Scrapping ‘free childcare’ may force centres to shut across Australia

The scrapping of free childcare will put a majority of centres at risk of closing, as the government has said its package is under review.

Jacquie and David Wolf from Kingsford with their kids Eitan, Tahlia, 4, and Noah, 1. David Wolf says the childcare policy through the COVID-19 crisis has left services out of pocket and families needing care. Picture: David Swift

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The scrapping of free childcare will put a majority of centres at risk of closing according to leading Australian parents advocacy organisation The Parenthood who are urgently calling on the Government to halt plans.

“Cutting this relief three months early will put up to 86 percent of centres at risk of closing,” Campaign Director Georgie Dent said.

“Returning to full fees will jeopardise many Australian children from being able to access the education and care they need, as well as make it more difficult for parents to return to work and adjust to the “new normal”.

Comments from the Prime Minister and the Education Minister Dan Tehan have indicated the government intends to wind back free childcare on June 28th have prompted concerns from the sector.

However, News Corp Australia has reported that many childcares say the rescue package has left them with half the income and there is increasing pressure to provide positions as parents return to work.

Jacquie and David Wolf from Kingsford pictured with their children Eitan, Tahlia, 4, and Noah, 1. Picture: David Swift

Early Childhood Australia (ECA) CEO Samantha Page has said the sector needs a support package that protects both children and educators and said services are struggling to cover ongoing costs on the current package.

A Government report into the ‘free childcare’ package has found that while it helped many childcare centres stay open and remain financially viable, it will require review as the demand for early childhood services is predicted to quickly increase.

The report found many childcare workers were ineligible for JobKeeper and some services were operating at a loss, in some cases because JobKeeper had not yet flowed through or because running costs were too high.

News Corp Australia reported that childcares across Australia were forced to fundraise with many parents saying they would be happy to consider paying for childcare.

But the report has rejected a mechanism for parents to make a contribution, saying “this could lead to scenarios where services preference paying families at the expense of those not providing a voluntary contribution, putting vulnerable children particularly at risk.

“Parents may feel pressured because they need the care, even if they cannot afford it.”

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Education Minister Dan Tehan said the emergency response had been widely successful with 99 per cent of around 13,400 services operational.

“Our government designed and implemented an emergency, temporary Early Childhood Education and Care Relief Package to ensure as many child care businesses as possible survived the COVID-19 pandemic while continuing to provide care to our children,” he said.

“The four-week review into the package makes clear that we need to begin planning for increased demand for places as businesses re-open and more people return to work.

“The review suggests a need to consider how the relief package can support economic recovery, supporting parents to get back to work and study, and children’s early childhood education and wellbeing.

“The Government will consider the review.”

Opposition spokeswoman Amanda Rishworth said the report also showed one in four surveyed providers did not believe the current arrangements have helped them to remain financially viable.

“I do not think that is a number worth celebrating,” she said.

“The Government’s poorly designed and underfunded “free child care” policy has left many families without access to child care, providers struggling to stay afloat and early educators without jobs.”

“With the report indicating attendance is at 63 per cent of pre-crisis levels, it is clear snapping back to the old system could create further headaches for providers and families. The Morrison Government now has the opportunity to chart a new course when it comes to early education in Australia that meets demand, keeps the sector viable and ensures early learning is affordable and accessible for all families.”

Originally published as Scrapping ‘free childcare’ may force centres to shut across Australia