The ECEC Funding Modles Consultation paper is a joint release from CPD and the Front project that serves as an invitation for early childhood stakeholders to participate in the next phase of the Productivity Commission’s inquiry into Early Childhood Education and Care (ECEC). It aims to influence the Productivity Commission and the Commonwealth Government in developing and implementing a funding model that supports a high-quality, truly universal ECEC system. This model should effectively cater to the needs of children, families, and the sector.
In its draft report, the Productivity Commission has opened the floor for comments on the design and features of any prospective funding model. This presents a significant opportunity for the sector to explore various funding types. It’s a chance to deepen our understanding of different funding models, their strengths and weaknesses, and, if possible, to converge on a set of fundamental principles that should underlie the funding design.
Download the ECEC Funding Models Consultation Paper submission to read it in full.
The paper explores various funding models and their potential impact on the ECEC sector. These include subsidy-based models, which propose funding individual children based on certain criteria; reasonable cost provision models, suggesting funding based on the actual cost of providing high-quality services; block funding models, which involve allocating a set amount of funds to service providers; and outcomes-based models that link funding to specific educational and developmental outcomes for children.
Each model is analyzed for its strengths and weaknesses, with a particular emphasis on how they could affect different stakeholders, including families, children, ECEC providers, and the broader community. The paper also considers the long-term sustainability of these models and their alignment with public policy goals.
The paper does not advocate for a single model but rather presents these as options for consideration and discussion. It encourages stakeholders in the ECEC sector, including policymakers, educators, parents, and community leaders, to engage in a dialogue about the future funding of ECEC in Australia. The goal is to develop a funding model that supports high-quality, accessible, and equitable ECEC, which is crucial for the well-being and development of young children.
