‘Perfect storm’: Daycare centres hike fees with more pain tipped soon

Most Queensland daycare centres have hiked prices by up to 8 per cent in some cases, but an expert says they aren’t trying to rip parents off.

Queensland parents already feeling the pinch amid the cost-of-living crisis have been slugged with extra day­care fees, with some centres hiking prices by as much as 8 per cent.

And industry experts warn that there could be further ­increases announced in coming months.

A number of childcare providers has increased daily fees for parents to match Brisbane’s rising CPI of 6 per cent in 12 months.

Goodstart Early Learning Centre was one of the many organisations that has had to increase fees by up to 5 per cent because of rising costs, with a spokeswoman attributing the rise to the Covid-19 pandemic, flu and lack of attendance, which have contributed to a revenue shortfall.

“As a not-for-profit provider, we have worked hard to keep the increase back in March to a minimum, well below the average increase for the early learning sector,” the spokeswoman said.

KindiCare chief executive Benjamin Balk. Picture: Supplied

“The fee change is helping to ensure our teams have the necessary resources and support to keep everyone safe, while we continue to absorb the cost of absences and waived gap fees for families when we need to close rooms or entire centres.”

Some childcares explained the fee increases in letters sent to parents that cited the minimum wage increase and the increasing cost of fresh ingredients used for meals and snacks prepared in-house, as well as the rising cost of staples including nappies and wipes.

Most national providers have also recently raised their fees anywhere from 4 to 8 per cent, according to Benjamin Balk, chief executive of daycare centre comparison site Kindicare, with the potential for more to come.

“Parents should be prepared that as inflation continues to rise; there are a couple of providers who’ve increased in January and February that will do another hike in July or August to keep up with rising costs,” he said.

Mr Balk said there had been a number of reasons behind the rising costs, including matching prices to account for increased rent, lost workers and a delayed start to enrolments due to a number of Omicron waves.

“It’s been the hardest financial year that early-learning providers have faced in the last decade,” he said.

Kindicare chief executive Benjamin Balk with wife Julini Halim-Balk and children Amelia, 5, and Annelise, 3. Picture: Kristy Jauncey Photography

“Most providers aren’t trying to rip parents off with these increases; they’re trying to continue to operate without being adversely impacted.”

Labour shortfalls have also affected the industry, with childcare centres requiring a specific ratio of workers to kids, meaning occupancy rates might be running at 60 per cent without enough staff or students.

This left centres operating at a loss, Mr Balk said.

“It’s also the industry struggling to retain its workforce and get new people in … it’s just become the perfect storm, unfortunately,” he said.

But there were a range of “sensible questions” parents were able to ask childcare centres to make sure they were still getting the best value for money.

“They should look at the hours they charge, if they need just eight hours instead of 10,” Mr Balk said.

“Some providers don’t charge public holidays as well.

“It’s also important to check your provider is increasing fees compared to others provided in the area.”