Early Childhood Education Funding Review — Questions, Concerns, and How to Respond
ECE NOTICE/OPINION — November 4, 2025
In June 2025, Minister David Seymour announced the formation of a Ministerial Advisory Group (MAG) to redesign the early childhood education (ECE) funding system. The Government allocated $3.856 million in the latest budget to cover the MAG’s establishment and operating costs.
The Ministry of Education has confirmed that submissions are now being accepted and regional hui will be held.
Auckland – 5 November 2025, 4pm to 5:30pm
Christchurch – 12 November 2025, 4:30pm to 6:00pm
Hamilton – 27 November 2025, 5pm to 6:30pm
Wellington – 2 December 2025
Dunedin – 4 December 2025
Whangarei – 5 December 2025, 4pm to 5:30pm
Make a submission or register to attend a hui
What Might you Request in your Submission
- Increase part‑day funding rates to match full‑day rates so part‑day services and the children who use them are not penalised
- Make funding equitable by:
- Basing rates on service size so small, independent services are not disadvantaged by economies of scale.
- Ensuring funding does not discriminate by service type, setting, or philosophy. Playcentres, Kōhanga Reo, and home-based ECEs deliver early childhood education as do education and care centres, and should be treated equitably with kindergartens.
- Enshrine pay parity in law between ECE teachers and school teachers so it remains a binding commitment regardless of who’s in government.
- Improve 20-Hours ECE rules so parents can reliably access up to 20 hours at no cost and any additional fees are transparently separated. Inconsistent practice creates unfair competition and financial strain on family‑focused services.
- Mandate financial transparency by requiring that every licensed service (private or community) publish its individual financial accounts, rather than allowing aggregated reporting across multiple services or activities.
Will the review matter?
The MAG’s recommendations will only influence policy if ACT remains part of the next governing coalition. If ACT is not in government after the election, the review could be shelved as past reviews have been. If ACT stays in power, expect vigorous sector debate; previous funding reviews have drawn strong responses from providers, parents and community groups.
Scope, limitations and transparency concerns
- No additional funding has been allocated. Any redesign will involve redistributing existing funds to meet the stated purpose of ECE supporting parent labour market participation, meaning some services may benefit while others lose out.
- The review focuses solely on funding design and does not address regulatory settings such as staff-child ratios, group sizes, or statutory teacher pay.
- Without regulatory levers, funding changes alone are unlikely to guarantee improved child outcomes or sustained quality.
- As of November, the MAG’s consultation paper had not been released, raising concerns about transparency and whether sector, teacher, and parent feedback will be genuinely considered.
Timeline and likely impact
- A final MAG report is expected by September 2026.
- But, implementation depends on the election outcome and Cabinet decisions, making substantive change unlikely before 2027.
- Rewriting the funding handbook and allowing services time to adjust staffing, fees, and enrolments will be essential to avoid disruption.
- Providers facing funding cuts may need time to restructure or sell—poor transition planning could harm children, families, and small providers.
MAG membership and potential conflicts
Of the seven MAG members appointed by the Minister:
- Four represent ECE service providers.
- Three have direct ties to the Early Childhood Council (ECC), which advocates for childcare business interests.
This composition risks narrowing the review’s perspective and marginalising voices from teachers, parents, small community-based centres, kaupapa Māori services, Playcentres, home-based providers, and early intervention services. Those outside the ECC may be hesitant to share financial information or sector insights.
All MAG members are paid for their time, and their expenses are covered by taxpayers regardless of what other salaries or money they may be earning while doing MAG business.
The bottom line
Unless ACT is re-elected and retains influence over the agenda, this review may result in limited lasting change. If ACT remains in power, expect recommendations that favour large-scale, long-day models and market efficiencies—with uncertain effects on service quality.
For now, stay informed and consider making a submission if these issues affect you or your community.
MAG Members: Who’s Advising the ECE Funding Review?
- Linda Meade (Chair) – Co-owner of Daisies Daycare Ltd and Managing Director of Kalimena Advisory, a consultancy focused on financial optimisation. Daisies joined the Early Childhood Council (ECC) in 2023.
- Kelly Seaburg – Director of New Shoots Children’s Centres, which ranked among the top 10 recipients of government funding for early childhood education providers in 2024 and received the highest average funding per service in that group. Seaburg lobbied Minister Seymour for reduced regulation and dismissed concerns about non-compliance – despite New Shoots having a documented history of compliance issues.
- Melissa Glew – Chief Financial Officer at the Auckland Kindergarten Association.
- Dr Kane Meissel – Associate Professor of Educational Psychology at the University of Auckland; no known publications specific to early childhood education.
- Dr Michael Fletcher – Adjunct Research Fellow at Victoria University of Wellington and former policy advisor at the Ministry of Social Development.
- Kylie Eagle – Chief People Officer at Fletcher Building.
- Simon Laube – Chief Executive of the ECC. He has consistently advocated for reduced regulation and lobbied for ECE licensing responsibilities to be removed from the Ministry of Education. Laube also initiated ECC-funded legal action to challenge the pay-parity scheme. While previously employed at the Ministry of Education, he co-authored advice recommending that salary funding increases be restricted to Kindergarten Associations as a cost-control measure – a recommendation accepted by Cabinet, resulting at the time in education and care centres no longer receiving funding adjustments for salary increases.
We encourage you to stay informed, share your perspective, and join the conversation on the Funding Review – post your thoughts and comments below.
