United Voice News
Evidence mounts for overhaul of childcare funding and planning
It’s time to overhaul the childcare funding system says LHMU the childcare union.
“There is a growing body of evidence that Australia’s childcare funding system is deeply flawed and is failing to meet community needs,” says Sue Lines, LHMU Assistant National Secretary.
“The State of Childcare in Australia Report and the Child Care Vacancies Quarterly Snapshot, both released this week, add to this evidence, although they seem to raise more questions than they answer.
“Australia needs quality early education and care that’s affordable and that’s where family need it. The key to achieving that is the funding model.
“Families and childcare professionals are paying the price for an inflationary and inequitable funding system that’s long past its use by date.
“Although government funding is increasing in total terms, the increases have only a short term impact on affordability: the inherently inflationary nature of the system means affordability for parents declines over time and requires constant government tinkering and top ups.
“The system also scores a resounding fail when it comes to providing fair pay and working conditions for the professionals who play an important role in children’s development. Childcare professionals can be paid as little as $14.66 per hour.
“Childcare fees (before government subsidies) are continuing the well-established pattern of increasing at twice the rate of inflation and at twice the rate of childcare professionals’ wages.
“The government needs to ask itself: where is this money is going? One thing is sure: it’s not going into wage increases for over 85% of childcare professionals whose pay has not increased since October 2008.
“LHMU members know the quality reforms adopted by the Council of Australian Governments in December will not deliver a quality early childhood education sector unless they are accompanied by parallel changes to the overall childcare system.
“What’s needed is a deep, roots and branches, review of the funding and planning system, not more tinkering around the edges. The Productivity Commission study announced today should provide valuable information for the review.
“The government has to take responsibility for ensuring funding is equitable for families and for workers because the bottom line is that wages in this sector are far too low and impact on the quality of education and care of children,” says Sue Lines.
