CHILD CARE TOLL
Parents – and in many cases grandparents – feel the pressure as new mothers return to work
The changes to government payments
When I went back to work after having my first baby, I soon found out that my chosen child care centre was pretty awful. It wasn’t easy to find another one with a vacancy. And when I eventually did the new one wasn’t so good either.
Finally I found a carer called Dianne who ran a wonderful family day care centre. My daughter was happy and loved going there. I was less stressed and didn’t feel as guilty going to work.
Around 44.5% of parents returning to work feel stressed while 42% feel guilty, according to a survey by Real Insurance. But it isn’t just the emotional roller-coaster of returning to work that is hard on parents – 88% say the financial burden of high child care costs takes a toll. Around 81% reckon they are held to ransom by exorbitant child care costs.
Child care costs have jumped by almost 10%pa over the past decade, well ahead of the inflation rate, which is currently 1.9%pa, according to a study by the National Centre for Social and Economic Modelling (NATSEM). And at a time of low or non-existent wage growth, it is harder for families to afford child care. Costs vary depending on where your child care centre is, but some of the most expensive long-day care costs around $200 a day.
The new child care subsidy, introduced in July, is part of the federal government’s push to encourage women to return to
work. But child care subsidies are a double-edged sword, says NATSEM, because while they help improve affordability they also contribute to higher costs.
Child care centres typically have lifted their fees by around 5%-8% in the month leading up to the new arrangements. For some centres it is the second rise this year.
Not surprisingly, 60% of parents have taken on extra hours and 41% have picked up additional work or jobs to ease the
financial burden, says Tania Bradley, a spokesperson for Real Insurance.
Grandparents are expected to face pressure to help parents who are worse off under the new arrangements. They already provide care for around 39% of children aged up to 12, according to NATSEM.
Susan Hely has been a senior investment writer at The Sydney Morning Herald. She wrote the best-selling Women & Money.