Prepare to pay more for childcare, industry experts warn

Mums and dads must prepare for price hikes as childcare centres face rising wages and other costs, experts have warned.

Childcare fees are already increasing by between four and eight per cent with one industry expert warning that every single childcare service in the state will increase fees in the next six months and they face rapidly rising costs.

Australian Childcare Alliance NSW chief executive Chiang Lim said combination of the lack workers, a Fair Work Commission decision to increase the minimum wage and inflation meant centres would have no option but to hike prices.

“It is virtually impossible for any service to maintain fee levels that are equivalent to precovid, given the circumstances that are facing all services now,” Mr Chiang said.

“It is unfortunate that we are looking at a perfect storm scenario — post Covid, where fees have not gone up for two years but are now expected to CPI increases, Fair Work Commission wage increases, and also a severe labour shortage.

“Nobody was putting up fees during Covid, and now with wage increases, CPI increases, everything is going up, mortgage increases, commercial loan increases, material cost increases, comprehensive wage increases not just for our own staff, but in the supply chain that supports our services.”

Parents are being told to brace for higher childcare fees as the cost of living and minimum wag both spike. Picture: Andrea Obzerova

“There is talk at the moment by the new federal Labor government to bring subsidy increases forward by a year, that can help, and there is talk across government, about what are the things we can achieve flexibility to improve costs.”

Childcare comparison website, Care for Kids, found the price of childcare varies as much as $60 and $250.

Care for Kids CEO Ash Sachdev. Picture: Supplied

Chief executive Ash Sachdev said his advice to parents was to shop around.

“The key message for parents is there is a lot of choice and options,” he said.

“There is availability and vacancy across the board, there are centres where there are waitlists … and $10 a day is a big saving across an entire year.”

Chief executive of another comparison website Kindicare, Benjamin Balk, said prices would go up.

“Childcare providers aren’t immune to inflation, and as a result, we’re seeing childcare fees increase across New South Wales at between 4 per cent and 8 per cent as child care providers face increasing operating costs,” he said.