Budget 2024 ECE spending and cuts
May 30, 2024.
Most of us are unlikely to remember what was announced as part of the 2023 Budget. To jog your memory, the 2023 Budget promised parents that 20-Hours ECE would be made ‘free’ and extended to 2-year-olds. It also promised that all teacher-led centres who opted into full pay parity would receive the same funding as kindergartens and be required to pay their teachers on the full kindergarten pay scale.
Next year most of us probably will have forgotten what was announced today, but right now we are all very interested in Budget 2024.
Budget 2024
ECE gets crumbs from the Education Table. Government’s spending priorities are not on the early years of education. Vote Education spending is primarily targeting schools. For example, there are $20,000 packages in the Better Jobs Programme going into Primary, Intermediate and Secondary schools which excludes ECE.
The government has set aside $1,239m ECE teacher supply supports but not until 2027/8.
Pay parity funding allocations of the previous government have not been removed/ reprioritised. But it does not appear that there is any new allocation of funding for pay parity to match that of kindergartens and for pay rates in education and care centres to keep up with the rising rates of teacher pay in schools and kindergartens.
FamilyBoost childcare tax rebates of up to $150 per fortnight for eligible families are confirmed. This is no surprise as it was announced earlier this year – details are available here.
Free lunches and morning teas have been promised to up to 10,000 two-to-five-year-olds in low-equity not-for-profit ECE services, with funding for this ($8 million over 2 years) coming from savings made in cutbacks to the school food programme.
I am pleased to announce there will be a new targeted programme to provide food to 10,000 two-to-five-year-olds who attend low-equity, not-for-profit, community-based early learning services, funded using the cost savings found in the lunch programme.
Minister Seymour, press release 8 May 2024
| Last Budget 2023/24 Final Budgeted $000 | This Budget 2024/25 Budget $000 | |
| Subsidies paid to licensed ECE services | 2,596,372 | 2,794,00 |
| Cost adjustment component for ECE services | 26,219 (not final) | 54,167 |
| Support for ECE providers who need help | 12,122 | 7,500 |
| Delivery of specific programmes and providing advice and support that enhances the role of parents/caregivers in the development of their children. | 8,974 | 8,974 |
| Lunches for children in low equity ECE centres. The Budget appropriation figure amount shown in the budget document is for ECE and schools combined. Hon Seymour has earlier committed to spending $4m on ECE lunches per year ($8m over 2 years) | ||
| Ngā Puna Reo o Aotearoa – Ongoing Funding | 407 | 408 |
| Drawdown of Funding for Kōhanga Reo Kaimahi Pay Scheme | 9,000 | 10,544 |
| Drawdown of Funding to meet the costs of the Kindergarten Collective Bargaining Settlements | 107,167 | 182,235 |
| Playcentre sustainable funding – this looks like it is a new Budget appropriation | – | 1,903 |
Spending Cuts
We are currently trying to find out more information regarding cuts.
- It looks like the Targeted Assistance for Participation Funding has gone i.e. been reprioritised. $2,640m to support ECE providers in 2024/5 and future budgeted amounts have been removed.
- It looks like the Ngā Puna Reo o Aotearoa funding for professional development and support has gone
Appropriations from the 2023 Budget initiative to make 20-Hours Early Childhood Education free and extend the funding to 2-year-old children has been reversed.
The forecast for the take-up of Early Childhood Education by children/families has been revised resulting in a $3.776 million decrease (or saving).
