NSW Government Reduces Child Care Ratios

NSW Government Reduces Child Care Ratios

In a move which has received widespread support from the child care industry, the New South Wales Government has announced a reduction in ratios for children two years and younger from one carer per five children to one carer per four children

Long day care centres in NSW will be required to operate under the new standard by 2010 and the change will bring NSW inline with Queensland and Western Australia which already operate under the 1:4 ratio.

The other states and territories in Australia operate on a 1:5 ratio for under twos.

The NSW Minister for Community Services, Ms Linda Burney announced the change and said the new law was approved by Cabinet following consultation with the child care industry and research into the additional costs to be borne by child care providers.

According to Ms Burney the Government commissioned report prepared by Booz and Company showed that the change would have a modest cost impact which would be outweighed by the benefits for infants in care.

The Booz and Company report found that more than a third (34 per cent) of NSW's long day care centres are voluntarily operating with a 1:4 ratio already.

These centres won't experience an increase in operating costs, however centres required to hire more staff will face a rise in costs.

A survey of child care fees conducted by Booz and Company as part of the commissioned report predicts that that the cost impact of the new law for centres which also offer places for older children will be an increase of $7.59 per child per day.

To decrease the fee impact on under twos it is expected that the cost increase will be spread across the age groups. Based on current cross-subsidising models used by centres the fee impact for under twos could range from $1.19 per pay to $4.39 per day with the older groups paying the remainder of the cost through higher fees.

Ms Burney said this ‘modest' cost increase would be outweighed by the benefits to children in care and the community as a whole.

"Early childhood advocates in NSW have been seeking this change for a long time, and their arguments are extremely compelling.

Research tells us that higher regulatory standards correlate with higher measured quality, and that good quality early childhood care can improve child development and school performance - especially for children from disadvantaged backgrounds.

For babies, the individual care and nurturing they receive is fundamental to their emotional wellbeing and their safety," she said.

Despite vigorous campaigning by the early childhood sector the proposal was rejected by government previously due to a lack of financial detail on the cost impact to centres.

Ms Burney said the Booz and Company report provided the missing detail making it possible for the change to go ahead.