides funding to many of these organisations, some of which the Deputy has referenced. In many respects, Tusla is providing part of their funding. They are funded through other means as well. Essentially, the issue here is that all of these organisations the Deputy referenced are independent entities. Tusla is not the employer. The relationship is between the organisation and the employee, that is, as employer and employee. Tusla is not in that space and it is important that we have clarity around that.

I am conscious that pay increases were agreed with section 56 workers in the past year and funding increases were agreed for the organisation to support an increase in pay. Has the Minister considered introducing additional funding to the organisations as was previously done to support the organisations' additional employee costs, and will there be assistance for these important services that find themselves in difficulty due to the increased costs of employment? They are providing vital services, including youth services and a broad range of services in the community. While they are not direct employees of Tusla, Tusla does fund and contract them and it provides funding for employment. It is not totally removed from the situation and is a vital cog in it. It needs to re-examine the possibility of supporting these organisations, as they are coming under pressure from the increased cost of auto-enrolment.

I want to be clear. I do not for one minute disagree with the points the Deputy made about the valuable work of these organisations. They are an integral service to communities and I understand the importance of that. I have to be clear: in the delivery of that work they are funded by Tusla. They are not employed by Tusla. There is a separate relationship in existence there between the employer and the employee, or whatever type of contract is in existence there. These organisations are entirely independent entities responsible for the care of their own staff or whoever is delivering on their behalf. It is important that we recognise that. There are obligations in terms of auto-enrolment. It is very important. We are all agreed here on the importance of the auto-enrolment system but that must be catered for in the context of an employer-employee relationship. Tusla is not the employer. In regard to the broader funding being provided by Tusla, there has been a significant increase in funding by my Department to Tusla to increase the provision of services which, again, supports these organisations. That is the type of relationship that exists.