Labor Government cuts funding for preschool children across NSW

Robert Dwyer • 14 October 2026

Labor Government cuts funding for preschool children across NSW

The Labor Government is facing criticism over changes to preschool funding with concerns growing that reductions in support for early childhood education providers could impact services, educators and families across New South Wales.

 

The reality behind the Government's early childhood funding announcements has been called into question with members of the Early Learning & Care Council of Australia identifying a reported $150 million reduction in funding for long day care preschool programs. At the same time, the Independent Education Union has warned that Labor's funding model could threaten the viability of not-for-profit community preschools.

 

Member for Port Macquarie, Robert Dwyer said families and local providers have been left in the dark about the future of preschool funding, while concerns raised across the sector continue to go unanswered.

 

"Service providers, educators and parent committees have repeatedly called for funding certainty so they can plan with confidence for the future," Mr Dwyer said.

 

"Instead of offering that certainty, the Minister has ignored their concerns, leaving families, services and children to bear the consequences."

 

Mr Dwyer said quality preschool education, whether delivered through dedicated community preschools or long day care centres, relies on adequate and transparent funding to maintain high standards of learning and support children's development and school readiness.

 

"Without adequate funding, local services face increasing operational pressures. They are left with difficult choices: absorb rising costs, reduce investment in educational programs, or pass higher fees on to parents."

 

Mr Dwyer said families should not be forced to pay more because of government funding cuts.

 

"Our children's early education should never be compromised by funding reductions, and local families should not be left to pick up the tab for government shortfalls," he said.

 

Shadow Minister for Early Education Felicity Wilson said Labor was putting at risk the progress NSW has made in expanding access to quality learning in the years before school.

 

"Quality preschool does not happen by accident. Funding supports educators, professional development, mentoring, programming and educational resources that give children the best possible start to school," Ms Wilson said.

 

"The Minister is missing in action while services plead for certainty and a sustainable funding model. This is a failure that puts pressure on families, services and the quality early education our children deserve."

 

Media Contact: Terry Sara 6584 0977 or 0409 834 648

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