Opens in a new tab

What’s in Budget 2021 for ECE?

Search Newsroom Posts
Election promises, political parties and politics of early childhood education in NZ

May 20, 2021.

Budget 2021 provided more funding for early childhood education.

  • a 1.2 percent cost adjustment to all funding rates.  The 1.2% increase will be made to the following from 1 Jan 2022: Subsidy for Under 2s, Subsidy for 2s and Over, 20 Hours ECE, and all components of Equity Funding. The increase in Targeted Funding for Disadvantage will take effect from 1 March 2022. It will be available for all services, except for home-based services on the standard rate.
  • an increase in funding to support an increase in the Ministry of Education’s minimum attestation rates for teachers in teacher-led centres, that service providers may opt into if they agree to pay these teachers defined pay steps based on the kindergarten teachers’ collective. But the Budget allocation figures show that no further pay steps will be incrementally introduced other than the perhaps first 6 pay steps for a beginning teacher that the minister suggested in his pre-budget announcement (2021/22 – approx. 29 million, 2022/23 – approx. 53 million, 2023/24 – approx. 54 million, 2024/25 – approx. 55 million).   

This Budget has made it clear that the pre-election commitment Minister Hipkins gave that Labour would be delivering pay parity for all ECE teachers is not likely to happen in this term of government.  

parliament
“Minister Robertson has handed the ECE sector the equivalent of a cheese roll – a bit of fat – that will do nothing to address the health of the sector,” said Dr Sarah Alexander. 

Dr Sarah Alexander said that while some more funding in Budget 2021 was nice, it would do little to turn around the new wave of despondency sweeping the sector because people are seeing the government continuing to let things worsen. 

The Pre-Budget 2021 ECE Sector Confidence Survey revealed that people feel the government is poorly managing ECE.  It is failing in key areas – lifting the quality of ECE, restoring 20 Hours ECE for families so its no longer just a subsidy, boosting support for parent-led services, and ensuring that all ECE teachers have pay parity with school teachers. And, the percentage of people who believe government is taking ECE in the right direction has almost halved from 30 per cent to 16 per cent compared with two years ago.

Dr Alexander points to teacher retention in ECE becoming a greater problem as a result of today’s Budget. 

“While higher pay for beginning teachers might help to attract a few more people into ECE teaching, it’s experienced teachers that we are very worried about losing.  Losing well qualified and experienced teachers has seriously negative repercussions for the quality that services can provide and children’s learning outcomes.”  

Dave Best is the director of Edubase companies “Home-Grown Kids” and “Kids at Home”. With new training requirements for educators, he would like to see the government address the significant funding gap between home-based ECE and centre-based services.   

“The phasing in of a 100% qualified Educator workforce by the end of 2024 means a higher level of education will be delivered to the child. With this quality license mandate there must be more pressure on Government for funding parity alongside centre based services, something where the funding gap is very very far apart.” 

One positive in Budget 2021 is the indexation of Childcare Assistance thresholds, so Childcare Assistance will increase every year in line with wage increases.  Adjusting thresholds could help many families to continue to qualify for instead of being shut out of receiving the WINZ childcare subsidy.

Already subscribed?
Login
ECE Newsroom

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

Subscribe Now
Membership Support for Teachers & Educators

(Comes with free Newsroom and Research access)

Become a Teacher Member
Membership Support for ECE Service Owners, Managers, & Community Organisations

(Comes with free Newsroom and Research access)

Become a Service Provider Member
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

Sign-up to a Research membership plan

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

bullying sign

Bullying Case Results in Big Payout

Teacher wins employment case. September 16, 2017. An early childhood teacher, whose life and health, along with that of her family, was thrown into turmoil…
regulator actions, compliance and licensing.

Regulatory Review Advisory Group Membership

Members of the ECE Regulatory Review Group. February 4, 2021. Wellington. Members Public nominations for members of the advisory group were not requested by the…
the importance of touch as part of caregiving and teaching children

Time Use Survey of Parents and Childcare

April 16, 2013. Women are still mainly responsible for childcare in the home, but men are also making a big contribution according to new research.…

Early Childhood Council Childcare Business Lobby Group Suing the Government

The Early Childhood Council is suing the government to increase subsidies to pay teacher wages and salaries so centres won't close, increase their fees, or…
Experiencing joy as an early childhood teacher or educator

80% Qualified Teachers Policy Scrapped – Again

Yet again the government has kicked the can of 80% early childhood education (ECE) teachers being qualified down the road.
pay parity funding ministry of education

Kindergarten Teachers This is What You Want and This is What You Get if you Vote ‘Yes’

Kindergarten Teachers' Collective Agreement (KTCA) Terms of Settlement. Before you vote on the KTCA offer agreed by NZEI and the Ministry of Education, check the…
Teacher with girls in outdoor playground feeding baby doll teacher-led centres

Practising Teacher Criteria and Code of Ethics Replaced by New Single Code

July 1, 2017. By Rachel Pratt. Teachers who have previously gained and maintained professional registration in order to practise as a qualified and registered teacher…
Children listening attentively to teacher at early childhood centre mat-time image of the Office of Early Childhood Education (OECE).

ERO’s Takeover of the Ministry’s SELO 1 Funding Contradicts Regulation Requiring Providers to Pay for Compliance Support

ERO has taken control of a key ECE support fund previously administered by the Ministry of Education, raising questions about how the funding will operate…
Early childhood education financial and money matters

Early Childhood Council Insurance Issues

Insurance Issues Influence Position on ECE Centres Opening for Children. April 23, 2020. On Sunday 19th April, a quiet news day and on the eve…
behavioural disorders

Bullying Starts in the Early Years

August 15, 2013. Children as young as three years are believed to be bullying other children according to new research from Victoria University. The study,…
The Office of ECE

Share This Information

Press Enter to see every result.

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

Membership Options