Families will need to fork out an extra 10 per cent for council-run day-care services to make up for an $180,000 federal funding loss.
Melton council has been receiving community support funding for its in-home family day-care services since 1975.
But the federal government will cease its funding from July, despite Prime Minister Tony Abbott’s pledge to “act on childcare”.
During their meeting last week, Melton councillors passed a motion to increase fees from $6.40 to $7.10 an hour and to begin consulting staff, educators and families “on a model to recover the loss of external Australian government funding”.
Children’s services manager Vicky Matthews said the council was committed to day-care funding but had found it necessary to raise fees to cover the loss of federal government money.
The council allocated $126,354 to its family day care services in the 2014-15 budget but will need parents to make up the difference.
The report presented to council states that even though the proposed increase is 70 cents an hour, “it should be noted” the actual costs would be less due to families being eligible for the Australian government childcare rebate and childcare benefit.
The report also says that if council decides to outsource its family day-care services to a private provider instead of raising fees, six staff from the family day-care co-ordination unit would be axed.
Family Day Care Australia chief executive Carla Northam said funding for family day-care services was essential as co-ordination units faced an increased job load.
She said an impact statement submitted to the Social Services Minister Scott Morrison – that had sought an extension of the funding loss timeframe and for the government to consider ‘exceptional circumstances’ funding – highlighted the far-reaching affects the amendments to the Community Support Program would have on families, children and the family day-care sector.
Ms Northam said it was important for the federal government to ensure families continued to have access to affordable, quality childcare options.
About 510 children, from about 344 families, receive family day-care from 43 carers across Melton.
