A Giant Muddle: What Officials Are Not Explaining About ECE’s Transfer to ERO
NEWS & ANALYSIS – 2 March 2026
UPDATED on 21 May 2026
The Government is pushing ahead with a major restructuring of early childhood education regulation, shifting core responsibilities, including the powerful new Director of Regulation role, from the Ministry of Education to the Education Review Office. The decision is political, the process muddled, and there is little evidence that officials on either side are prepared for what this shift will unleash.
A new statutory role of Director of Regulation (ECE) was created through the Education and Training (Early Childhood Education Reform) Amendment Bill passed on 26 November 2025. The role took effect on 23 February 2026. It is a standalone statutory position in the Ministry of Education and does not depend on whether regulatory responsibility is eventually transferred to the Education Review Office.
The Director holds significant powers, including the authority to prosecute early childhood services, and operates outside the Ministry’s usual chain of command. The Director has more formal authority than the Ministry’s chief executive. This unusual structure creates the potential for conflict no matter where the regulatory function ultimately sits – within the Ministry or inside the Education Review Office.
In its submission on the transfer of ECE regulatory responsibility to ERO, the OECE noted that many in the sector viewed the decision‑making as underhand and the transfer as politically driven. It warned that shifting regulatory oversight into the Education Review Office, an agency whose core mandate is quality assurance rather than enforcement carries significant risks. The proposed transfer would undermine integrated stewardship of the ECE system, is not supported by evidence, and would introduce disruption and risk without any clear benefit.
A Confusing Timeline and Legislative Gaps
31 July 2025 – Minister Seymour announced, via press release, that he had decided ECE regulatory functions would be transferred to the Education Review Office.
26 November 2025 – The transfer did not appear in the Education and Training (Early Childhood Education Reform) Amendment Act passed on this date.
15 December 2025 – While considering the Education and Training (System Reform) Amendment Bill, Parliament’s Education and Workforce Committee announced it would consider the transfer despite it not being included in this Bill. The public was given only until 14 January to make submissions, with no detail on what the transfer would involve.
14 May 2026 – A proposal to transfer regulatory functions to the Education Review Office was added at the second reading of the Education and Training (System Reform) Amendment Bill. If passed, the transfer will take effect on 1 September 2026.
Director of Regulation appointments
The Ministry of Education has advertised the Director position more than once, and has just made a new 12‑month fixed‑term appointment. At the same time, ERO has advertised a senior regulatory role of its own that includes a director for ECE regulation signalling that it is preparing for responsibilities it does not yet legally hold.
On 10 February 2026, the Ministry advertised the Director of Regulation (ECE) role as a full‑time, six‑month position, with applications closing on 17 February.
Under legislation, the Director of Regulation role took effect on 23 February 2026. However, it appeared that no one had been appointed. On 27 February, the OECE contacted the Ministry seeking to speak with the Director of Regulation (ECE). The Ministry’s call centre had no record of anyone holding the role but later advised that Helen Hurst would be the contact person.
On 2 March, a new Ministry leadership structure came into effect, and Helen Hurst formally took up the role of Director of Regulation (acting), in addition to her position as Deputy Secretary, Operations and Integration.
In April, the Education Review Office advertised a new statutory position: Deputy Chief Executive for Regulation and Early Childhood Education, despite legislation for the regulatory transfer not yet being finalised.
The job description included responsibility for “risk‑based” regulation and assurance across early childhood services, as well as oversight of hostels and private schools.
Then, on 4 May 2026, Ray McMillan began a 12-month fixed term position as Director of Regulation (ECE) in the Ministry of Education, taking over from Helen Hurst.
This creates a potentially awkward overlap. If the transfer to ERO is passed by Parliament, it will take effect on 1 September 2026. That means the Ministry’s 12-month Director role would extend directly into the period when regulatory responsibility may shift to ERO and to its new Deputy Chief Executive, should that appointment be made.
Education Review Office Leadership Gaps and Capacity Problems
ERO is a small agency that has recently undergone restructuring and has lost several early childhood positions.
It also has not had a permanently appointed Chief Executive and Chief Review Officer for some time. In December 2025, Ruth Shinoda was appointed Acting Chief Executive and Chief Review Officer. On 10 May 2026, she left on secondment to Ofsted in England and AERO in Australia. Tim Fowler has since taken up the role of Acting Chief Review Officer and Chief Executive.
ERO’s 2024 Savings Programme shows the organisation has been under pressure to reduce costs. It cut spending by reducing contractors, slowing recruitment, lowering travel, and changing its early childhood review methodology. Even with these measures, ERO reported that savings were insufficient and further efficiencies were required. The 2025 Public Service Census found that 66 percent of ERO staff felt staffing levels and workloads prevented them from performing at their best, one of the highest rates in the public sector. ERO also recorded the highest proportion of dissatisfied staff across all 41 public service organisations surveyed. Concerns about organisational culture and staff wellbeing at ERO have also been raised. An Official Information Act response from the Public Service Commission confirmed that no steps had been taken to improve ERO’s workplace culture or strengthen health, safety, and wellbeing support for staff.
OECE concerns
The Office of Early Childhood Education is concerned that the proposed transfer is unnecessary and risks creating more problems than it solves. A more practical approach would have been to strengthen the Ministry’s enforcement capability through targeted training, national consistency, and clearer operational guidance. The Government could also have explored merging the Ministry of Education and the Education Review Office into a single agency, rather than shifting regulatory oversight for ECE out of the Ministry into an agency that’s under stress and designed for quality assurance and reviewing – not enforcement.
There are also concerns about cost. The transfer will require significant financial and human resources across Government agencies. It will also place additional pressure on early childhood services, which will need to adjust to a new regulator, new processes, and new documentation requirements.
Dr Sarah Alexander has shared her thoughts on the proposed transfer and the video has already been viewed more than 18,000 times. That is a clear indication that people across the sector are concerned and are watching closely.
If you would like to share your thoughts on what is happening, please feel free to add your thoughts here
