The latest fee increase from one of Australia’s largest for-profit childcare providers G8 highlights the need for the Federal Government to enforce measures that protect parents from the unpredictable cost of early learning.
The fifth consecutive fee increase at G8 since January 2022 means that fees have increased by 23.8% in just over two years.
Georgie Dent from The Parenthood said these fee hikes are unsustainable and force families, especially mothers, to choose between saving money or progressing their careers and sending their children to early education.
“A 23.8% fee increase over two years is absurd, and considerably outpaces inflation,” Ms Dent said. “It creates a perverse cost-of-working crisis where families literally cannot afford to work.
“This fee increase will undoubtedly add fuel to the fire, and place additional pressure on household budgets.”
The fee hikes come off the back of new government data revealing that the gender pay gap continues to restrict women’s earning potential. "The pay gap reflects a range of factors and the latest data has prompted conversations among business leaders about women “choosing” to work less due to family responsibilities. No "choice" is made in a vacuum. The context in which women in Australia "choose" how to combine work and care is still dictated by policies and practices that entrench 'mum as caregiver' and 'dad as breadwinner'.
“That informs our culture which remains firmly wedded to stereotypical roles for men and women, in ways other countries have shifted.
“Changing the policy context and creating an eco-system where parents can freely - and truly - "choose" what works for their families is on both government and employers.
“Totally affordable and universal quality early childhood education and care is a key policy lever that enables women to truly choose how much they work. In Australia, child caring responsibilities are the largest barrier to employment and realising their earning potential.
“Parents tell us how unaffordable childcare is, and that the subsidy system and Activity Test can lead to them actually losing money for working more hours. Our national poll in October of 1200 parents showed that 61% would work more if early education was more affordable. We need measures that enable parents to make the choices they want to make regarding their careers and their children’s early learning and development.”
Last year the Federal Government fulfilled an election promise to increase childcare subsidies, but some providers increased their fees, meaning the benefit did not flow to the families who need it most.
Dent said more affordable and accessible early learning and care, and support from both the government and employers for both parents to earn and care for their children, would provide a safety net for families against the unpredictability of the cost of childcare and current cost-of-living crisis.
“All parents should feel that sending their child to early learning is doable, if that’s what they want. Simplifying the complex subsidy system and making quality early learning and care more affordable and accessible would increase national productivity and ensure more children right across the country and income-divide can access the profound developmental benefits of early childhood education and care before school.
“Not only that, more parents could get back to work and contribute to their household earnings, reducing just one of the many systemic barriers faced by too many families in entrenched cycles of disadvantage,” Dent said.
