The equity index#

Eligibility for Component A is based on the Equity Index (EQI). This index measures the extent to which a service draws children from low socio-economic communities.

The ECE EQI is calculated based on enrolled children’s addresses and information taken from the New Zealand Census 2006. The EQI for casual services is determined using the average for all other ECE services in the same area.

Eligibility for funding#

Licensed ECE services with an EQI of 1, 2, 3 or 4 are eligible to receive Component A Equity Funding.

Your EQI#

Your service’s EQI is found in Pourato on your Service Details tab, under Service Profile.

How is funding calculated?#

The level of funding paid to each eligible service is determined by:

• its EQI and
• the funded child hours claimed by the service in the RS7 Return process.

Each actual funded child hour is multiplied by the relevant funding rate.

As with the ECE Funding Subsidy, Equity Funding may not exceed six hours per child-place per day (or per child for 20 Hours ECE), to a maximum of 30 hours per child-place per week (or per child for 20 Hours ECE).

Applications#

Applications for Component A are not necessary. The Ministry of Education calculates the EQI for each licensed ECE service and notifies services that are eligible for funding.

To calculate an EQI value the Primary Residential Addresses of all enrolled children at a service are used. These addresses are submitted as part of a child's enrolment details to ELI. The Ministry will contact new services when the information is being extracted.

• If your service has recently opened, then you should wait to be contacted by the Ministry of Education. Your service will automatically be included in the next ‘new service’ process (March and October). To allow time for necessary updates, you will be contacted by the Ministry advising when the primary residential address data of enrolled children will be extracted.
• If your service has been part of a merger with another service, the merged service will automatically be included in the next ‘new service’ process (March and October). You will be contacted by the Ministry advising when the primary residential address data of enrolled children will be extracted.
• If your service has previously chosen not to have an EQI calculated, but would now like to, then you should email the ECE EQI Collection mailbox on [email protected]. The team will ensure you are contacted at the time of the next ‘new service’ process.

Applying for a review of your EQI#

Services can request a review of their EQI value once a year. These requests must be with the Ministry by the last working day of October each year.

All services may apply for a review of their EQI if:

• they consider that the service’s community profile has changed significantly since their EQI was issued or
• they consider that the service’s individual catchment area has changed significantly since their EQI was issued
• the service does not currently have an EQI value.

Note a review of your EQI may result in a change in your EQI value and impact your equity funding.

For more information and the application form, see the ECE Equity Index Assessment page on Education Counts or contact us using the ECE EQI Collection mailbox.

Email: [email protected]

Expenditure#

All Equity Funding is ‘tagged’ and must be spent with the equity objectives for participation and quality in mind.

Below are some suggestions for uses of Component A funding:

• purchase additional curriculum resources and an increased range of supplies
• subsidise learning experiences outside the service
• meet children’s nutritional needs
• provide assistance to attend the service (e.g. transport assistance)
• provide extra professional development for staff and extra education for whānau | families
• improve learning spaces
• help staff to train or upgrade their qualifications
• reimburse expenses of voluntary helpers
• introduce staff recruitment and retention initiatives
• promote the availability of the service within the community.

These are just some examples of ways that Component A Equity Funding can be used.