Why childcare subsidy increases may not ease strain on household budgets

Australian families expecting the increase in childcare subsidy rates to deliver some much-needed financial relief are being whacked with fee hikes from childcare centres.

The Parenthood executive director Georgie Dent says while there’s “some risk” providers may be opportunistically raising fees, the reality is that the cost of delivering early education and care has increased.

“This is a complex issue,” she told Jimmy Bartel and Mark Allen, filling in for Ross and Russel.

Press PLAY below to hear what’s fuelling the childcare price hikes

“It’s a real pressure point in financial terms for families so any increase in fees is going to be difficult to manage.”