Budget shines spotlight on sector’s struggles
IN THE MEDIA: May 30, 2025.
The OECE has expressed disappointment in the 2025 Budget in stories for The New Zealand Herald, The Post and The Press this week.
Chief advisor Dr Sarah Alexander also raised the alarm about the incoming pay parity changes – and their potential to harm Aotearoa’s ability to attract new talent into the sector – in an article in The Post
After Finance Minister Nicola Willis announced that the Government had approved a cost adjustment of just 0.5% to base funding and subsidies for ECE services, the Office of Early Childhood Education’s chief advisor Dr Sarah Alexander spoke out about her deep disappointment at the decision.
The New Zealand Herald quoted her in its coverage of how the Budget would affect the education system: “No money has been allocated to help fix the most pressing problems facing the sector: low wages, ratios of adults to children, and high fees for whānau.”
Alexander made similar comments in a post-Budget interview with The Press (which also ran in The Waikato Times): “The main sources of revenue for ECE are parent fees, government funding and donations. So, if one is lower than needed, ie the government funding, ECE business operators will say ‘how will we make up the shortfall – our only other option is to go to parents’.”
In a follow up story, about whether the lack of investment in the sector could lead to more services closing, The Press’ senior education reporter Cate Mackintosh referenced an OECE analysis published last week showing that 87 centres closed while 50 opened in 2024, resulting in a loss 1644 spaces in the sector.
“[The cost adjustment] is disappointing and it is going to make it a lot harder for some services but typically, instead of closing, they will find a way to make it work by increasing fees, by cutting corners – which can put children at risk,” Alexander told the publication.
Alexander also highlighted in a story for The Post how changes to pay parity, announced on Wednesday, that will prevent ECE services that have opted-in to paying qualified teachers parity or extended parity rates from getting extra funding if they choose to lift salaries.
“This could effectively equate to a pay freeze for many teachers employed at more than 1000 ECE services across Aotearoa because the services providers they work for won’t be able to access increased funding to improve pay for staff,” she said
