New rivals cut quality of daycare

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 of them have also cut back on specialist programs like music or sport.

A survey shows 42 per cent of centres increased fees because they don’t have enough children enrolled to cover costs.

Three-quarters of centres blamed construction of rival centres over the past two years for an oversupply.

Some daycare operators believe government-funded paid parental leave has created a shortage of babies in daycare, as parents stay home.

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

Two thirds of centres have more vacancies and a lower occupancy rate now than in 2015.