ECE changes - information for parents

The Government is expecting to spend $1.3 billion on early childhood education in 2010/11, up $107 million on 2009/10 expenditure. The taxpayer’s contribution in this sector has risen from $428 million in 2004/05 to $1.17 billion in 2009/10.

In a tight fiscal environment, this level of growth in spending is unsustainable, and it is still not reaching some of the children who need it most.

Generally, 95% of all new entrants have had some ECE when they start school, but the figure is much lower for Māori and Pasifika children (91% and 85% respectively). This figure varies according to the region. For example, in Counties Manukau last year, one in four Māori children starting school had not participated in ECE. Children entering lower-decile schools are also much less likely to have participated in ECE than their peers entering higher-decile schools.

Budget 2010 for ECE is focussed on targeting spending where it is needed most, to achieve Government’s goal of increasing opportunities for all children to participate in quality early childhood education.

What are the key changes for ECE in this year’s Budget?

• $91.8 million will be invested over four years to increase ECE participation.
• $46 million will be invested over four years in a 2.4% increase to non-teacher costs in the ECE funding rates.
• $34.9 million will be invested over four years to support the recognition of primary and overseas ECE qualified teachers, and to support ECE services to meet teacher registration targets.
• From February 2011, the funding incentives for ECE services to have more than 80% registered teachers on their staff will be removed. This aligns the funding with the registered teacher targets for 2012 and will contribute to net ECE savings of nearly $280 million over four years.

What are the changes to 20 Hours ECE?

The Government is retaining and expanding the 20 Hours ECE policy. From 1 July 2010, all playcentres and kohanga reo can offer 20 Hours ECE, and 5-year-olds will be eligible.

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Which children will receive the $91.8 million extra participation support?

Most of this support will be targeted to areas where there are large groups of non-participating children, who are statistically most likely to be Māori, Pasifika, or from lower socio economic status backgrounds.

There will also be some funding for projects in areas that have smaller groups of target children, where the projects meet participation or other government priorities, such as ensuring access to quality education for rural children or supporting ECE through languages other than English.

What are the changes to teacher registration?

From 1 November 2010, registered primary teachers can be included in ECE services’ funding claims. The New Zealand Qualifications Authority (NZQA) is also expanding the recognition of some overseas ECE qualifications.

What are ECE funding rates and how do they work?

The Ministry of Education provides substantial funding to ECE services. These funding rates reflect the costs of operating different types of ECE service. This includes operating, capital, property operating and non-teaching staff costs.

The rates also include teaching salary costs in teacher-led ECE services, as ECE services that employ higher proportions of qualified and registered teachers face higher salary costs.

For more information see the Funding factsheet.

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How will the funding changes affect parents?

At least 2,300 services with 86,400 enrolments will not be affected by funding rate changes. This includes all sessional kindergartens, most kōhanga reo, playcentres and home-based services.

As at May 2010, around 2,000 services were funded for 80% or more registered teachers. 92,800 children were enrolled in these services. 760 out of the 2000 services currently receive funding for 100% registered teachers.

The Ministry of Education recommends parents speak to their individual ECE service.

Additional support for families: Childcare Subsidy

Work and Income can provide financial help for childcare costs through the Childcare Subsidy. The Childcare Subsidy is available for up to 9 hours a week where the parent is not working and up to 50 hours a week where the parent is working or training. A person may get a Childcare Subsidy if they:

• are the main carer of a dependent child
• do not have a partner who can provide childcare
• are a New Zealand citizen or permanent resident
• normally live in New Zealand and intend to stay here.

It also depends on how much you and your spouse or partner earn.

The child must be:

• under five years old (or under six years if you get a Child Disability Allowance for them)
• attending an early childhood programme for three or more hours a week.

If you are claiming 20 Hours ECE, you can not get Childcare Subsidy for those hours. There is more information about this payment at www.workandincome.govt.nz.

ECE services still cannot charge any fees for 20 Hours ECE. More information about 20 Hours ECE can be found at www.minedu.govt.nz/parents.