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Why parents are turning to Granny Nannies instead of formal daycare

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The Australian Institute of Family Studies (AIFS) has released a new report today that shows more parents are turning to grandparents instead of investing in long day care centres.

The report, based on the Australian Bureau of Statistics (ABS) Child Care Surveys conducted between 1984 and 2011, says 40 per cent of babies and toddlers are now being cared for by their grandparents while their parents go to work.

The main reasons for using grandparents as carers cited by parents in the report were cost factors and trust.

The report states, "Many families have a preference for informal care, in part because it means their children can be cared for by someone they already know, and in a home setting. Another attraction of informal care is that it often is cheaper than formal care, or even free, when provided by family members."

With the cost of childcare accounting for a fifth of the average family’s budget, according to a recent CommBank study, it's no surprise parents turn to family members for help.

However, there is some concern that grandparents are being taken for granted. The CEO of Seniors Australia, Michael O'Neill, said that grandparents have their own lives to lead and their families need to be respectful of their needs and expectations.

Should at-home carers be subsidised?

In a childcare review currently being undertaken by the Productivity Commission, the federal government is investigating a "cash for care" plan in a bid to solve the nation's daycare shortage. Under the plan, families who care for their child at home would receive a benefit.

Channel Seven's Sunrise programme also raised the question yesterday, tweeting to their followers "Should grandparents be paid to look after their grandchildren?" Responses varied from a blunt "No" to "yes! If they don't take money, pay them with holidays and gifts and fine dining and fine wines".

Tell us what you think of the Productivity Commission's proposed "cash for care" plan.

Related gallery: Ten insider tips about childcare

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