Warnings that Labour’s so-called “20 hours free” early childhood education for 2-year-olds policy may not result in parents paying lower fees shows its Budget centrepiece was a farce from the beginning, National’s Early Childhood Education spokesperson Penny Simmonds says.

“Budget advice released today shows that officials warned Labour that their policy would not necessarily translate into lower fees for parents, despite their claims it would deliver ‘cheaper childcare’.

“Labour is so utterly unable to deliver improved outcomes for Kiwis that they have resorted to making promises even when they know they might not materialise.

“Officials also cautioned Labour that their policy is untargeted and low value for money.

"That's why National’s FamilyBoost childcare rebate goes directly to parents, so New Zealanders struggling through Labour's cost-of-living crisis can keep more of what they earn.

“Labour flagship policy of Budget 2023 has been a shambles from the beginning, and they have already been forced back to the drawing board after the policy was slammed by the vast majority of the ECE sector, calling it ‘completely unworkable’.

“Today’s advice makes clear this was always a dud policy from the beginning, which no number of patch-ups will fix.

“Instead, Labour should adopt National’s FamilyBoost childcare rebate so up to 130,000 families could receive a rebate of up to 25 per cent on their early childhood expenses, to a maximum of $3,900 per year, depending on their income.

“Only National knows that through a strong economy and smart policy, we can lift incomes, deal with the cost-of-living crisis, and deliver the public services Kiwis deserve.”

Click here to view the relevant Budget 2023 information release.

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