Statement from Secretary for Education

ECE funding error

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On 1 February 2008, the salary component of some ECE funding rates was adjusted by 4%, to reflect teacher salary increases. A further increase of 4% was due on 1 July 2008.

A mistake was made in the 1 July 2008 adjustment. The increase was 8% instead of the 4% that services should have received.

I want to assure the sector that:

• The Ministry will not seek to reclaim the additional money and we will not cut current funding rates as a result of the mistake.
• The mistake does not apply to home-based or parent-led services.
• We are completing a review of the funding rates for all ECE services for the past five years, and it appears that this mistake was a one-off.
• A full internal audit investigation is being finalised to identify how the mistake happened and to make sure that we can prevent it happening again.

I recognise that this is a serious mistake with implications for Government spending, ECE providers, and for the credibility of the Ministry of Education.

The Ministry takes full responsibility for this mistake, and I apologise to the sector for any inconvenience this may cause.

Naku noa

Karen Sewell
Secretary for Education