The Childcare Subsidy and Hourly/Weekly Rates.
Eligibility for the Work and Income childcare subsidy depends on family household income.
The Childcare Subsidy is available for up to 9 hours a week when the parent/ caregiver is not working and up to 50 hours a week when the parent/caregiver is in employment/working or in training.
The subsidy does not apply for the hours that a family claims for 20-Hours ECE. So its ethical to advise families to claim the childcare subsidy if they would be better off with it should the ECE service’s fee structure mean that parent are paying for 20-Hours ECE.
WINZ Childcare Subsidy Rates
Below are the latest rates and these apply from 1 April 2025.
Household income threshold amounts have also changed. In brackets, you’ll see the previous rates before the April 2025 so you can see by how much the rates have just increased)
| Number of children | Gross weekly total household income before tax | Hourly rate per child | Weekly rate per child for 50 hours |
| One child | Less than $1,099 (Less than $1,062) | $6.52 (was $6.38) | $326 (was $319.00) |
| One child | $1,099 to $2,001.99 (1,062 to $1,933.99) | $5.20 (was $5.09) | $260 (was $254.50) |
| One child | $2,002 to $2,168.99 ($1,934 to $2,094.99) | $3.64 (was $3.56) | $182 (was $178.00) |
| One child | $2,169 to $2,335.99 ($2,095 to $2,256.99) | $2.03 (was $1.99) | $101.50 (was $99.50) |
| One child | $2,336 or more ($2,257 or more) | Nil | Nil |
| Two children | Less than $1,264 | $6.52 | $326.00 |
| Two children | $1,264 to $2,302.99 | $5.20 | $260.00 |
| Two children | $2,303 to $2,484.99 | $3.64 | $182.00 |
| Two children | $2,485 to $2,669.99 | $2.03 | $101.50 |
| Two children | $2,670 or more | Nil | Nil |
| Three or more | Less than $1,416 | $6.52 | $326.00 |
| Three or more | $1,416 to $2,568.99 | $5.20 | $260.00 |
| Three or more | $2,569 to $2,786.99 | $3.64 | $182.00 |
| Three or more | $2,787 to $3,003.99 | $2.03 | $101.50 |
| Three or more | $3,004 or more | Nil | Nil |
Parents
Check with WINZ for more information or go to WINZ childcare subsidy information for parents
Service Providers
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?
One thing to note is that Government has no control over childcare fees. Services set their own fees.
By the time the subsidy increases take effect in April of next year, any ECE service that wants to, may well have raised its fees, effectively wiping out any, or all, potential fee reduction from the subsidy increase.
But families who previously didn’t qualify for the subsidy because they earned too much will likely enjoy some very welcome fee reduction.
What else is needed?
Pay parity for early childhood teachers with schoolteachers needs to be delivered or there are not going to be the teachers to work in the early childcare and education services.
Ardern said that Free ECE for all is her big wish. So why the Labour Government does not deliver on its promise of providing 20 Hours Free ECE (read “a broken promise”) is a mystery.
Ardern also said that she wants parents to “stay home and be a primary caregiver if they choose to”. But if the government honestly supported this, then we would see the subsidy going to parents, to give parents financial choice to care for their child or to use it for childcare.
