New laws - childcare fees rise

WORKING parents are facing a hefty rise in childcare fees of up to $200 a week because of a radical overhaul of childcare laws being introduced in NSW.

Not happy ... Corrine Cassar with her three children Paige 4, Zander 2 and Taylor 7 months. Photo: Cameron Richardson

WORKING parents are facing a hefty rise in childcare fees of up to $200 a week because of a radical overhaul of childcare in NSW.

Childcare centres are preparing for regulations which require one carer for every four children. Current regulations require one carer for every five children aged under two.

The lower ratio is aimed at improving the quality of childcare but a Daily Telegraph survey has found parents will be the hardest hit.

In a Daily Telegraph phone survey of 158 child care centres throughout metropolitan Sydney and across the state, operators were asked whether they planned to increase fees as a result of the 1:4 ratio and if they would meet the new regulation by reducing the number of places offered for babies or by hiring more staff.

The survey found 42 per cent of centres in metropolitan Sydney and 79 per cent of centres in regional NSW would raise their fees this year by between $1 and $40 a day, with the average fee increase adding up to $30 a week to childcare costs.

Thirty-four per cent of centres had not yet decided on a price increase. The changes are being rolled out by the State Government to fit new federal standards but private childcare operators said the changes will make childcare unaffordable and result in fewer places for newborns and younger children.

Families will be forced to pay the equivalent of two interest-rate rises a month for full-time child care.

And nearly 20 per cent of operators plan to reduce the number of childcare positions available to comply with the new regulations.

Federal Early Childhood Minister Kate Ellis said Government estimates were for "moderate" increases to parent costs.

Government consultants found out-of-pocket costs for a family on $80,000 with one child in care would be $8.67 a week by 2015.

Childcare NSW president Lyn Connolly said the costs will be much greater and called on the Government to cover the cost difference, or drop the reforms.

"We support the changes in principle. However, our major concerns are the proper cost-benefit analyses have not been done at centre level," she said.

"They have not proven there is a net benefit for families."

She said a large number of children will miss out on crucial early learning programs as families find childcare too expensive or tough to get into.

Childcare NSW, the peak group for private operators, commissioned research that found parents of babies face extra fees of up to $40 a day - if the full cost is not subsidised by children in other age groups.

"As a smart country we should be ensuring all young children have access to early learning programs," Ms Connolly said.

"That's not going to happen if the fees go through the roof."

Leichhardt's Rose Cottage Child Care Centre licensee Mark Churcher said formal care will become out of reach of normal families.

"What is going to change is it is going to make it elitist," he said.

Additional reporting: Danielle Bevins and Sarah Royall