Cost of living for parents of young children soars by 27 per cent since 2021

Living expenses for parents of children under five have grown by 27 per cent since 2021, and the exorbitant cost of early learning and care is a major contributor, finds new research from Impact Economics and Policy. 

Tuesday 10 December

Living expenses for parents of children under five have grown by 27 per cent since 2021, and the exorbitant cost of early learning and care is a major contributor, finds new research from Impact Economics and Policy. 

The research comes just a month after childcare was named by the Consumer Price Index as the third fastest growing good or service cost in Australia, having increased by 10.7 per cent in the year to September. 

CEO of The Parenthood Georgie Dent said this makes clear why all political parties must commit to reform that makes early childhood education and care radically more affordable. 

“Very few Australians are immune from the cost-of-living crisis, but it’s clear that young families are bearing the brunt of the financial pain,” said Ms Dent. “Reducing the high cost of early learning and care would alleviate a huge pain point for families.”  

Prime Minister Anthony Albanese is considering a fixed-fee early learning and childcare model where fees are capped at $10 or $20 a day if re-elected in 2025, according to recent reports. 

“The impact on family budgets would be profound,” said Ms Dent. “There are many families in our community paying between $50-$100 a day, per child, for early education. 

“The estimated cost savings under a fixed fee of $10 a day would be life changing and enable families to more readily make ends meet. 

“Recent estimates found that a $10 a day model would enable an additional 134,000 mothers to return to work.

“Quality early childhood education is critical community infrastructure that benefits children, parents and the nation’s productivity.

“The cost-of-living benefits of a fixed-fee early learning model outweigh politics. We are urging all parties to commit to a fixed-fee early learning model ahead of the upcoming Federal Election,” said Ms Dent.