What are the policies for free Early Childhood Education (ECE)?

Hi there! When it comes to New Zealand's "20 hours free ECE" policy, many newcomers or families planning to have children often have questions. It sounds fantastic, but in practice, it's a bit different from the "completely free" everyone imagines. Let me help you untangle its intricacies so you can understand it clearly.

First, understand the core concept: It's not "free," but "government subsidized."

The official name of this New Zealand government policy is "20 Hours ECE."

Simply put, once your child turns 3, the government will help pay for up to 20 hours per week of Early Childhood Education (ECE) costs. This money is paid directly from the government to the childcare center, not given as cash to you.

Who is eligible for this benefit?

To receive this subsidy, your child needs to meet two basic conditions:

1. Age: Preschool children aged 3, 4, and 5. This subsidy continues until the child officially starts primary school (usually after their 5th birthday).
2. Status: The child must be a New Zealand Citizen or Permanent Resident. Children of some other visa holders may also be eligible, but PR is the most stable. If you are on another visa, it's best to confirm with the childcare center and the Ministry of Education before enrolling.

How does "20 hours free" actually work?

• Time Limit: A maximum of 20 hours per week is subsidized, and a maximum of 6 hours per day.
  • For example: If you want your child to attend for 8 hours on Monday, 8 hours on Tuesday, and 4 hours on Wednesday (totaling 20 hours). The government will only subsidize 6 hours on Monday, 6 hours on Tuesday, and 4 hours on Wednesday (totaling 16 hours). The remaining 4 hours (2 hours on Monday + 2 hours on Tuesday) will need to be paid by you.
• Enrollment Application: When you enroll your child in a childcare center, they will give you an "Attestation Form" to sign. This form is used to declare to the government that you are using these 20 hours of subsidy at this particular center.
• Can it be split?: Theoretically, you can split these 20 hours across different childcare centers (e.g., 10 hours at Center A, 10 hours at Center B), but it's more complicated to manage, so most families choose to use all hours at one center.

Here's the key: Why do I still have to pay?

This is where most people get confused. If it's "20 hours free," why is there still a cost on the bill? The main reasons are as follows:

1. Optional Charges

This is the primary reason and a common practice for many private childcare centers.

The government subsidy to childcare centers has a fixed standard, but many centers believe this standard is insufficient to cover their operating costs, especially those that aim to provide higher quality services. So, they establish "optional charges" to cover the shortfall. These fees typically cover:

• Higher staff-to-child ratios: For example, if the legal requirement is 1 teacher for 10 children, but the center aims for 1 teacher for 7 children for better care, the cost of the extra teacher needs to be shared by parents.
• Meals and snacks: Providing daily lunch, morning tea, and afternoon tea.
• Daily supplies: Such as sunscreen, nappies, etc.
• Special programs or activities: Such as visiting teachers for music or dance, or organizing excursions for children.

Key point: Theoretically, these fees are "optional," and you can choose not to pay. However, in practice, if you don't pay, the center might tell you they don't have a spot for your child, or your child cannot participate in certain group activities or eat the meals provided by the center (you'd need to bring your own food), which would be very inconvenient. Therefore, most parents end up paying these fees.

2. Costs exceeding 20 hours

If your child attends for more than 20 hours per week (e.g., for working parents needing full-day care), you will need to pay for the extra hours at the center's normal hourly rate.

3. Different types of childcare centers have vastly different fees

• Community Kindergartens: These are usually non-profit, and their fees are very low, often close to zero within the 20 hours. However, their drawback is usually shorter and fixed operating hours (e.g., only 9 am to 3 pm), and holidays align with primary schools, making them less suitable for families needing full-day care.
• Full-day Daycare / Childcare Centres: These are often commercially operated. To offer more flexible hours (e.g., 7:30 am to 6 pm) and richer services, they almost always have "Optional Charges." Their fees will be significantly higher than Kindergartens.

A few practical tips for new parents

1. Before enrolling, always check the fee schedule! Don't just listen to verbal explanations; always get a written fee breakdown and understand what each charge entails.
2. Don't be afraid to ask! Directly ask the center manager: "What are your optional charges and what do they cover?" Then follow up with: "What happens if I choose not to pay the optional charges?" Their answers will help you determine if the center is transparent and suitable for your needs.
3. Shop around and calculate comprehensively. Don't just look at the hourly rate. Some centers might have a higher hourly rate but include all meals and nappies, which could end up being more cost-effective overall than another center that seems cheaper but charges extra for everything.
4. Remember the deadline. This subsidy automatically stops when your child turns 5 and starts school. Be prepared for budget planning, as After School Care is also a significant expense once your child starts school.

I hope this information helps you better understand New Zealand's ECE policy! Wishing you and your child a happy life in Aotearoa!