Childcare centres threaten to slash numbers to stay afloat
The government’s free childcare plans will not be enough to save struggling centres which say they are still going to need to slash numbers to stay afloat.
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Childcare centres are threatening to slash the number of children they care for by more than half in order to stay afloat during the coronavirus pandemic.
On Thursday, the Morrison Government said it would temporarily replace the childcare subsidy with free childcare for parents who need it.
Under the scheme, childcare centres will receive payments directly from the Government on the condition they don’t charge parents any gap payment.
Centres will receive 50 per cent of their fee revenue before the pandemic struck. But some centres say the payment is not enough to remain open, claiming they will be forced to reduce hours and turn families away.
Samantha White, whose Woodside property was affected by the bushfires, has already been forced to shut her Hahndorf Come and Play cafe, which she only opened on December 13 last year.
She is now considering whether to shut her Woodside Come and Play home-based childcare centre as the changes will see her income plummet.
“Why would I keep working for 30 hours a week for $400?” she said.
“I’ve got a child in Year 8 and one in kindy who I will now be homeschooling, and would have the risk of other people regularly coming to my home if I keep the business open.”
Ms White said some families who used her service were reconsidering their positions due to job losses and a better option for her might be to take the JobKeeper package linked to her cafe rather than operating the childcare business.
Lachlan Walker, from Timber Tots Child Care in Brisbane, said he had had to reduce hours of staff and slash the number of children attending the centre.
He described the situation as “diabolical”.
“Families have offered to pay the gap but if the centre charges parents then we aren’t given the subsidy,” he said.
“We have had to limit our service to bare bones which flies in the face of what we believe in,” he said.
“Scott Morrison’s announcement takes us back to being babysitters.”
The Government said centres that lost money due to a reduction in fees would qualify for the Government’s JobKeeper payment, aimed at helping businesses that suffer a 30 per cent drop in turnover.
“The overwhelming majority of operators in the sector will be eligible to apply for the JobKeeper payment,” Education Minister Dan Tehan said.
Labor’s childcare spokeswoman Amanda Rishworth said that while she was pleased the Government had acted to secure income for childcare centres, the new model had “unintended consequences.”
“The Government must work with all providers to ensure that the arrangements put in place enable centres to keep their doors open, both during and after the current crisis,” Ms Rishworth said.
Mr Tehan encouraged centres with unique circumstances to contact the department but said it was up to everyone to “put the team first”.