Mid-way into the endless 2016 election campaign, Labor has released the details of its early childhood education and care policies.
Tag: Child Care Rebate
Sussan Ley is obviously familiar with the idea that you don’t come to a party empty-handed.
Before almost 2000 delegates at the opening day of Early Childhood Australia’s National Conference on Friday, the Assistant Minister for Education announced that the Federal Government would commit to a further 12 months of funding for the National Partnership Agreement on Preschool funding.
This Agreement provides funding to the States and Territories to top up their existing funded Preschool hours to 15 per week for every child. It was due to cease at the end of this year, and since its election in September last year the Government has steadfastly refused to confirm if the funding would be extended.
This failure to provide certainty has been regularly condemned by the sector, by early learning experts – and even the Productivity Commission has recommended in its draft report that the funding should be kept.
Minister Ley’s announcement has provoked mixed reactions. The extension of funding is undoubtedly welcome, but the caveat that it is only a 12-month extension once again places the sector in a state of uncertainty.
The decision provides further emphasis on the core problem facing the Government’s approach to childcare and early childhood education: It doesn’t have one.
Ever since their election, and in fact during most of their time in Opposition, the Abbott Government has been content to provide regular and scathing assessments of the Labor Government’s ineptitude and profligacy in this area.
“Fees rose 53% under Labor,” intones the Assistant Minister so regularly it is probably in her email signature block. “Operators are drowning in red tape” is another popular catchphrase.
Both those lines can be (and regularly have been) strongly rebutted – but one year after their election, there seems little point arguing to toss when we don’t even know what game we’re playing.
The early childhood sector and the community are no closer to understanding what the Government’s approach to such a critical policy area is now than they were one year ago. 52 weeks after they were handed the keys to Parliament House, it is surely not unreasonable that we might have an inkling of what the Government thinks needs to be done with early learning and childcare.
The go-to excuse has always been the Productivity Commission. Handballing the political hot potato to the Commission was a short-term measure to avoid scrutiny and making any actual decisions. Examining the issues and factors surrounding the sector is a worthwhile exercise, and the Commission’s draft report has already sparked debate in the community.
But the Government’s refusal to even point in the general direction of a policy position until they have had the chance to read the final report is now bordering on lunacy. Governments, and in particular this Government, are not unbiased implementers of recommendations from independent reviewers.
Governments are values-driven, and have a particular ideological bent. It is surely time, regardless of what the Commission recommends, that we have some idea of how the Government even views early learning.
This is a significant community issue, and plays into the lives of practically every Australian family. Regardless of whatever specific concerns people may have had about the policy settings of the previous Labor Government, they were at least clear that they stood for a growth in funding to early childhood education, a national benchmark of quality and support for children and families experiencing vulnerabilities to access early learning.
We have no such direction from the current Government, even in such general terms. In Opposition, Sussan Ley regularly lambasted the National Quality Framework as “the dead hand of government regulation”, while in Government has defended it from attacks by Senator David Leyonhjelm.
Tony Abbott and Joe Hockey have grimly told Australians that the budget is tight and no extra money can be found for early education in the Budget, while allocating $5.5 billion to a Paid Parental Leave scheme that barely even has majority support within their own party.
The Government is under no obligation to outline specific early education policies until they are ready – but they have surely run out of time to keep their general thoughts on such policies hidden and unknown.
They have certainly not been shy about coming forward with their ideological positions on a number of other issues such as free speech, the environment and education to name just a few.
Which begs the question: why is the Government so silent on early education?
Two possibilities suggest themselves – either they have no idea what to do and how to do it; or the plans they do have are too shocking to share with the electorate.
It’s hard to know which is worse.
The due date for submissions to the Productivity Commission’s Inquiry into Childcare and Early Learning has now passed, and the Commission now begins the process of preparing a draft report for the Federal Government. This draft report will be available in early July.
It is worth discussing the likely paths that the Federal Government will take when the Commission delivers its final report at the end of October.
The National Quality Framework (NQF) was a national push to set baseline standards for children’s education and care. It was a Federal Labor initiative but was signed up to, and continues to be implemented by, State and Territory Governments of both sides of politics.
It set significant new standards for qualification requirements, ratios and supporting children’s learning to be phased in between 2012 and 2020.
Despite some showing some limited support during the 2013 election campaign, the Government has generally attacked the quality reforms as being an unnecessary regulatory burden and described centres as drowning “in a sea of red tape”.
The Assistant Minister for Education Sussan Ley has directly linked the implementation of the NQF to a sharp increase in fees for families.
The biggest political issue in the children’s education and care sector is affordability. Between June 2012 and June 2013 there was a 45c rise in the average hourly fee for children’s services in Australia, on top of similar increases in the preceding years.
When in Opposition, the Coalition used the fee increases to consistently attack the Labor Government.
It is clear from the most recent data that the out-of-pocket spend for families remained at a relatively low level of 8-9% of total income across all income brackets, due to Labor’s increase in the Child Care Rebate from 30% to 50%.
But due in part the byzantine nature of the subsidy system and an effective political campaign of negativity from the Opposition, the narrative on runaway fee increases struck a chord with families.
The Coalition has strived to continue that narrative in Government, firmly placing the current issues of affordability onto the Labor Party.
The Government will surely be aware however that this will only work for a short period of time. Politically, this issue will soon be owned solely by them.
The Government has so far resisted committing to any specifics on changes to the childcare sector, stating that they are waiting for the Productivity Commission to provide their final report.
But when it comes, the Government will need to provide a clear and detailed response to the issues facing the sector.
The key funding lever for the Government is the Child Care Benefit and Child Care Rebate subsidies (both introduced by the Howard Government).
They may seem completely unconnected, but recent refusals by the Government to provide industry assistance to Holden and SPC Ardmona may actually provide us with some insight into their thinking on the CCB/CCR subsidy.
The decision to deny assistance packages to those companies has demonstrated that the Government is prepared to make tough decisions on spending taxpayer money to support businesses.
The childcare sector is currently a majority private enterprise, with private operators making over two-thirds of the sector. The rest are run as not-for-profit community services.
The CCB/CCR subsidy essentially acts as indirect industry assistance to the operators of children’s services. Approximately $5 billion a year is spent on that subsidy – a not insignificant amount of money. Is it possible that the Government would consider lowering that amount of subsidy?
This would come at a huge political cost. In the June quarter 2013 over 742,000 families accessed some form of formal childcare.
Having spent their time drawing attention to the affordability issue as a political weapon, the onus is now on the Government to take steps to address it.
To complicate matters, they have instructed the Productivity Commission that any suggestions they put forward must be within “current funding parameters”. This leaves them with only a few options.
Either the CCB/CCR subsidy is lowered, a politically “courageous” decision as Sir Humphrey might put it, or the quality standards currently being implemented by the National Quality Framework are drastically rolled back.
Given the political considerations, the second option is far more likely. Which puts a lot of the Government’s statements in the media into context.
The focus on “over-regulation” and “red tape” in the media since the implementation on the NQF, and its intense focus over recent weeks, can be seen as laying groundwork for a large-scale downgrading of those reforms.
They can be sold not as a cut on quality outcomes for children, but as a cut on red tape.
This would be a disastrous outcome for Australia’s children. Advocates for quality education and care have stressed the importance of taking early learning seriously as in investment in Australia’s future prosperity.
It would be shame indeed if political expediency hampers a once-in-a-generation opportunity for the Productivity Commission Inquiry to recommend sweeping structural reforms to quality and affordability – without choosing one over the other.
Affordability the battleground for 2014
The June 2013 quarterly from the Department of Education on ECEC will be available later today [UPDATE: is now available here], and the political brawl of affordability has already begun according to Judith Ireland.
The Education Department’s June 2013 quarter report on childcare and early learning, released on Monday, shows the average fee, per hour, of long day care was $7.50 between April and June last year, when Labor was still in power – up from a $5 average in the September quarter of 2007, at the end of the Howard government.
”Childcare now costs the average parent about an extra $70 per week per child than it did before Labor took office – for the exact same number of hours,” Assistant Education Minister Sussan Ley said. ”That’s extremely concerning.”
Sussan Ley and the Government are of course delighted with these figures and we will no doubt be hearing a lot of them over the next few months as the Productivity Commission does its work.
Kate Ellis has of course hit back at the claim, accusing the Government of being “sneaky” with the figures (but with no further details, at least in the media at the moment).
Labor raised the Child Care Rebate from 30% to 50%, and have always used this as their standard defence against political attack on this issue. It seems unlikely that this will work this time.
As Sam Page from Early Childhood Australia points out:
Early Childhood Australia chief executive Samantha Page said with wages making up about 80 per cent of long day care costs, wage increases over the six-year period would account for a ”fair proportion” of the cost change. But she said Labor had not adequately funded a 2012 national quality framework, that included reforms such as standardising child-to-staff ratios.
Labor’s failure to adequately prepare for the implementation of the National Quality Framework, and the resultant impact on operational costs for centres and therefore fees, is now reaping the obvious political dividends.
As I’ve written before, the National Quality Framework was a significant and critical reform that was carried out by Labor. But Ministers Kate Ellis and Peter Garrett both seemed completely oblivious to the broader landscape of ECEC.
Raising the CCR was supposed to be their cover for affordability and cost-of-living attacks from the then-Opposition. But as was inevitable, this encouraged a huge uptake in the usage of children’s services, long day care in particular. This pushed up waiting lists, particularly in the 0-2 age range, leading to regular media reports on inaccessibility.
The new qualification standards by themselves were always going to see fee increases for a sector that has always struggled to recruit and retain qualified staff. The signature failure of the NQF implementation was the seeming desire of the ALP Government to pretend there ever was a staffing problem (until in an election year it became politically convenient to finally realise). A funding and training package for this issue, that covered the entire sector, should have been rolled out in parallel with the NQF.
The ALP will spend 2014 being hit repeatedly over the head with the accessibility and affordability issue. They spent their time in Government pretending that quality wouldn’t cost anything. Will they spend their time in Opposition developing an early childhood education policy that can structurally address these issues?
The Government will of course continue their attacks – but this potentially leaves them with a very tricky problem.
Going on and on about affordability particularly rather implies that they think something should be done about it. At this stage they are refusing to commit to anything before the outcome of the Productivity Commission report.
But by raising this as a regular issue for the public, the Government will at some stage be held responsible for it. They will have to look at measures to improve affordability. But this Government is determined to be seen as economic conservatives – it seems unlikely that further increases to the CCR or CCB would be on the cards.
But what are their options? In their terms of reference the Productivity Commission has been instructed that any recommendations must be “within current funding parameters”.
This leaves the troubling conclusion that the only way to reduce fees for families is to roll back quality standards, particularly qualification requirements and ratios.
If that’s the case, we’re looking at the groundwork for that announcement today.
Greens plan to lower childcare fees
The Australian Greens are today releasing their plan to combine the Child Care Benefit (CCB) and Child Care Rebate (CCR) payments and increase the amount paid to some families. The plan is costed at $2.3 billion over 4 years.
Some families, however, would get little new assistance, while others stand to gain more because the system would be skewed to help those who need it most.
Greens childcare spokeswoman Sarah Hanson-Young said there was a clear need to streamline funding mechanisms to provide assistance to more parents who need it and promote higher standards of care.
”The crisis in childcare means fees are skyrocketing and availability is dropping, especially in high-need areas,” she said.
”If Australian children are going to be cared for in centres with sufficient numbers of qualified staff, the government must commit to increasing support to the sector.
”Without increased funding to childcare, families won’t be able to have the high-quality, affordable, flexible care that they need.”
Source: The Age
Streamlining the assistance payments makes sense, but it’s disappointing to see yet another policy announcement from a major party that fails to address the structural problems facing the sector.
For a great look at how the sector needs structural reform, check out this great story from ABC Radio National.
UPDATE: Green’s policy detail now up here.
Attention, fellow Stalinists! We’re rumbled!
Over the weekend, Judith Sloan posted a reasoned, referenced and thought-provoking article on the Catallaxy Files on the state of early childhood education and care (ECEC) in Australia.
Oh, no, sorry. She actually posted this.
Now I usually don’t work up the energy to respond to an individual piece on my chosen profession (most likely due to a lack of proper education from my second-rate university), but in this case I felt the need to address one or two of the points.
Apologies in advance for any typos or errors of fact – these must be expected of anyone as dim-witted as an early childhood teacher.
Sloan has appeared to have just noticed the Federal Government’s implementation of the National Quality Framework for ECEC. It did only commence in January 2012, so to have noticed its existence by June 2013 is a credit to Sloan and her undoubtably first-class tertiary education.
Sloan’s incisive analysis of the sector and its “dim-witted” Minister, Kate Ellis (possibly the worst insult: direct comparison to a politician), identifies rising costs and issues around the freezing of the Child Care Rebate.
But she holds off on the truly terrifying revelations until the next paragraph. Children of one of her relatives, she informs us (presumably visibly shuddering as she types) are sent home with a weekly newsletter, informing the innocent and fear-stricken families of what has happened at the centre that week.
Now, in centres I have worked at and managed I used to send out similar missives. I can only now apologise to those families, and indeed the nation at large, for this weekly campaign of terror. It is clear now that the positive feedback from families and sense of community that was generated by these updates was in fact a smokescreen, lies stammered from the mouths of mothers and fathers clearly suffering from the most recent onslaught.
Sloan then pounces on a quote from a Centre Director, caught out in what I can only assume was a moment of drunk pleasure after printing out that week’s newsletter, speaking about working to ensure “the consistency and quality of services provided to children and families across the country.”
Pointing out the very real and tangible similarities with a framework supporting children’s learning, health and safety and the worst excesses of Stalinist Russia, Sloan finally unravels the dark heart of childcare centres and preschools everywhere.
I can only for my part say that I would happily be doing more to indoctrinate the mindless future-socialists under my command, if only my second-rate education hadn’t left me with only the barest understanding of Socialism itself. It’s some kind of Facebook or something, right?
Now there are those of my colleagues who will speak about the importance of having a robust framework around the safety, wellbeing and learning of children in a sector where over a million children attend some form of early education and care.
Some of those colleagues might even foolishly (and confusingly) point towards recent events in Ireland, where a combination of loose regulation, low-paid and overworked staff have led to direct institutional harm to children.
I have even, shockingly, heard that early childhood teachers working with young children raise the quality of their learning and their potential future prospects. Often in the same breath as people telling me that targeted and play-based learning sets children up for future education, and is particularly needed for vulnerable children.
We can only own up now, and implement Sloan’s prescription of “greater choice, diversity and competition”.
After all, the ultimate expression of capitalism is farming out the education and wellbeing of children to the tender mercies of the free market.
The current funding model – a John Howard special – removed the direct funding of services entirely from the system, replacing it with standardised fee subsidies for parents.
The rhetoric is straight economics 101: parents are the best judges of the quality of care so they will choose the right services. They are assumed to be able to compare prices, hours, quality, like choosing a Laundromat, and be ready to move the child if there is a better local offer. The model assumed a level playing field between consumer and provider but a perennial shortage of care in most areas put the power into the providers hands.
“Child’s play: Coalition childcare inquiry doesn’t go far enough”, Eva Cox (The Conversation)
While the government and opposition have put forward competing plans for paid parental leave to ease the financial burden on families with young children, childcare remains a significant cost for women who want to resume their careers.
Mr Jeremenko [The Tax Institute’s Senior Tax Counsel] is to call for a reconsideration of rules that define childcare as a private expense that cannot be counted as a tax deduction.
“Push for tax claim on cost of childcare”, David Crowe (The Australian, paywalled)