Will The ECE Funding Review Sacrifice The ‘Quality’ In New Zealand’s Quality ECE Or Deliver A Balanced Recommendation?

The Early Childhood Education (ECE) Sector Leaders congratulate those appointed to the Ministerial Advisory Group (MAG) leading the Government’s comprehensive review of ECE funding.

“Sector leaders have been asking for this review for years, and we are excited that funding and an appropriate time frame have been put in place,” says Jill Bond, CEO of New Zealand Kindergartens. This expert Group has been tasked with one of the most significant responsibilities facing the ECE sector in a generation, to review how Government investment can better support quality educational outcomes for children, improve affordability and access for families, and ensure that services are sustainable, equitable, and fit for the future is critical to success.”

“We welcome the Group’s strong mandate to explore options that uphold the purpose of ECE by supporting all childrens’ development enabling participation in the workforce. The funding system is broken and we’re pleased to see a review starting.”

“At the heart of this mandate sits the need to preserve and enhance access to high-quality, teacher-led services, that is the cornerstone of New Zealand’s early childhood education system,” says Kathy Wolfe, Chief Executive of Te Rito Maioha. “Up till now, the Government-mandated changes to the sector have been focused on keeping services operating while potentially risking the quality education and care that directly impacts our tamariki. We hope the MAG takes careful consideration of the factors inherent in quality ECE especially as Minister Seymour is quoted as saying the review would ensure families had better access to affordable services. What the sector needs to hear from the outset is that word ‘quality’ from the Minister when talking about education, not just cost savings.”

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“ECE Sector leaders welcome the inclusion of for-purpose community-based and not-for-profit ECE expertise within the MAG, but there are some concerns that there is no Māori and Pasifika experience. The consultation process will need to be carefully planned to capture these voices. While we acknowledge the importance of ensuring ECE is affordable, the Government's Budget 2025 decision to fund the sector with a 0.5% increase while inflation runs at 2.5%, demonstrated a disconnect with the realities of providing quality ECE,” says Heather Taylor, Barnardos Chief Operating Officer, we hope the MAG takes onboard the interests of the whole sector.”

Wolfe continues, “with over $3.1 billion of public investment in ECE annually, we believe the most effective return comes from ensuring that this funding supports services where qualified teachers deliver intentional, responsive, and culturally grounded teaching and learning. The international and local evidence is clear: teacher-led ECE delivers stronger developmental outcomes for tamariki, particularly those experiencing disadvantage.”

“Any review that attempts to break the connection between hiring qualified teachers and funding, will ultimately lower quality and harm our tamariki. While this would be an easy win for lowering ECE costs, having our tamariki educated and cared for by trained professionals should be the building block on which any ECE funding model is built. Our concern is that quality teaching might be the first casualty of any review that is labour market-focused. Quality cannot be compromised by eroding child:teacher ratios or qualified and registered teachers, nor making children a commodity.”

Cathy Wilson, Chief Executive of Montessori Aotearoa NZ agrees, “as the MAG begins its important work, we also urge a strong focus on long-term sustainability. Cutting costs on the critical role of professional teaching staff will lead to fewer teachers being trained and decrease teacher retention. Any future funding settings must support fair pay, career development, and service viability. These elements are not luxuries; they are research-backed essential components for a high-trust, high-quality ECE system that prioritises children's needs.”

“We look forward to engaging with the Group throughout the consultation process and contributing to a systemic future-focused ECE investment system that upholds quality, equity, and the right of every child to learn in an environment led by qualified teachers,” says Jill Bond.

Notes:

Early childhood education plays a crucial role in shaping the future of our society and economy, with estimated economic and social returns of up to $16 for every dollar invested[1]. ECE contributes to improved education, health, justice, and social wellbeing outcomes for children, especially for those who are disadvantaged. ECE also delivers wider benefits. Stable access to ECE supports maternal mental health, and it supports parents to re-enter the workforce. If cost barriers to ECE were removed, New Zealand parents could have increased workforce participation rates, unlocking $116 million in wages each year.

New Zealand’s current ECE funding model creates barriers to achieving the educational, social and economic outcomes expected from investment. Established over two decades ago and subject to piecemeal changes, today’s model is confusing and complex. Funding pressures have contributed to over 170 providers closing their doors in 20236. As a result, many families struggle to access quality ECE even if they can afford it, noting that New Zealand’s ECE services are amongst the least affordable in the OECD.

There is broad recognition that significant change is needed. In June 2024, Government agreed to commission this ECE Funding Review. At the same time, two other related reviews, the ECE Regulatory Review and System Review of Learning Support will recommend ways to have a greater educational and broader impact.

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