Families face fee hikes unless government urgently funds educator retention payment

Australian families could be hit with higher early childhood education and care fees from August unless the federal government urgently commits to funding the Worker Retention Payment, The Parenthood has warned.

In a letter to Prime Minister Anthony Albanese, Treasurer Jim Chalmers, Finance and Women’s Minister Katy Gallagher, Education Minister Jason Clare and Early Childhood Education Minister Jess Walsh, The Parenthood has called for urgent certainty for families, educators and providers.

The Parenthood CEO Georgie Dent said the government’s silence on the future of the payment in the Federal Budget had left families facing an unacceptable risk of higher fees or the loss of experienced educators.

“Families are already under enormous financial pressure. Early childhood education and care is often the second biggest cost families face after housing, and parents simply cannot absorb another fee shock,” Ms Dent said.

“If the Worker Retention Payment is not funded, providers will be left with two bad options: pass the cost onto parents through higher fees or lose experienced educators from the sector.

“Either way, children and families pay the price.”

The Worker Retention Payment has helped keep experienced educators in the sector over the past two years, supporting stable relationships between educators, children and families.

Fees have risen by 11 per cent in the past year alone, three times the rate of inflation, while two in five families are already paying out-of-pocket costs beyond the hourly rate cap.

Ms Dent said the issue demanded an urgent response before the current cap expires in August.

“Early childhood education is essential infrastructure for families, children, communities and the economy,” Ms Dent said.

“Families need certainty that quality care will remain affordable, accessible and delivered by a stable, supported workforce.

“The government must fund the Worker Retention Payment now, and with certainty, so educators, families and providers can plan ahead.

“Excessive fee increases during a cost-of-living crisis are not a viable option.”

The Parenthood is calling on the federal government to:

• Fund the Worker Retention Payment now, and with certainty, so educators, families and providers can plan ahead.
• Stop costs from being passed to parents, with no excessive fee increases during a cost-of-living crisis.
• Extend Paid Parental Leave to 12 months, recognising the first year of a child’s life is foundational for families and easing pressure on the early childhood education and care workforce.
• Deliver long-term structural reform of childcare affordability, so no family is priced out of early learning.

Ms Dent said the issue mattered deeply to the more than 85,000 parents and carers in The Parenthood’s community.

“We will continue engaging with families across Australia about the pressures they are facing and the importance of ensuring early childhood education and care remains affordable, high-quality and accessible,” Ms Dent said.

The Parenthood is Australia’s leading parent advocacy organisation, representing families nationwide and working to make early childhood education and care safer, more affordable and accessible for every child.