Affordable preschool at risk after community preschools hit with 15 per cent unfunded wages increase in 6 months

NSW community preschools are struggling to keep fees affordable after facing a 15 per cent increase in wage costs in just six months.

Out-of-pocket costs for families are set to rise significantly unless the NSW Government urgently increases funding to help keep community preschool affordable.

The 4.75 per cent increase to the national minimum wage comes on top of a 10 per cent wage increase awarded earlier this year following the Fair Work Commission's Gender Undervaluation Review.

Not-for-profit community preschools are now working to absorb both increases, which take effect from 1 July.

Without additional funding, more than 500 community preschools, many of which are run by volunteer parent committees, will be forced to increase out-of-pocket fees to ensure educators and teachers are paid fairly.

Community preschools rely heavily on government funding to maintain affordable fees for families. Without an urgent adjustment to Start Strong funding, the Minns Government risks backtracking on its commitment to affordable preschool for NSW families.

NSW community preschools have also been struggling to retain staff, with educators leaving jobs they love for higher-paid roles in public schools, state-run preschools and long day care services, where wages can be up to 25 per cent higher.

Community preschools and early childhood unions have spent more than a year negotiating with the NSW Government to address these pay equity issues. To date, the Government has not committed to addressing the funding gap for community preschools, despite the decision of the independent workplace umpire.

Community preschools are now calling on NSW Premier Chris Minns to honour the Government's commitment to affordable preschool and provide funding to support professional wages.

Community Early Learning Australia CEO Michele Carnegie said community preschools were being placed in an increasingly unsustainable position.

“Without additional funding, the NSW Government has put these preschools in an impossible position – raise fees for families or watch dedicated educators leave for higher-paying jobs,” Ms Carnegie said.

“The NSW Government’s commitment to deliver universal preschool is under threat if it turns its back on affordable preschool for the tens of thousands of families who access community-run services.”

Britt Mitchell, a parent at Engadine Preschool Kindergarten, said the funding pressures were already being felt by families and services.

“Our service is trying to deliver quality and achieve the best outcomes for children. How can we do that when our staff are leaving for higher-paid jobs in long day care and government schools?” Ms Mitchell said.

“Our educators want to stay, but they simply cannot afford to. It is becoming harder to attract and retain the staff we need without offering wages that are competitive with other parts of the sector.”

Ms Mitchell said services were being left with difficult choices.

“The reality is that the money has to come from somewhere. We either increase fees for families or it comes at the expense of quality programs and resources,” she said.

“Parents in our community are already concerned about rising costs, with some families facing significant fee increases. The cost of everything continues to rise and community preschools cannot keep absorbing these pressures.

“Some families are seeing their fees double. This is a huge blow and I don't understand why the NSW Government is not backing families and children in community preschools by funding the wage gap.”