Council dumps Shoalhaven Family Daycare in desperate bid to save funds
A South Coast council attempting to toddle away from the brink of financial ruin have angered parents after slashing an affordable daycare service.
The South Coast News
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A South Coast council attempting to toddle its way out of a dire financial disaster has officially abandoned its affordable child care scheme – to the dismay of many parents – in a desperate bid to turn their monetary tides.
Shoalhaven Council voted on Tuesday to stop financially backing Shoalhaven Family Day Care, after the local government body found it could save $90,000 a year.
The family daycare service has provided affordable child care options to Shoalhaven parents for 40 years, according to council’s website.
The controversial move to ditch the service follows a 2023 independent economics group review, declaring the coastal council financially unsustainable, warning of multimillion-dollar losses and possible administration.
The child care service is now forced to find a third party operator, potentially driving up prices, despite government-led childcare subsidies available.
A Shoalhaven Council spokeswoman said the local government body hoped a not-for-profit would take over to keep costs low, but admitted a private operator could step in, likely increasing prices.
“We don’t want to go down that road,” Shoalhaven mayor Patricia White said.
Mother Lauren Taylor, whose son attends the service, told this publication the news came “out of the blue”.
“There has to be budget cuts and they have to pull money from somewhere, but for me as a mum, child care seems like a very strange place to start,” she said.
Ms Taylor said her son’s educator was “very up front” with all parents once the news broke, and warned price increases were possible.
“I used to live in Sydney and daycare was a lot more expensive there,” she said.
“It’s a real shame that this is happening to a service that a lot of people rely on.”
Shoalhaven Family Day Care educator, Samantha Earle, said she believed the decision was made “a long time ago”.
“[Council] could have adjusted things,” she said.
“There are other ways to try and save money.”
Shoalhaven United Services Union slammed the decision.
“The privatisation is also expected to result in increased costs for parents,” a spokesman said.
However, Ms White defended the “hard decision”, noting council lost a staggering $30m last year.
“We have to become sustainable. We have to find that money,” she said.
The United Services Union Shoalhaven spokesman said council wiping their hands clean of the service to save $90,000 per year was not the answer.
“Council failed to apply for available federal grants in 2024 that could have supported the service’s continuation,” he said.
Shoalhaven Council confirmed the move would take effect immediately.
“During the last five years, the service has gone from making a profit, to returning a loss each year of between $68,000 to $96,000,” the council spokeswoman said.
She revealed discussions between affected educators and potential providers had commenced.
Despite criticism, Ms White stood firm.
“We have to make difficult decisions to help improve council’s finances,” she said.
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