Childcare centres struggle as no fee deal increases demand

Childcare centres are being forced to cut staff hours and turn away desperate essential-worker parents to cope with the government’s fee-free system.

OSCH worker Colleen Reilly with her three-year-old daughter Octavia. Picture: Matt Loxton

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Colleen Reilly loves spending time with three-year-old Octavia.

But now, the Plympton mum faces no choice but to keep her daughter home as her childcare centre is squeezed out by a rush of parents seeking free care.

Ms Reilly faces the same “heartbreaking” situation at her work, a before and after-school care centre.

Her centre is not alone, with childcare centres across the state being forced to turn away essential workers begging for extra care in response to the Federal Government’s new no-fee system.

“We were being asked by families in pretty desperate situations, and it was pretty heartbreaking to turn them away,” said Ms Reilly, who was also turning down shifts at her work because she could not find extra days for Octavia.

“Parents are having to make a decision between not having as much income that week or putting their kids in situations that aren’t necessarily safe.”

Childcare leaders say the Morrison Government’s offer of free childcare has increased demand and centres are struggling to cover their costs.

The Government announced free childcare for more than 62,000 SA families under a $1.6 billion injection to keep the economy going during COVID-19.

But parents and providers are crying out for more guidance from the Government as centres struggle to cater for more kids with less money.

Early Childhood Australia chief executive Samantha Page said she was aware of some SA centres turning children away.

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She said in the past, if centres took on extra children they would get more money. But under the Government’s new deal, which only guarantees half of a centre’s total income based on the last fortnight in February, Ms Page said owners were losing money by taking on more children.

“Now they work at what capacity they can offer at that level of income,” she said. Goodstart chief executive Julia Davis urged state and federal governments to consider improving access for vulnerable and disadvantaged children.

Federal Education Minister Dan Tehan said the relief package was under review to determine if “policy adjustments are required”.

“The Government’s Early Childhood Education and Care Relief Package was introduced because Australia’s childcare centres were experiencing mass withdrawals, which threatened their ability to provide care … particularly to the children of essential workers,” he said.

Labor early childhood education spokeswoman Amanda Rishworth said reports of parents having to turn down work because of a lack of childcare were “unacceptable”.