Budget shines spotlight on sector’s struggles

Search Newsroom Posts
Daycare toddler is banging a drum - listen to me!

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

Already subscribed?
ECE Newsroom

NZ’s own specialist ECE newsroom. 
Access national and local stories, in-depth analysis, & original commentaries.  

Membership Support for Teachers & Educators

(Comes with free Newsroom and Research access)

Membership Support for ECE Service Owners, Managers, & Community Organisations

(Comes with free Newsroom and Research access)

Researchers & Tertiary Education Libraries

Full access to over 25 years of ECE academic research articles – NZIRECE Journal.
Plus, guidance and resources on doing and publishing research

Has this been useful?  Give us your feedback.

You are welcome to add a link to this page on your website. Copyright belongs to the OECE so please do not copy any content without our written permission.

Information provided is of a general nature. It is provided ‘as is’, and we accept no liability for its accuracy or completeness. See our Terms and Conditions.

Related Posts

teacher wages, pay scales, in childcare and early childhood education

What ECE Teachers and Workers Earn: Pay, Benefits and Conditions

Anyone thinking about getting a job in ECE working in ECE or thinking about moving to a different service will find clear, practical information in this article about pay rates, employment conditions, and what to expect in different roles. It explains everything from starting salaries and pay‑step calculations to workplace rights, benefits, and how to recognise a supportive, professional environment.

Read More »
The Office of ECE

Share This Information

Table of Contents

Table of Contents

The Office of ECE Login

Take Action!

Help spread this vital ECE information, join our free social and email groups and become a member of OECE.

pay parity funding policy

1. Share This Information

2. Follow Our Social Pages

3. Get Regular Updates

Sign up to our free newsletters.

4. Become a Member