Childcare fee hikes, staff cuts

CHILDCARE centres are slugging parents with higher fees, sacking staff and even cutting back on nappies and food in a race to protect profits due to increasing competition.

A quarter have also cut back on specialist programs such as music or sport.

A survey shows 42 per cent of centres have increased fees because they do not have enough children enrolled to cover running costs.

Three-quarters of centres blamed the opening of rival centres over the past two years for the oversupply. And 42 per cent of centres have increased fees to make up for the losses, the Community Early Learning Australia survey found.

Some daycare operators believe that government-funded paid parental leave has created a shortage of babies in daycare, as parents can now afford to stay home to care for them.

The national survey shows that 12 per cent of centres have made some staff redundant and 38 per cent have not replaced staff who resigned.

A small number have “reduced menu choices or quality’’ or have “reduced nappy service or quality of nappies’’.

CELA chief executive Diane Lawson said centres were losing money because they had to comply with strict government regulations on staffing and quality.

She warned that too many new centres were being built in areas of low demand, and called for stricter controls.