Optional charges and donations

What is an Optional Charge?

An Optional Charge is a request for a payment for specific additional features. Parents can choose whether or not to pay Optional Charges depending on whether they want the additional feature. ECE services cannot request parents pay an Optional Charge for aspects that are required by regulation.

When an ECE service requests this type of payment from a parent, they must specify the extra activities or items covered by the Optional Charge. Such activities may include weekly visits by a dance or music teacher, or excursions to the zoo. Items may include things parents could provide themselves, such as food, sunscreen and sunhats.

Are there areas of provision that ECE services cannot include as an Optional Charge?

Yes. ECE services cannot request an Optional Charge for any of the following:

• aspects of ECE provision required by regulation
• (until 1 February 2011) having a higher proportion of ECE qualified and registered teachers than is required by regulation (this is because the cost of qualified and registered teachers is recognised in the ECE Funding Subsidy rates through the Staff Hour Count), or
• general contributions towards the cost of high quality education and care provided by the service, or due to the service being well regarded and popular.

Can services that are funded for having more than 80% registered teachers charge Optional Charges for doing so?

From 1 February 2011 teacher-led early childhood services can also ask parents for ‘Optional Charges’ within their 20 Hours ECE entitlement for the service having more than 80% registered teachers This is consistent with the ability for an ECE service to request Optional Charges for exceeding ratio requirements.

A service can ask parents to pay an Optional Charge for having more than 80% registered teachers if its most recent Ministry of Education payment advice notice advises that the service falls into the 80%+ funding band.  Once a payment advice notice advises a service that it has fallen into a lower funding band (e.g. 50-79%) the service can no longer ask parents to pay Optional Charges for having more than 80% registered teachers.  The next opportunity to change this will be the next time a payment advice notice is received.

This means ECE services will be able to ask parents to make an additional payment to contribute to the cost of registered teachers, if they have more than 80% registered teachers.  This can be requested during the usual 20 Hours ECE, but will only be an Optional Charge.

This means that parents will be able to decide whether they are prepared to pay for qualified and registered teachers beyond the 80% requirement.

How do ECE services record a parent’s agreement to pay an Optional Charge?

ECE services must record a parent’s agreement to pay an Optional Charge on the Enrolment Agreement Form and this must be signed and dated by the parent.

The Ministry’s sample Enrolment Agreement Form contains all the required information that must be included if an ECE service has an Optional Charge. The Enrolment Agreement Form must include:

• advice to parents that payment of the Optional Charge is voluntary and there is no penalty for non-payment, but if parents agree to pay an Optional Charge the payment can be enforced or the additional features paid for by the Optional Charge withdrawn
• a list of the specific items covered by the Optional Charge, and
• information on the duration of the Optional Charge agreement and how the parent can change their agreement to pay an Optional Charge.

What can ECE services do if parents do not agree to pay Optional Charges?

Optional Charges are not compulsory. Agreement to pay an Optional Charge cannot be a condition of initial or continued enrolment.

If a parent does not agree to pay Optional Charges, ECE services can withhold the additional features paid for by the Optional Charge. By agreeing not to pay parents are agreeing to not have access to the additional activities or items.

Some ECE services might not stop children from getting the additional activities or items, but they are within their rights to exclude a child from these extras.

Do ECE services have to give parents the chance to change their minds about Optional Charges? How often?

The Optional Charges agreement between ECE services and parents must include how long the agreement will last, and what the rules are about making changes to the agreement. ECE services need to provide ‘reasonable opportunities’ for parents to change their minds: what is reasonable will differ, but in most cases parents should have at least one opportunity to opt out. Either parents or the ECE service may initiate a change to the agreement, but both must agree on the changes.

ECE services cannot make agreement to pay an Optional Charge a condition of initial or continued enrolment.

What can ECE services do if parents stop paying Optional Charges?

If a parent has agreed to pay an Optional Charge, and has stopped paying without following the ECE service’s review process, the ECE service can enforce the payment just as it would enforce a fee normally, or it can withdraw the additional activities or items paid for by the Optional Charge.

If parents stop paying Optional Charges it would be reasonable to give parents the opportunity to change their minds about receiving the additional features covered by the charge. Parents must continue to pay the Optional Charge until both parties agree to changes.

Do Optional Charges need to be approved by the Ministry?

ECE services can set their own Optional Charges, and its good practice for ECE services to talk with parents and check their willingness to pay. The Ministry will only become involved if a parent is charged fees for 20 Hours ECE, the Optional Charge is for activities or items required by regulation, or if parents are compelled to pay Optional Charges that they have not agreed to in writing.

Can ECE services still request donations? What is a donation?

ECE services can ask for a donation from parents, whether their children access 20 Hours ECE or not. A donation is a voluntary contribution. There is no obligation to contribute and no enforcement of payment. Parents do not have to pay donations, but may wish to do so to support their ECE service.