Last month, the governing board of my sons’ child care center made the difficult decision to increase the fee to 5½ percent. As a member of that committee, I participated in the discussions. We thought long and hard before making this move.
So I was very disappointed to see the media reporting that childcare centers are opportunistic and profiteering by raising fees to coincide with the increase in childcare subsidies coming into effect. in this week.
Improving access to early childhood education, including after-school care, is vital to improving engagement in the workplace.Credit: Ryan Stuart
The child care sector is diverse, including for-profit, nonprofit, community-based, and home-based providers. Some centers are large, serving more than 100 children, while others are very small. Our center is community-based and non-profit.
I can’t speak for other vendors, but our decision has nothing to do with profitability. While all centers must consider their own circumstances when setting fees, we have decided to increase our rates to keep up with rising costs and especially to provide our staff with I got a 7% salary increase, in line with inflation. Early childhood educators are among the lowest paid in our economy. Our committee knows that the rising cost of living is putting pressure on employees.
At the same time, as an economist, I am aware that the sector is facing a severe and chronic labor shortage. The Australian Childcare Alliance says the shortage of qualified early childhood educators and teachers is the most pressing issue facing Australia’s early childhood education sector, with an estimated 10,000 needed. early childhood education to fill current vacancies. Low wages are part of the problem.
Loading
The higher fees to fund this raise will be shared among families in our center. We take comfort in knowing that most families will qualify for a higher child care benefit (CCS), which will help them in some way to cover the higher fees.
This pay increase means improved financial security for our employees, in an environment of rapid inflation and rising interest rates. It means minimizing mental health risks and burnout from overwork. It shows employees they are appreciated and improves employee retention. That means employees are less stressed, less burned out, and more productive. It means a happier and more stable group of educators who can produce better outcomes for our children.
This is a good result for now. But it’s not clear how we will continue to maintain employee real wages, especially if inflation remains high. And in the absence of another CCS increase, any future fee increases will be borne entirely by families.
