The Gillard Government will invest up to $10 million from the National Workforce Development Fund in early childhood workforce training, creating up to 2000 extra training places, Minister for Early Childhood Peter Garrett said today.

Mr Garrett also announced an expansion of the early childhood education teachers HECS-HELP scheme, which reduces the HELP debt of early childhood teachers working in areas of high need.

“These new initiatives are in addition to the $190 million already committed to support the early childhood workforce, part of the Gillard Government record $21.7 billion investment in early childhood education and care,” he said.

“The funding made available under the workforce fund is expected to create up to 2000 extra training places for new and existing workers, and is on top of the Gillard Government’s decision to uncap university student places to open the doors of our universities which has already given an additional 100,000 students the opportunity of a higher education.

"Extending the HECS reductions available to early childhood teachers will mean about three times as many teachers will be given help with the costs of their studies.”

Today’s announcement comes as the Productivity Commission releases its final report into the Early Childhood Development Workforce and the Government’s quality reform agenda.

Mr Garrett said while the report acknowledged the Government’s substantial reform agenda, it over-estimated the cost impact for providers and families and overlooked the impact of the work already being carried out to increase the supply of qualified early childhood teachers.

Under the National Quality Framework being phased in from 2012 to 2020, childcare centres will have to meet certain requirements on staff ratios and qualifications, and service quality. Separately, the universal access commitment agreed by all states and territories will ensure every Australian child has access to 15 hours a week of pre-school education, delivered by a university-qualified teacher.

“No other Government has done more than the Gillard Government to improve the quality of early childhood education and care. And no other Government has done more to help ease the pressure of childcare costs on family budgets,” Mr Garrett said.

“I am proud of our increased investments in child care affordability, which have seen the percentage of family disposable income being spent on child care almost halved since 2004, dropping from 13 per cent to just seven per cent in 2010 for families with one child in full time care and earning $55,000 per year.

“We’ve increased the cap for the Child Care Rebate, to $7500 per child. Crucially, the CCR is not means tested, meaning it is available to every Australian family where a parent works or volunteers for at least an hour a week – a huge help for busy families.

“We expect any cost increases next year as a result of our quality reforms to be modest. Independent modelling by Access Economics predicts that the out of pocket cost of these reforms for a family with one child attending full-time long day care and on an annual income of $80,000 will be around $8.67 in 2014-15 – far less than the figures in the Productivity Commission report.

“Already, the Government subsidies cover up to 76% of average fees for a family earning $55,000 with one child in full-time care, and 66% of average fees for a family earning $85,000 with one child in full-time care.”

Mr Garrett said the report’s modelling also did not take into account existing workplace initiatives to increase the number of qualified workers, including: 

• $115 million to support an expected 8000 people per year, including existing child care workers, to gain a Diploma or Advanced Diploma in children’s services;
• $53.9 million for 1500 additional ongoing university places for students wishing to undertake early childhood education qualifications;
• $83 million to reduce the HELP debt of education and nursing graduates, including early childhood education graduates; and
• $9.2 million to support Recognition of Prior Learning for staff in the early childhood education and care sector.

“We know we have a big task ahead of us to improve the skills of our early childhood workforce to ensure they provide the best possible care to our children,” Mr Garrett said.

“That’s why we’ve agreed a phased implementation with the states and territories, to ensure that service providers have the time to adjust to the reforms and minimise the costs on families.”

The Government’s interim response to the Productivity Commission report is available at http://www.deewr.gov.au/EarlyChildhood/LatestNews/Pages/InterimResponsetoPCReport.aspx.

A full response will be published next year.