Funding Campaign Faces Questions Over Fee Hikes and Accountability Gaps
IN THE MEDIA – February 28, 2026
The Early Childhood Council (ECC), which represents mainly private centres, has confirmed that a funding increase would not stop centres from raising fees for parents.
In a feature story published by The Post and carried in The Press on February 28, ECC chief executive Simon Laube said the 5.76% increase in public funding his group is campaigning for would not enable centres to lower fees. When asked whether he would support a fee cap in exchange for additional funding, he said he would not, arguing that fee caps distort the market and are “an illusion.”
Associate Education Minister David Seymour told the publication that this was not the first time he had been warned of “real doom and gloom” if funding did not increase by a certain amount. He noted that predictions of mass closures “have not come true in the past.”
Laube is a member of the Ministerial Advisory Group (MAG) on ECE funding, which is expected to report back to the Minister with recommendations later this year.
The publication also spoke with the OECE’s chief advisor, Dr Sarah Alexander, for her perspective on the group’s call for more funding. She said any increase must be backed by evidence of need and accompanied by accountability for how the money is used.
“It shouldn’t be a case of ‘throw us more funding’ without the accountability and without the evidence that it’s needed. Not every early childhood service makes the same business decisions or has the same business costs.”
Dr Alexander also noted that the removal of Network Management policy had not served the financial interests of centres – particularly in Auckland, with many similar centres struggling for enrolments, reflecting broader economic pressures and the rising cost of living.
Read the full story here: Early childhood sector at ‘breaking point’? Or just businesses under pressure?
