Australia’s ageing population is projected to place significant strain on our aged care sector in the coming years, but introducing free childcare could help address expected workforce shortages. 

By 2031, the number of Australians aged over 65 is expected to increase by more than 16%. The Committee for Economic Development of Australia (CEDA) has forecast a shortfall of at least 110,000 aged care workers by 2035, with that gap potentially growing by over 360% by 2050. 

This growing workforce crisis requires urgent attention, with workforce shortages predicted should the sector continue its current path. Creative solutions, such as free or subsidised childcare for those working in the aged care sector, are needed to address these issues. 

Removing barriers to a (predominantly female) aged care workforce  

According to the Australian Bureau of Statistics, caring for children remains the largest barrier for women in the labour force. The Department of Health and Aged Care’s 2024 Aged Care Worker Survey further found that over 87% of the aged care workforce were women, with many having left a previous role because of carer responsibilities.  

It stands to reason that the ability to access free or subsidised childcare could be a key factor in improving workforce participation in aged care. 

According to the Australia Competition & Consumer Commission, childcare in Australia is less affordable compared to most other OECD countries. This is compounded by the cost of living. 

Reducing the cost of childcare, particularly in a female-dominated workforce, could therefore support a more stable workforce by alleviating financial pressure. 

It’s already working in the UK 

The United Kingdom government has reported strong results from the introduction of its Free Childcare for Working Parents scheme. The scheme provides up to 30 hours of free childcare weekly for children aged nine months to four years.  

While the scheme took years to develop and includes eligibility requirements, reported benefits included improved family finances, better work/life balance, ability to increase working hours, and greater childcare provider confidence. 

UK Chancellor Rachel Reeves describes her country’s scheme as making life “a bit easier for working parents.” 

“For too long, parents, particularly mothers, have been held back by the sky-high cost of childcare,” Reeves said.  

“[F]amilies with children as young as nine months can now access 30 hours of free childcare a week. This is good news for parents… [a]nd it’s good news for our economy.” 

During the expansion of the free childcare scheme, the UK government staggered the rollout to assist childcare providers to prepare for the expected increase in demand. 

A national recruitment strategy and cash incentive was also implemented to encourage growth in the workforce.