ECE Funding Handbook

Welcome to the ECE Funding Handbook. This handbook is issued under section 548(5) of the Education and Training Act 2020.

Funding of certain services and certified playgroups – NZ Legislation(external link)

The funding paid to licensed services is paid subject to the terms and conditions set out under this handbook and must be complied with. The terms used in this handbook are based in the Education (Early Childhood Services) Regulations 2008.

This handbook is designed to be a 'one-stop-shop' of everything you need to know about early childhood funding, including:

  • the ECE Funding Subsidy
  • 20 Hours ECE funding
  • equity funding
  • the annual top-up for isolated services

This information does not apply to certificated playgroups

The information in the Funding Handbook does not apply to certificated playgroups.

These services should contact their Ministry regional office for further information.

Local Ministry offices

Download the ECE Funding Handbook

If you would like to print a copy of this handbook, refer to the list of downloads in the contents section where you will find downloadable PDF versions of each chapter.

ECE Funding Handbook downloads

9-2 Calculating the ECE Funding Subsidy

A Symbol CompassClipboard

  • Introduction
    • This section explains how services can calculate the ECE Funding Subsidy.

  • Example
    • Throughout this section there are examples of two services calculating their ECE Funding Subsidy.

      • Kowhai Street Childcare Centre is an all-day service.
      • Huia Playcentre is a sessional service.
  • Step 1: Under 2s
    • A Symbol Clipboard

      Follow the steps below to calculate the FCHs for children aged under two:

      StepAction
      1 List the daily number of hours of enrolment for each permanently enrolled child under two years of age.
      2 If any children under two years of age attended the service on a casual or conditional basis, list the number of hours each of these children attended. 
      3

      List the number of hours that can be claimed for each child.

      Note: a maximum of six hours can be claimed each day for each licensed child-place. 

      4

      Add together the claimable hours for each day.

      This is the Under Twos FCHs for the day. 

      5

      Round the total to the nearest whole number.

      Numbers ending in 0.5 or above should be rounded up to the next whole number. Numbers ending in 0.4 or below should be rounded down to the previous number. 

      6 Repeat Steps 45 for each day in the month. 
      7 Write the FCHs for each day in the column labelled “Under 2”. 
      8 Add together the FCHs for Under 2s for the month. 
      9 Write the total for the month in the box labelled “Total”. 
  • Step 1: all-day example
    • A Symbol Clipboard

      On 1 September, Kowhai Street Childcare Centre had three children under the age of two enrolled in their service. One child under the age of two attended casually.

      Kowhai Street Childcare Centre

  • Step 1: sessional example
    • A Symbol Clipboard

      Huia Playcentre operates two sessions per day, each for 2.5 hours:

      Note: A session of 2.5 hours will receive funding for 3 hours.

      Huia Playcentre

  • Step 2: 2 & overs
    • A Symbol Clipboard

      Repeat Step 1 (above) for children aged two or over less any hours for children claimed as 20 Hours ECE.

  • Step 2: all-day example
    • A Symbol Clipboard

      On 1 September, Kowhai Street Childcare Centre had six children aged two or over enrolled in their service. Four children aged two or over attended casually.

      Kowhai Street Childcare Centre step 2