Childcare Subsidy and Hourly/Weekly Rates
Eligibility for the Work and Income (MSD) Childcare Subsidy is based on total household income and the number of dependent children. The subsidy is paid directly to the ECE service.
The number of hours of subsidy a family can receive depends on the parent or caregiver’s circumstances:
- Up to 50 hours per week if the parent/caregiver is working, studying, in training, seriously ill or disabled, caring for a child in hospital, or caring for a child who receives the Child Disability Allowance.
- Up to 9 hours per week if the parent/caregiver is not in paid work, study, or training.
The Childcare Subsidy cannot be claimed for the same hours that a family uses 20 Hours ECE. This means:
- If your fee structure results in families paying for some or all of the hours covered by 20 Hours ECE, it is ethical and good practice to advise parents to check whether they would be financially better off claiming the Childcare Subsidy instead.
- Transparent communication helps families avoid unnecessary costs and supports equitable access to ECE.
Childcare Subsidy Rates (from 1 April 2026)
The table below shows the updated Childcare Subsidy rates that apply from 1 April 2026. The amounts in brackets show the previous year’s rates, so you can easily see how much each rate has increased after the annual adjustment.
One Child
| Household income (weekly, before tax) | Hourly rate | Weekly rate (50 hours) |
| Less than $1,131 (was less than $1,099) | $6.72 (was $6.52) | $336 (was $326) |
| $1,131 to $2,059.99 (was $1,099 to $2,001.99) | $5.36 (was $5.20) | $268 (was $260) |
| $2,060 to $2,231.99 (was $2,002 to $2,168.99) | $3.75 (was $3.64) | $187.50 (was $182) |
| $2,232 to $2,403.99 (was $2,169 to $2,335.99) | $2.09 (was $2.03) | $104.50 (was $101.50) |
| $2,404 or more (was $2,336 or more) | Nil | Nil |
Two Children
| Household income (weekly, before tax) | Hourly rate | Weekly rate (50 hours) |
| Less than $1,301 (was less than $1,264) | $6.72 | $336 |
| $1,301 to $2,369.99 (was $1,264 to $2,302.99) | $5.36 | $268 |
| $2,370 to $2,556.99 (was $2,303 to $2,484.99) | $3.75 | $187.50 |
| $2,557 to $2,747.99 (was $2,485 to $2,669.99) | $2.09 | $104.50 |
| $2,748 or more $2,670 or more | Nil | Nil |
Three Children
| Household income (weekly, before tax) | Hourly rate | Weekly rate (50 hours) |
| Less than $1,457 (was less than $1,416) | $6.72 | $336 |
| $1,457 to $2,643.99 (was $1,416 to $2,568.99) | $5.36 | $268 |
| $2,644 to $2,867.99 (was $2,569 to $2,786.99) | $3.75 | $187.50 |
| $2,868 to $3,090.99 (was $2,787 to $3,003.99) | $2.09 | $104.50 |
| $3,091 or more (was $3,004 or more) | Nil | Nil |
Guidance for Parents
Parents should contact Work and Income (WINZ) directly for personalised advice. Families often benefit from checking:
- Whether they qualify for more hours
- Whether their income has changed
- Whether their service’s fee structure affects the value of the subsidy
Further parent‑friendly information is available at the My ECE website: www.myece.org.nz
Guidance for ECE Services
Services should ensure:
- Invoices and statements clearly show how the Childcare Subsidy is applied
- Attendance records and claim information meet MSD requirements
- Policies reflect transparent, ethical fee practices – view fees policy guidance and template.
Supporting families to access the subsidy strengthens trust and helps ensure equitable participation in ECE.
Additional claim information and advice on managing arrears is available for ECE Services on our website.
News Story “Childcare Subsidy Changes”
November 7, 2022.
The income thresholds for families to qualify for the WINZ childcare subsidy are to be lifted from 1 April next year, as well as subsidy amounts.
Prime Minister Ardern said this will help to tackle the cost-of-living crisis for families and give more parents, especially mothers, the choice to return to paid work by making childcare more affordable.
The lift in income thresholds is long-overdue – the number of children supported has dropped from 50,000 in 2010 to fewer than 25,000 this year. Many more families will now qualify.
Radio NZ Checkpoint programme: “The government’s touted its $189 million boost to childcare subsidies as a way to get more parents into full-time work, and to fill labour shortages. But some parents are dubious it’s worth a return to the workforce – and if it will it put extra money in their pockets. Our reporter Katie Todd has been crunching the numbers.”
Will the increased subsidies help parents get back to paid work?
Maybe not. NZ already has a record level of female participation in the workforce, so any increase in work resulting from the subsidy is likely to be quite small. Those that want to be in paid work have mostly found a way to do it, and there’s no shortage of jobs and employers at present willing to be flexible about hours of work. So come 1st April next year, we do not expect to see a sudden increase in enrolment numbers in early childhood education and care.
Will the subsidy increase help parents with the cost of living?
Childcare fees are set independently by each ECE service, and the Government does not control how much services choose to charge. This means that by the time the higher subsidy rates take effect in April next year, some services may have already increased their fees. Any fee rise has the potential to reduce, or even cancel out, the benefit families might otherwise receive from the subsidy increase.
Families who previously earned too much to qualify for the subsidy are likely to see the biggest improvement. The higher income thresholds mean more households will now receive some level of support, which should reduce their weekly childcare costs.
What else is needed?
Public statements from political leaders have highlighted aspirations for more affordable childcare, including the idea of genuinely free ECE. Despite this, the long‑standing promise of fully delivering 20 Hours Free ECE has not been realised. Many families still pay for hours that fall within the 20‑hour entitlement because of service fee structures and optional charges.
Prime Minister Jacinda Ardern has also said that she wants parents to “stay home and be a primary caregiver if they choose to”. If the goal is to give parents genuine choice – whether to stay home as a primary caregiver or use formal childcare – then financial support would need to be paid directly to parents rather than to services. Direct payments could give families more flexibility in how they arrange care, but this would represent a significant shift from the current funding model.
