Thousands of families across New Zealand could lose their childcare options in the next 12 months as a massive funding hole is making it harder for early childhood education (ECE) centres to meet rising costs.

“Service closures are highly disruptive to children’s wellbeing and education,” says Kathy Wolfe, CE of Te Rito Maioha. “Ensuring quality provision of ECE meets both the educational and developmental needs of tamariki, while also allowing parents to work and the economy to grow. It’s a triple-whammy impacting children, parents and the economic outcomes for whānau and the country.”

“Around 80% of a child’s brain develops in the first 2000 days of their life,” says Cathy Wilson, Chief Executive of Montessori Aotearoa NZ. “This lays the foundations for emotional regulation, learning, relationships and wellbeing. These early years are when children build the skills that help them arrive at school ready to learn, ready to connect, and ready to thrive. If the government doesn’t provide the funds to keep the lights on, tamariki and primary schools are going to miss out.”

“Early Childhood Education in Aotearoa New Zealand has always been a positive partnership between Government and New Zealand families,” says Jill Bond, CEO of New Zealand Kindergartens. “It was set up this way to ensure every child has access to crucial foundational education. With the government constantly looking to find savings, the concept of sharing the real cost of quality ECE between parents and the government is falling over. Providers are not able to pass on the ever-increasing costs to parents, because parents simply cannot afford to pay more and it feels like the government are abdicating their responsibility in this partnership.”

“443 closures over the past 3 years is a transparent measure demonstrating the sector is under considerable strain,” says Kelly Seaburg, Chair of Advocates for Early Learning Excellence. “It is not hyperbole to say the sector is in trouble.”

“If there is no immediate relief in sight,” says Mrs Seaburg, “more services will close, impacting more children and more families, right when there are green shoots in the economy that needs ECE to support any upwards trajectory. We don’t want ECE to be the Achilles heel of New Zealand’s economic recovery!”

Heather Taylor, Barnardos Chief Operating Officer agrees. “With the finance minister setting the scene for a Budget 26 with an emphasis on demonstrating tight control of discretionary government spending, the sector is asking Minister’s to recognise that we can’t afford to fail our tamariki if we also want the economy to grow. The government must cover the costs of Government-mandated pay parity increases, and the escalating operational expenses, or any economic recovery will be hamstrung by a lack of ECE provision.”

“There are simply no options available to quality ECE providers. If parents can’t pay for the rising cost of provision, service providers will have to consider their options – these decisions could have devastating impacts for children to access quality early learning,” says Mrs Taylor.

Notes:

• Budget 2025 had a 0.5 per cent cost adjustment, which fell short of what is needed to cover Government-mandated pay parity increases, and the escalating operational expenses.
• Analysis indicates more than 190,000 New Zealand children are at risk of losing access to quality early learning with services across the country under serious pressure due to ever-increasing operating costs and pay parity increases.
• For many organisations, particularly those serving low-income and rural communities, government subsidies make up as much as 90% of their income. Even if families utilising these services could afford fee increases, analysis indicates this would cover just 21% of the shortfall.
• If ECE remains under pressure, we estimate up to 400 centres could close in the year to July 2026 – the impacts of this being significant and wide-reaching.

About ECE Sector Partners:

ECE Sector Leaders Partnership includes Te Rito Maioha, Montessori Aotearoa New Zealand, New Zealand Kindergartens, Advocates of Early Learning Excellence, New Zealand Homebase Childcare Association, and Barnardos Aotearoa. Its membership and services represent approximately 60% of the early childhood sector.

Home Page | Education | Previous Story | Next Story

Copyright (c) Scoop Media