The Greens have welcomed the Government’s backflip on ending pay rises for early childhood education and care workers, but say it is keeping families in the dark about how much providers will be allowed to increase fees under the extended program.
Extending the Worker Retention Payment is critical to avoiding a Christmas-time pay cliff for early childhood educators. The Greens have consistently called on the Government to reverse its decision to leave the extension out of the May Budget and honour its promises to properly value the sector. The threat of industrial action from the UWU has forced the Government’s hand.
While today’s announcement will come as a welcome relief to educators and providers, Senator Hodgins-May said families still face uncertainty about how much more they may be asked to pay for education and care next year.
To be eligible for Worker Retention Payment funding, providers must agree to limit fee increases. Under the current program, fee rises are capped at 4.2 per cent, but the Government has not disclosed what the cap will be under the extension.
Out-of-pocket early childhood education and care costs have already risen by 9 per cent in the year to April 2026, more than double the rate of inflation over the same period and well ahead of real wage growth.
As stated by Greens spokesperson for early childhood education and care Senator Steph Hodgins-May:
“The early childhood education and care sector has consistently been undervalued by this government.
“This announcement is long overdue, but it will provide some much-needed relief and certainty for early educators and providers.
“But in classic Labor fashion, they’re still keeping families in the dark about a key detail.
“While educators now have more certainty about their wages, parents will be forced to cross their fingers and wait to find out how much more they might be paying for childcare next year.
“Labor knows what that fee cap will be, but they’re keeping it under wraps and saying ‘don’t look over here’.
“For many families, childcare is one of their biggest expenses after rent or a mortgage, and every increase means harder choices about work, study and family budgets.
“The truth is that Labor still hasn’t grappled with the real problem: a market-based childcare system that is failing both families and educators.
“Until we see genuine stewardship towards universal, high-quality and affordable early education, we’ll keep getting half-measures and patch-up jobs while families and educators pay the price.”
