<?xml version="1.0" encoding="ISO-8859-1"?> <docID>334983</docID> <postdate>2024-12-10 09:59:25</postdate> <headline>Young families bear the brunt of cost-of-living crisis</headline> <body><p><img class=" wp-image-334984" src="https://citynews.com.au/wp-content/uploads/2024/12/20241014145601237232-original-1-scaled.jpg" alt="" width="713" height="475" /></p> <caption>Rising childcare costs continue to hit the budgets of young families the hardest. (Bianca De Marchi/AAP PHOTOS)</caption> <p><span class="kicker-line">Adelaide</span></p> <p><strong>Expenses for families with a child aged younger than five are 27 per cent higher than in 2021, according to research that shows they are suffering most from the cost-of-living crisis.</strong></p> <p>While headline inflation has fallen to 2.8 per cent, daily out-of-pocket childcare costs are still about $50 per child, analysis by Impact Economics and Policy shows.</p> <p>This is further proof of the need for serious reform, including the $10-a-day out-of-pocket childcare fee cap the government is reportedly considering as an election promise, Minderoo Foundation's Thrive by Five campaign says.</p> <p>Under this model, a family paying $50 out-of-pocket a day with a child attending three days a week could save $120 a week, or $6240 a year.</p> <p>"Working parents continue to struggle financially while inflation starts to ease for other demographics," Minderoo Foundation's Jay Weatherill said.</p> <p>"This research is yet more evidence of the ineffectiveness of Australia's current childcare model and the Child Care Subsidy.</p> <p>"It's clearly not working, because every time the government raises the subsidy, providers raise their fees and families see little to no savings. Families with young children need it now."</p> <p>A month ago, childcare was identified as the third fastest-growing cost in the Consumer Price Index, behind insurance and tobacco.</p> <p>The cost of childcare increased 10.7 per cent in the 12 months to September.</p> <p>This is despite increased government spending on the childcare subsidy in July 2023, which has been largely cancelled out by fee rises.</p> <p>Polling by Essential in October found 71 per cent of parents would prefer a fixed-fee childcare model, in which fees were capped at $10 per day.</p> <p>"With the election just months out, all sides of politics must commit to reforming the childcare system if they're serious about financially supporting families," Mr Weatherill said.</p> <p>Since mid-2021, the living cost index increases for families with the youngest child under five (27.1 per cent) and the youngest child aged 5-14 (28 per cent) have been well above increases for employee households (21.8 per cent) and self-funded retirees (15.5 per cent).</p> </body>