Australia’s long day child care providers today warned that the Senate’s passing of budget cuts to the 50% Child Care Rebate (CCR) cap will hurt all full time working mothers and will price many families out of quality early learning programs altogether.
The Australian Childcare Alliance representing 70% of the long day child care sector and the staff who care for more than 400,000 young children, said this was a terrible blow to parents at a time of decreasing consumer confidence, increasing interest rates, pressure on household budgets and against the backdrop of global economic uncertainty.
President of the Alliance, Ms Gwynn Bridge says parents have every right to be upset and angry at this latest attack on their hip pocket by the Government. The cutting of the CCR cap from more than $8,000 to $7,500 and then freezing indexation for four years is more than many families can bear. These cuts mean $679 in the first year would be lost to families struggling with the rising cost of living. By 2014/15 – parents will miss out on $1438 in support. Any parent with a child in long day child care four to five days a week would be hit the hardest.
The first year cut is the equivalent to an interest rate hike of 0.28% on an average home loan. For example: a $300,000 house loan over 25 years @ 7.8% the increase to the family if interest rates went up by 0.28% is $666.00 and 0.29% is $690.00 per annum – this is similar to the impact of the first year Child Care Rebate cut without looking further ahead as the four year freeze on indexation kicks in.
Ms Bridge challenges Government claims today that it had an electoral mandate for this cut.
“There has never been any consultation on this issue with the families or the sector by the Government. Even if the Government paid the scantest of attention to the concerns of parents, they would never have pushed this Bill and the Greens would never have allowed it to be passed,” she says.
“Families cannot cope with this continual erosion of financial support from Government. They are already facing significant cost increases of $13-$22 a day per child from 1 January 2012 as a result of the Government’s well intentioned but ill-considered national reform agenda,” Ms Bridge says.
This Bill puts more pressure than ever on the Federal Government and the states (via the COAG agreement) to not even consider the reforms for at least two years until they can be paid for by the Governments and not parents. With less than five months to go before the reforms are due to start, neither parents nor centre providers have been informed of the final regulatory changes. Ms Bridge says this is causing undue stress and fear.
Ms Bridge says the Government should listen to the concerns of the struggling families who say they are already being forced to choose between quitting their jobs and placing their children in unsafe and unregulated back yard care.
“Families feel bitterly let down by the Government. But we hope that now, the Government will finally give them a break and ensure they are not hit with further increased costs to quality long day child care as a result of their rushed reforms.” ENDS
Media inquiries:
Ms Bridge, who is also the CEO of Childcare QLD, can be contacted today on: 0418 764 779.
