Advance notice needed

Letter from Lee Kim Hua

Director, Family Services Division

Ministry of Community Development,Youth and Sports

I REFER to “Why the rise in fees” (Sept 11) by Mr Alan Tan, on concerns
regarding childcare centres raising their fees following the announced increase in
childcare subsidy.

The Ministry of Community Development, Youth and Sports requires all childcare
centres to notify parents and the Ministry at least two months in advance should
they wish to increase their fees.

Childcare centres are business entities which need to remain viable. The rising
cost of living,as well as higher requirements for teacher qualifications in the pre-
school sector, may lead to higher costs.

We strongly urge operators to exercise restraint and to keep their services

affordable for parents. Operators should bear in mind increased competition in
the sector given that a further 200 new child care centres will be established over
the next five years. Parents will select child care centres that best meet their
expectations in the most cost effective manner.

We thank Mr Tan for his feedback. The Ministry will continue to monitor the
situation and review policies on child care centres where necessary.
Why the rise in fees?

MY WIFE and I send our two toddlers to a childcare centre as my wife has
returned to work after two years.

We are glad that the Government is placing great emphasis on the quality,
affordability and accessibility of centre-based childcare and has taken steps to
provide recurrent funding and scholarships and bursaries to eligible centres.

However, we are disappointed to be informed by our children’s care centre that it

is increasing the fees by $50 per child per month. The centre said the increase
was necessary to attract and retain qualified and committed teachers and to
cover rising operational costs. It had increased fees in the first quarter of this
year for the same reasons.

Based on the fact that the additional childcare subsidy granted to parents is $150,
the increase of $50 is equivalent to a 33-per-cent “cut” from what parents have
been given to help defray costs of raising a child.

However, the Ministry of Community Affairs, Youth and Sports (MCYS) has
clearly indicated that a recurrent funding for eligible childcare centres will be
introduced and this funding is specifically to help such centres recruit, develop
and retain qualified teachers.

What then, is the basis for centres increasing their fees? Other parents I spoke to
told me that the centres their kids attend are not waiting for the MCYS funding
but are instead proceeding to also increase their fees.

I cannot help but suspect that some childcare centres are “taking advantage” of
the subsidies granted to parents so that they can have a share of that as well as
enjoy the MCYS funding.

Are childcare centres allowed to revise their fees as and when they deem fit? Do
they need to seek approval from MCYS and justify their reason for doing so?

How can parents be “protected” against such seemingly arbitrary action by

childcare centres?

Alan Tan