Detailed information on specific initiatives for Early Childhood Education

$100.7m Cost Adjustment for Early Childhood Education

Which services receive this cost adjustment?

All early learning services will receive the cost adjustment to their funding rates.

Home-based services will only receive it for the quality rate, not the standard rate. This aligns with the workforce qualification goals for home-based educators.

This applies to the existing ECE Subsidy for Under 2s, ECE Subsidy for 2s and Over, 20 Hours ECE, and all components of Equity Funding, with effect from 1st January 2022. The increase in Targeted Funding for Disadvantage will take effect from 1st March 2022.

Why is the cost adjustment for Early Childhood Education set at 1.2%?

This cost adjustment is based on the Treasury’s Half Year Economic and Fiscal Update (HYEFU) which is the most up to date information available during the Budget process. This was issued on 16 December 2020 and forecasted inflation at 1.2%.

More than $170m for Moving Towards Pay Parity for Teachers in Education and Care services

How will services receive this funding in July 2021?

Existing funding rates will be increased at the same time as raising the minimum rates services must attest to paying.

How will services receive this funding in January 2022?

From 1 January 2022, subject to the passage of the Education and Training (Grants – Budget Measures) Amendment Bill, an additional set of higher ‘parity’ rates will be made available. Education and care services that agree to pay, at a minimum, their certificated teachers at the first six of the eleven applicable pay steps set out in the Kindergarten Teachers, Head Teachers and Senior Teachers’ Collective Agreement 2019-2022 would be paid the new parity rates. As is currently the case, there will be different bands of rates adjusted for the proportion of child hours provided by certificated teachers.

Government intends to introduce the Education and Training (Grants – Budget Measures) Amendment Bill on Budget day to enable this latter part of the initiative to occur by January 2022.

What’s happening with Kōhanga Reo?

Funding has been set aside to improve pay in kōhanga reo. The Ministry intends to work collaboratively with Te Kōhanga Reo National Trust to agree how best to make this work for kōhanga reo.

$9.28m to develop an early learning network function

What will an early learning network function mean for the sector?

This new function, along with the new licencing regime set out in the Education and Training Act 2020 will help to manage the number of services and ensure their quality.

This is about making sure the network is sustainable in a given area, and that young people are in quality care and education.

The first step will be getting better information about the current network, including population trends and current services.

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