Making Early Childhood Education Affordable

Early childhood education should be free, rather than introducing a complex system of tax breaks, according to one of the country’s largest not-for-profit early childhood providers.

National’s leader Christopher Luxon pledged $400 million in tax rebates for low- and middle-income families in a speech over the weekend, intended to offset up to $75 a week in childcare fees.

However, Whānau Manaaki Kindergartens which operates 103 kindergartens in the lower North Island, and several homebased early education networks, says private providers could easily increase fees by a similar amount, leaving families no better off.

Chief executive Amanda Coulston says companies have already hinted at higher fees, citing cost pressures.

“With our current system of profit-oriented early education, and no limits on fees, there is nothing to stop companies raising fees to increase profits at the taxpayers’ expense”, says Amanda.

She says disadvantaged families cannot afford to pay fees in the hope of getting rebates, and making early childhood education free for families is the answer.

“Navigating the tax rebate system is complex, and assumes families have the money to enroll their child to start with. Changes in circumstances over the year can mean families end up owing IRD.”

“It is great that the major political parties are recognising the value of making early childhood education more affordable, but universal free access is the way to make this a reality” says Amanda.

The Labour led government’s extension to WINZ subsidies for childcare costs takes effect next month which is a good start, but the subsidies are complex, the forms are long and involved, and do not reflect current employment practices. Many low-income families don’t qualify. Many people work in casual and irregular employment with varying hours and the system does not cater for this.

Whānau Manaaki Kindergartens serve more than five thousand families a day, many in low-income communities.

“We have low fees, we offer 20 hours free to all families but we still waive fees for many families in hardship because other help is not available.”

Research from the Ministry of Women’s Affairs shows that mothers who cannot access suitable affordable childcare forgo around $116 million a year in lost wages, further disadvantaging their children.

The early childhood funding system needs a major overhaul to recognise the realities for today’s families where shiftwork and precarious work are common. All children benefit from quality early childhood education, whether or not their parents are in paid work.

“Early childhood education is arguably the most important education of all, because it sets the scene for future learning. It should be free, just as school is generally free.”

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