Families with young children need more affordable, accessible early learning to deal with higher interest rates, rising rents.
The Reserve Bank of Australia (RBA) has today raised interest rates by 25 basis points to 4.35%, placing additional pressure on many families with young children.
Although the Child Care Subsidy increase implemented mid-year has helped ease some of the financial burden, the recent ACCC report found, in the absence of holistic system reform and proper workforce measures for early childhood educators, early learning fees will keep rising.
The majority of Australian parents with children under six are struggling with living expenses and the high cost of early childhood education and care are adding to financial struggles, according to a new national poll conducted for The Parenthood by Essential Research .
Jessica Rudd, interim CEO of The Parenthood said, “The rate rise announced today brings many Australian families with young children to the brink if they are not better supported through the ongoing cost of living crisis.
“While the pressures of this rate rise decision will be felt by many, the majority of families with young children (62%) were already struggling financially and will face further strain on household budgets.
“The increase of the Child Care Subsidy earlier this year was welcome, however it does not go far enough and in some cases has been swallowed up by fee increases. Universally accessible, affordable and quality early childhood education and care is a vital way of providing cost of living relief that’s effective and non-inflationary.
"Supporting families in this critical time will not only ensure their wellbeing and prosperity but will also help parents of young children have better choices about workforce participation and secure a brighter future for Australia’s children.
“We urge the Federal Government to implement the measures necessary to make early learning more affordable for all families, at a time of high economic uncertainty,” she said.