Early education reforms are being implemented to strengthen the sector but it could put extra pressure on some providers, says an Illawarra business. Photo: Nadezha1906.
An Illawarra early education provider has slammed state funding reforms coming into effect at the start of next year, saying the changes could put pressure on families and providers.
The NSW Government has announced reforms will take effect from January 1 2027, with new programs pitched as “more consistent and sustainable so all families can access high quality, affordable early learning”.
But BFS Children’s Services, formerly Big Fat Smile, is concerned the commitment to strengthen the sector could come at a cost, with incoming changes including cuts to the Start Strong program to remove direct preschool program funding for long day care services.
“As a not-for-profit provider committed to ensuring every child has access to high-quality early learning, we’re concerned the proposed changes could disproportionately impact 75 per cent of our families who depend on our services for both early education and the flexible hours they need to participate in the workforce,” BFS Children’s Services CEO Kim Bertino said.
The Start Strong for Long Day Care program will be replaced with a new Fee Relief for Long Day Care program, which will see an increase in fee relief funding for eligible children attending long day care and a continuation of fee relief funding for three-year-olds, but the services will only be eligible for fee relief if they provide a preschool program.
Program payments for long day care services will cease in December, with the Federal Government to remain the primary funder for long day care through the Child Care Subsidy.
A new Universal Preschool Funding program will replace the Start Strong for Community Preschools program which includes program payments changing to reflect the expected operating costs of services, including staffing levels appropriate for the service enrolments and required ratios, industrial award rates and conditions, and other operating costs required to deliver safe and inclusive early learning.
“Funding to staff ratio will include a mandated pay increase for early learning staff and may be used towards a mix of non-contact cover time, director and administration roles,” the NSW Education website states.
“Services that currently operate significantly above the required staff-to-child ratio should plan for any adjustments to operate within this funding framework.
“Adjustments may include increasing the number of children in priority cohorts that are enrolled, including children eligible for the new Disability and Inclusion Program or enrolling more three-year-old children who now receive equivalent funding to four-year-olds.”
But with not-for-profit providers already managing rising workforce, compliance and operating costs, some aspects of these changes could cause further financial pressure, BFS Children’s Services said.
“Providers may face difficult decisions about how these programs are delivered and funded in the future, creating a risk that increased costs are ultimately borne by families at a time when many are already experiencing significant cost-of-living pressures,” Kim said.
“Families should not be disadvantaged for choosing the service model that best meets their requirements.
“BFS has long advocated for improved wages and conditions for teachers and educators in community preschools to better align with those in public schools. However, strengthening one part of the sector should not come at the expense of another. These funding changes risk affecting children, families and educators who are equally important to the delivery of high-quality early childhood education across NSW.”
BFS is calling for greater engagement with the sector to ensure a more balanced funding model.
“A sustainable and equitable funding model should recognise the vital role both community preschools and long day care services play in supporting children’s learning, development and school readiness, while ensuring families can access the type of service that best meets their family circumstances,” Ms Bertino said.
More information on the funding reforms are available on the NSW Education website.
Original Article published by Keeli Dyson on Region Illawarra.
