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Universal childcare: Fair solution or costly burden? Exploring the gaps in the policy debate

Universal childcare promises fairness and accessibility but raises concerns about high costs, limited workforce impact, and disproportionate benefits for high-income earners, leaving many families questioning its effectiveness and fairness.

By news@gippsland - 10th December 2024 - Back to News

The term 'universal childcare' sounds pretty reasonable, doesn't it? It implies that childcare will be fair, accessible, and the right decision for every family. Judith Sloan in The Australian, says the Prime Minister plans to make universal childcare a key element of his election campaign. But when I started peeling back the layers of this policy, I noticed a few red flags.

Many Australian families prefer time with their young children, but rising costs force reliance on childcare, benefiting private-sector profits

Childcare fairness debate

Firstly, as Judith says: The biggest winners will be high-income earners who currently receive proportionately lower child care fee subsidies than those on lower incomes.' Doesn't sound very fair now, does it?

It's important to understand that sending children to childcare is not a first option for many Australian families, even though it may be becoming the norm. In fact, I think many parents are reluctant to use childcare too soon - many want to spend time with their children, especially when they're babies.

But in the middle of a cost-of-living crisis, most parents have no choice but to rely on two incomes to pay the mortgage and feed the kids. So it appears childcare has become a rather lucrative business model for the private sector.

Childcare cost puzzle

In Melbourne, centre-based childcare, which is the most common option, costs anywhere between $70 to $185 dollars PER DAY. When you have multiple kids to factor in, it hardly makes the return to work worth it.

The Productivity Commission recommends that 30 hours, or three days, per week should be made available to all children aged up to five years. Modelling suggests that this policy will have a small impact on workforce participation, adding an additional 17,000 full time equivalent workers.

According to Judith Sloan, the cost of Universal Child Care works out to be more than $200,000 per job created. Doesn't seem like the best use of taxpayer dollars to me. At the end of the day, we all want what's best for our kids and whatever makes life easier for parents. Universal Child Care sounds like a great idea. But as I said earlier this childcare policy puzzle has a few missing pieces.

Pictures from Gippsland Lakes Complete Health Children's Centre Facebook page.

Source: http://gippsland.com/

Published by: news@gippsland.com