When the govt increased subsidies, childcare centers just increased their fees!

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An honorable member of the Coffee Shop Has Just Posted the Following:

WHEN THE GOVT INCREASED SUBSIDIES, CHILDCARE CENTERS JUST INCREASED THEIR FEES!

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21 Jul 2014 - 10:40am








Dear TRS,

I sent this email to the Ministry of Social and Family Development to alert them to a problem with their subsidy structure but I also wanted to share it with you so that other families might also write in to MSF so that they know it's really a big problem:

To MSF,

I would like to highlight & share my experience with childcare centre for kids. I understand that the ministry cannot control fees of private establishments but shouldn't there be some kind of restrictions & controls over their increase of fees.

Let me state u an example; back in 2004 when I sent my 1st child to childcare, fees was $450, subsidy for working mothers was $150. I paid $300/mth in cash. In 2008, everyone applaud the ministry move to increase the subsidy to $300 hence lightening our burden. We happily thought we would be paying $150/mth now but the centre sent us a memo the next day of announcement highlighting an increase in fees by $150 so the fees will now be $600 instead of $450 & after subsidy I'm still paying $300, no difference. In short, if the ministry thinks they are helping us, they are wrong! They are helping the centres & not us.

Today, 10yrs later, I'm embarking on a pre-school hunt for my 2nd child who's turning 2. Most schools offer half or full day childcare & as I'm working flexible hours I only wish to enrol my child in hourly or half day sessions, this is also because we are hoping to save some money assuming full day is definitely gonna cost more than half day. To my surprise, most centres quote me a mere $50 difference in fees. (Eg: Full Day-$950, Half Day-$900) After subsidy, I'm paying more for half day than for full day, totally ridiculous! If not it's those after subsidy, full day $650, half day $600. I don't know how the ministry does it but I totally cannot comprehend at all! If there isn't any significant difference in fees why is there a half or full subsidy? It's pretty obvious that when u decide on the subsidy rate of $150 & $300, u too thought that half day fees should be half of full day right? But u are WRONG & since this isn't the case, isn't it high time for u to make some adjustments? Let me put it simply & suggest you strike off the half day subsidy totally & just give out a standard $300 subsidy for everyone since as mention u CANNOT control the centre fees.

With this feedback, I hope the relevant authorities & departments could really brainstorm this through & make some implementations that make sense in future & benefit parents, not private establishments!

Ms Tay
TRS Contributor


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