The Australian reported last week that the nation’s childcare system was facing a significant overhaul, with the draft Productivity Commission report suggesting families have access to one simplified, means-tested payment that would cover the use of nannies.
It seems like the perfect solution, but if we take a look into the future, what will it mean for the childcare industry as a whole?
With the introduction of nannies I see the beginnings of a ‘Mary Poppins effect’ sweeping Australia.
That is: short term, fly-in childcare solutions to address demand and flexibility issues in capital cities.
The problem is that the Government has not committed additional funds for childcare. So what will we lose to fund these additional rebated services?
One area we cannot afford to lose out on is education.
The previous Labor government introduced the National Qualifications Framework and seven quality areas for childcare centres and family daycares to be assessed against. There are minimum education standards for educators and ratios for educators to children that exist in our current system.
The childcare sector itself has invested a lot time in adjusting, developing and recording their practice to adhere to new standards and it hasn’t been without it’s problems.
With a further rebate being provided to nannies we need to ensure the government applies the high standards it has applied to other care models to nannies.
Research shows us again and again that investing in under 5’s can assist in developing children’s confidence in approaching learning and their readiness for school and can contribute in addressing major issues such as generational poverty.
Will we be moving away from the educational model of childcare that has been developed to just focus on a care model?
The major issues we are facing in childcare from metropolitan areas to regional and remote areas is accessibility to high quality care and flexibility in care.
There is no one solution or model that can address these issues.
I worry the introduction of rebates for nannies across Australia would shift the economies of scale childcare centres’ are afforded, even if access is restricted to shift workers and wouldn’t that then send nanny agencies fees through the roof?
According to the childcare industry report produced by IBIS World, “childcare centres’ need to have 70% occupancy in order to remain profitable.”
Without the numbers of children in childcare centres or family daycare we would see one of two things: a shift to bigger business groups buying up childcare centres as assets to make it more economical, or a shift to a not-for-profit model.
What we really need to talk about is our models of care and education in the under 5’s.
This is where we are making investments and savings for the future. We need to be looking overseas, to be testing and trialling different models of care like the flexible care options the Abbott government has recently concluded trials for.
We need to be talking to employers about how they can assist in providing care and education on-site, and how we can assist not-for-profit care facilities with reduced hours increase their accessibility for working parents.
There is no doubt that childcare needs an overhaul. But opening the door to nannies and other short-term solutions might just be like taking a spoonful of sugar to mask the taste of the medicine we really need to take.