Childcare – why should you pay for it?

Moreover, whereas childcare workers were once just sensible, caring people, most with children or grandchildren of their own, they must now hold post-school – and sometimes even university-level – qualifications. Mothers who have successfully raised four children of their own cannot become childcare workers unless they have obtained the appropriate qualification, while those who have a qualification but no prior childminding experience are fine.

There has also been a ratcheting up of regulation of the physical environment, the programs and routines offered, plus the ratio of staff to children in childcare centres.

For the most part this has been driven by middle-class parental guilt. That is, parents seeking to justify the decision to place their children in childcare are demanding standards that allow them to believe their offspring are receiving a better start in life than if they stayed at home. It makes them feel better about leaving the kids with someone else.

Unfortunately, there is no evidence to show that these standards are enhancing children’s outcomes. This was conceded in the Productivity Commission Inquiry Report into Childcare and Early Childhood Learning. The evidence indicates that the only children who benefit from ECEC are from dysfunctional households, such as those where substance abuse is an issue.

Furthermore, the ramped-up regulation and credentialism have made childcare seriously expensive. Even moderately well-paid parents baulk when the cost is almost as much as they can earn by going to work. For the poorest parents, especially single mothers who have a strong need to return to work, it is simply out of reach.  

Childcare advocates, especially those with a pecuniary interest, are seeking to convince the government to implement a universal ECEC system, based on recognising early childhood education as a fundamental need. Naturally they claim this should be provided at minimal cost to parents, arguing it would give children the support they need to thrive into adulthood, while parents, particularly women, would be better able to balance work and care responsibilities.

This is a profoundly elitist view, based on the assumption that virtually all women prefer to return to work, and that virtually all children benefit from early childcare education. As previously discussed, neither is true. Moreover, the cost of such a system, tens of billions of dollars, would be borne by taxpayers.

What is never considered is changing the incentives so mothers do not feel so pressured to return to work. If income taxes were significantly reduced by, for example, allowing single income households to split their income between working and non-working parents, the pressure would ease. If the cost of childcare was tax deductible, it would help. If fuel excise plus GST did not take over half the cost of fuel, households would have more money for other purposes. If housing was not so heavily taxed and regulated by local, state and federal governments, there would be more houses at affordable prices.

And if childcare was less regulated, with only those opting for early childhood education paying for it, the cost of ordinary childcare to mothers who genuinely need it would be more affordable.

As it stands, ECEC is a taxpayer-funded elite middle-class racket. Rather than hit taxpayers for ever increasing subsidies, the sector needs to be substantially deregulated.  Middle and upper-middle class families who expect gold-plated, diamond-encrusted childcare – with its university educated workers and low staff ratios – should pay for it themselves.