Hunter MP Joel Fitzgibbon told the Mercury last week that Maitland’s family day care services could be forced to either close their doors or raise fees because of $157 million budget cuts. 

Responding to the MP’s ­comments, Ms Ley said budget ­documents showed the program had blown out to $98.7 million under the previous two Labor budgets. 

She said a 2012 Auditor-General report recommended CSP eligibility guidelines be reviewed. 

“It is important to note the Community Support Program is not a fee assistance program, is not paid to educators or parents, and does not alter the amount or ability of parents using approved services to claim the Child Care Benefit or Child Care Rebate,” Ms Ley said. 

“The intention of the CSP is to provide operational support to ensure the availability of affordable, high-quality childcare in areas where services would otherwise be unviable, such as in disadvantaged or regional and remote communities.”

Maitland Five Star Family Day Care Metford assistant manager Jenelle Ycas said last week that the centre stood to lose $330,000 in ­federal funding. 

She said the $34.50 shortfall per child would be passed on to parents. 

“These changes, which come into effect from July 1, 2015, simply bring family day cares’ eligibility for the CSP into line with other types of childcare, such as long day care and outside school hours care,” Ms Ley said.

“This ensures taxpayer funding is better targeted towards those who need it most.” 

She said to help with the ­transition, the government would provide family day care services with extra support, including business ­workshops and advice about key business fundamentals such as financial management, change management and business planning.