Proposal to charge childcare by the hour

Education Minister Simon Birmingham is proposing a pay by the hour scheme to help reduce the cost of childcare for families

(AAP) Source: AAP

Families could pay for child care by the hour under a proposed change by the federal government.

Education Minister Simon Birmingham has told The Australian it's unacceptable that families who routinely need and use only four, six or eight hours of care are charged for 10 or 12 hours.

The government is hoping the hourly charge could start in 2017 but needs to get the legislation through parliament first.

Crosssbench senator David Leyonhjelm is open to the change.

"This is a small step in the right direction," he told reporters

Independent senator Nick Xenophon stressed it was an important issue that needed attention.

"Child care is one of the big barbecue stoppers," he said.