The changes to Community Support Programme funding could see:

- Thousands of families without child care

- Many more thousands of children on already lengthy child care waiting lists

- Countless working parents leaving the workforce

- Thousands of educator small business closures

- Service staff joining unemployment queues in communities right across Australia

 

Under changes to the Community Support Programme (CSP) in the 2014-15 Federal Budget the Department of Education will cease all CSP contracts with family day care services as of 30 June 2015. All services will need to reapply for CSP funding, and will be assessed under a new eligibility criteria.

Under the new criteria, family day care services will find it very difficult to be deemed eligible to receive CSP funding and as such, the changes will have a dramatic and direct affect on the bottom line of most family day care services.

 

What is the impact of these changes?

- To compensate for this loss of revenue the options available to services are limited. In some cases cost saving measures and operational efficiencies may account for a small amount of the shortfall in revenue.

- In most cases however services will be forced to increase fees to parents. For a full time child in care (50hrs) the service will need to recover $34.50 per child per week (more in rural and remote areas).

- In many areas where families do not have the capacity to pay increased fees, services face the very real prospect of closing their doors.

 

What are we asking of government?

1.       Review the changes to eligibility criteria: to ensure that they do not have unintended consequences including the closure of services providing high quality education and care in areas of need across Australia

2.       Consult with the sector as part of the review: regarding solutions to the potential impacts of changes to CSP Funding and with services, educators and families to fully understand the impact of the changes.

3.       Extend the transition time:  to allow sufficient time for a comprehensive review and for the development and implementation of changes to the business model.

4.       Consider “exceptional circumstances” funding:  to ensure that the funding changes do not result in high quality services closing their doors, leaving families without quality, affordable child care.

 

How can you help?

- Tell us how the changes will affect you! Share YOUR story about how the changes will affect YOU. Complete the short survey click here

- Join the conversation! 'Like' our Families Need Family Day Care Facebook page for the latest information, to network with your colleagues, to ask questions and to show your support.

 

Clearly, while the changes to funding directly affect services, every family day care stakeholder from children and parents to educators and service staff, will pay the price of the changes to the Community Support Programme.