The Hunter early learning sector is headed for crisis if the Australian Government doesn’t act urgently and provide support to childcare services in the region.
That’s the message from Newcastle federal MP Sharon Claydon and her Hunter counterpart Joel Fitzgibbon.
Both agree the government delivered a welcome waiver this week for childcare gap fees for families keeping their children at home during COVID-19, but the pair is concerned about who has got to foot the bill.
“This offer means very little if the sector is left hanging out to dry,” Ms Claydon said.
“My office has received many emails and calls from concerned Newcastle parents and early learning centres alike who are worried about their long-term feasibility.”
Ms Claydon said she was aware a lot of services were charging gap fees because they couldn’t afford to give up their income.
“Providers are being put in a no-win position, having to choose between either waiving gap fees for families, and taking such a hit to their revenue that they are at risk of closing their doors, leaving early educators without work and essential workers without care for their children; or not waiving gap fees for families, leaving parents upset that they have to pay for a service they cannot access, and risking them un-enrolling altogether.
“Many providers are being forced to charge parents full fees because the Morrison government is refusing to offer replacement revenue to childcare centres.
“Scott Morrison needs to ensure families are not left out of pocket during lockdowns for childcare they cannot access, because they are doing the right thing and staying home.
“There are many providers who are struggling to stay afloat because they’re ineligible for other business support payments.”
During the prolonged Victorian lockdown last year, the Australian Government introduced a financial package for early learning services that allowed them to stay open to serve essential workers, while also waiving gap fees for families, and surviving from lower attendance levels.
“It would be truly devastating for Novocastrians and our local economy to see the collapse of the early learning sector,” Ms Claydon said.
“It’s crucial that the Morrison government acts urgently and provides them a support package.”
Mr Fitzgibbon said the government was pitting childcare centres and families against one another.
“Some facilities are already struggling in the face of COVID-19,” he stated.
“Childcare centres need to remain open to cater for essential workers, but staffing and other costs have to be met.
“For many, including not-for-profits, this won’t be possible.
“The federal government must both waive the gap fee and compensate the centres for the loss of income.
“It did it in Victoria last year and it should do it now for those in NSW.”
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