Parents say - Waiting List Fees Should Be Banned

Parents Say…
Waiting list fees should be banned

Following our article last month on waiting lists for child care we asked you to take part in a poll to tell us what you think about the current situation with regards to waiting lists.

Our poll revealed that 72% have paid waiting list fees for child care, with 20% having paid over $75 per child. 79% of parents had been on multiple waiting lists at any one time, with 33 % being on two to three; 18% on four to five lists; 14% on over five waiting lists and 13% saying they'd lost count on how many they'd been on.

While 23% did feel that waiting lists are legitimate practice, 65% said they were not legitimate; with 62% saying waiting list fees should be banned and 86% saying they should, at the very least, be regulated to ensure parents weren't being ripped off.

Regulations that should be imposed include a maximum waiting list fee (regulated) favoured by 37% of parents
Maximum number of people allowed on a waiting list (supported by a fifth of parents)
Fee reimbursement after set number of weeks wait (asked for by 43% of parents)

Almost half of the respondents called for all of the above regulations to be introduced.

Suggestions included a Central Waitlist System or online tracking system to see where you are on the list. Most respondent's comments about the wait list fee were about the lack of service you get for paying that fee, such as no follow up calls from the service or courtesy call to say where you currently are on the list.

There were also complaints about the centres that also charge a deposit for a place – usually around two weeks fees or equivalent and sometimes as much as $1800 - on the basis that the child will take up that place. This deposit is only refunded when the child leaves the centre and only if the required notice has been given.

Roxanne Elliott, founder of CareforKids.com.au says: "We understand that waiting lists are part and parcel of running a busy child care centre and that some administration costs needs to be covered. However administration costs implies that there is some administration and management of the waiting lists whereas I think most parents' perception is that the money's paid but nothing much happens after that. The results of the poll certainly indicate that there needs to be more transparency on how waiting lists are administered so services are effectively managing parents expectations".

Although there is no regulation process planned with regards to child care waiting lists, Kate Ellis, Minister for Employment Participation and Childcare said: "I understand parents' frustration about the practices of some child care providers who charge fees to place families on waiting lists, with parents still required to follow up on the prospect of securing vacancies as they arise".

"Unfortunately, these practices are commercial decisions made by individual child care operators. Where families do not consider that the terms of charges have been fully disclosed to them, I would encourage them to pursue those issues with their relevant State or Territory consumer agency", she advised.

The waiting list issue is naturally a result of supply and demand – lack of supply and lots of demand - so those child care centres in areas of high unmet demand are always going to be in a position of strength.

On the issue of unmet demand, Ellis said that the Federal Government understands that the availability of child care places can be an issue for some families and that it has made around $3.8 billion available in 2011–12 for Child Care Benefit and the Child Care Rebate.

"This is intended to both reduce the net cost of approved child care for families and provide strong incentives for child care operators to move into markets of high demand", says Ellis.

"Provided services meet the relevant state or territory licensing regulations and local government planning laws, there is no restriction on child care operators opening new Long Day Care and Family Day Care services in areas where there is unmet demand".