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The childcare bill for Christchurch mum Lisa Raxworthy will triple when her St Martin's ABC childcare centre introduces the Government's 20 hours free scheme.
Raxworthy's two children, Gianna, 18 months, and Mario, three, cost a total of $19.20 a week to keep in full-time (40 hours) care at the St Martin's ABC centre in Christchurch.
The bill is made cheap by a childcare subsidy from the Government of $3.51 per hour on all 40 hours of care for both children.
Under the new 20 hours free policy, which will start at ABC on August 4, the subsidy for half of Mario's care will be denied. ABC are still charging $120 per week for the 20 hours of "free" care and the bill for Gianna has gone up by $15 per week so the Raxworthys will be worse off.
With the cuts to the childcare subsidy combined with the hike in fees, Lisa and her husband, Jason, will have to find an extra $56.70 per week to keep their children with ABC.
"I don't know where to find $100 a fortnight," Raxworthy said.
"Our budget was going fine and prices have been going up so we've pulled back on the food, but now we're going to have to be living off rice, basically."
Jason and Lisa Raxworthy earn less than $80,000 a year between them and they have a third child at school.
Raxworthy said 20 hours free was a "farce".
Fiona Stewart, another mother with children at the centre, said she would be paying an additional $20 per fortnight to keep her two children in care.
"Those on higher incomes and not receiving subsidies may benefit, but those with two or more preschoolers, struggling on lower incomes not only miss out but pay more," she said.
"Shame on ABC for hiking their fees to such an effect, and shame on the Government for crowing about their 20 hour free policies."
The decision by ABC to start offering 20 hours free was publicly revealed after inquiries by The Press last week. The international network of ABC centres has been plagued by financial difficulties this year.
The company's former head in New Zealand, Lynda Cuming, stepped down this month leaving no-one in charge of the national operation.
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A spokesman for ABC, Scott Emerson, who works for an Australian public-relations firm, said it was "regrettable if some parents do not believe the Government scheme assists them. Parents should discuss with the Government issues they may have with the structure."
- reprinted from Stuff.co.nz