Families need more help to cope with soaring interest rates

The Reserve Bank of Australia (RBA) has today raised interest rates for the twelfth time in just over a year, bringing the official cash rate to 4.1%, and placing additional pressure on many families with young children.

Families with young children need more affordable, accessible early learning to help cope with soaring interest rates

The Reserve Bank of Australia (RBA) has raised interest rates for the twelfth time in just over a year, bringing the official cash rate to 4.1%, and placing additional pressure on many families with young children.

Although the childcare subsidy is set to rise on July 1, the assistance has been eroded by rising costs of living, including interest rates, while other families are missing out altogether on assistance.

Low-income families, single parents, First Nations families and parents who are shift workers are among the most impacted by the Activity Test for child care subsidy, according to a recent Impact Economics report.

Chief Executive Officer of The Parenthood, Georgie Dent said, “The RBA’s decision will increase financial difficulties for many families across Australia who are already struggling with the surging costs of living.

“And while the pressures of this rate rise decision will be felt by many, families with young children, who have experienced childcare costs skyrocket over the past year, will have further strain on household budgets.

“Without bold and urgent support from the Government, these families will often be forced to make incredibly unfair choices, with young children potentially having to miss out on the many benefits of high-quality early learning and care.

“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 secure the future of Australia’s children.

“Measures such as the rolling out of universal three year old preschool across all Australian states and territories and abolishing the child care subsidy Activity Test, will not only allow greater access to high quality early childhood education and care for young children, they also significantly alleviate financial pressures for families in need.

“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.