Substantial decline in ECE services downgraded or closed for non-compliance with regulations, Why?

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Substantial decline in the number of ECEs downgraded or closed for non-compliance with regulations, why?

The political environment likely impacted on the Ministry of Education and its enforcement of regulations and rules in 2024. We discovered a 53% reduction in provisional licences issued to ECE services in the second half of 2024 even though t

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In August, we fact checked claims by some ECE business lobbyists that the initiative was “directly contributing to the decline in service numbers”. We analysed data on openings and closures of services from 2022 to 2024 and found no evidence this was happening.

We also looked at what else was happening at the time such as the Covid pandemic (vaccination requirements for most businesses weren’t removed until 4/4/2022). We noted the rise in qualified teachers – in 2021, 65.5% of staff at these services were qualified teachers, compared to 67% in 2024. In 2025 more than 90% of eligible centres have opted-in to some form of pay parity.

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The Government spent 13% more on funding early childhood education last year than in 2023, but three out of the top four not-for-profit provider groups got a smaller portion of the pie.

The two largest privately-operated provider groups – BestStart and Busy Bees – received slightly more funding (proportionately) year-on-year. 

New Shoots Children’s Centres had the highest amount of funding per individual service in the group ($31.26M for 16 services, or just under $2M per service).

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(See charts and tables below for more details.)

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