From vision to viability: Funding requirements for effective Early Childhood Hubs
This report explores viable models and cost structures for Early Childhood Hubs that meet the needs of children, families and communities, while ensuring economic sustainability.
Early Childhood Hubs (ECHs) are places where children and families can access a range of services such as early learning programs, family support, health, allied health and social services. They can also include places for families to meet and socialise in an informal setting.
Evidence demonstrates that ECH models play a pivotal role in supporting children and families to thrive, especially those experiencing socioeconomic disadvantage. Over the past five years, SVA and our partners have conducted extensive research into ECHs: their potential, current landscape and unmet need. However, detailed cost analysis of the components required to operate an ECH, including services, infrastructure, and the integration ‘glue’ has remained limited.
This research addresses that gap by exploring viable models and cost structures for ECHs that meet the needs of children, families and communities, while ensuring economic sustainability. The findings aim to inform future funding models that enable scalable, sustainable, and responsive ECHs.
Engagement with a diverse set of ECH providers — including Aboriginal and Torres Strait Islander Community Controlled Organisations (ACCOs), non-governmental organisations, government-run models, and collaborative partnerships — revealed differing requirements and cost considerations across core ECH components. The report unpacks the diverse income sources, costing components of ECHs, and the challenges and benefits of different financial scenarios. Interview participants contributed critical perspectives that enriched both the qualitative and quantitative findings.
A ‘building block’ approach was developed to estimate the cost of various ECH components. This framework enables ECH providers to generate indicative costings tailored to specific community needs, community size, infrastructure and service requirements, location-based factors such as urban, regional or rural settings, and price indexation. The report also provides further detail on in-house and partnered delivery models and identifies respective conditions for success.
The report outlines key findings and recommendations for developing sustainable, impactful and effective ECHs. It highlights the need to shift from short-term fragmented, multi-channel funding to secure, government backed, long-term funding that recognises the ‘glue’ and early childhood education and care (ECEC) as essential components of the ECH model.
Read the summary briefWatch the webinar discussion
This report has been prepared by Social Ventures Australia Limited AFSL: 428 865 (ACN 100 487 572) (SVA). The information contained in this model should be considered as general information only and does not purport to contain all the information that a recipient may desire. It does not intend or purport to provide financial or commercial advice. SVA does not provide financial advice and recipients should seek their own independent financial advice. Further, statements in this report are not intended to be tax advice and investors should consult a professional tax adviser, if necessary, for tax advice. Statements in this report on past performance should not be treated as an indication of future performance. To the extent permitted by law, SVA and their respective related bodies corporate, officers, employees and advisors do not make any representation or warranty as to, or take responsibility for the accuracy, reliability or completeness of any information in this report nor do they give any assurance that the results, performance, valuations or achievements expressed or implied by the forward-looking statements contained in this report will occur. Recipients are cautioned not to place undue reliance on such information. Whilst this report has been prepared by SVA in good faith and with due care, to the extent permitted by law, SVA and their respective related bodies corporate, officers, advisors and employees disclaim all liability that may otherwise arise due to any information contained in this report being inaccurate or due to information being omitted from this document, whether by way of negligence or otherwise.
