A BENDIGO childcare provider has welcomed the federal government's push to end the free childcare scheme.
Federal Minister for Education Dan Tehan said the government would consider reverting back to the original funding model from June 28.
Jenny's Early Learning Centre managing director Darren Reid said a return to the previous paid childcare model would benefit the sector.
"To be honest, it's really positive for the industry," he said. "It will make sure that the childcare operators are sustainable long term and can operate long term.
"The other thing to keep in mind is that for those families that have been financially affected, there will still be the additional childcare subsidy in place.
"So if we go back to the previous model there will still be really good support measures for those going through financial hardships.
"We have been reaching out to those families in anticipation of the changes to make sure they have everything in place.
"I really encourage families to speak to the centre director to find out how the service can support them."
Mr Reid said the centres had already seen a significant increase in attendance numbers in recent weeks.
He expected the service would be operating at full capacity from mid-June.
"We believe that the messaging from government around easing restrictions has correlated with the requirement of more care," Mr Reid said.
"When people feel more comfortable to go back to work, they feel more comfortable to use childcare facilities again."
But Federal Member for Bendigo Lisa Chesters said reverting back to the previous funding model would hit many families hard.
"I am very concerned that the government is talking about winding down the scheme before winding down JobKeeper," she said.
"People who are on the fixed income of JobKeeper, which is $1500 a fortnight, will not have the extra money to pay fees.
"I have spoken to centres - they are very worried about costs. They say not being able to charge fees is creating problems.
"However, the solution is not about allowing centres to charge fees. It should be about the government properly funding free childcare and investing more in the sector."
Ms Chesters said council run centres - including the Helen Jessen and Annie Galvin Early Learning Centres in Bendigo - were at a greater risk.
She said the centres had been short-changed by the federal government after they were deemed ineligible for the JobKeeper program.
"The council has had to dip into rate payer funding to keep these centres running," Ms Chesters said.
"That is simply unfair. The council applied for an exceptional circumstances grant from the government but were rejected.
"I'm calling on the government to properly fund the early learning sector and to invest more."
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