The growth budget that starves Early Childhood Education!

23 May 2025

It is a dark time for early childhood education (ECE). The government’s budget has failed to deliver for our youngest learners, leaving the sector even worse off than they were a year ago.

“The ECE sector can’t grow when it’s being starved of funding,” says Kathy Wolfe, CE Te Rito Maioha.

“Investment in education is vital for the wellbeing of everyone in Aotearoa New Zealand, so for ECE to receive a 0.5% funding increase while inflation runs at 2.5% is nothing less than a funding decrease at the worst possible time.”

“The ECE sector has experienced a multi-year funding freeze prior to 2017 under National leaving the sector approximately 11% behind CPI over the last 10 to 15 years. While the government touts the new Social Investment Fund, it is ironic that ECE, which aligns with a social investment approach of early and effective intervention to improve outcomes for tamariki, has yet again been stifled in a so-called investment budget.”

“The time and place for investment in our future is now, and that investment must begin with our youngest tamariki. ECE providers will have no option but to pass the increased costs of providing early learning onto parents. This budget has provided few opportunities to reduce the cost of living for parents with children.”

“With around 194,597 tamariki, 33,309 teaching staff (qualified and unqualified) and 4,409 service providers in ECE being affected by funding decisions, we were very hopeful that the government’s stated priority for education would result in appropriate investment for early childhood education. On this priority, the government has not delivered.”

“This is a missed opportunity for the government to deliver on some of the systemic changes that are sorely required and to fund the sector appropriately. Whilst the sector are grateful that there is a small increase of 0.5% in funding for ECE providers, it doesn’t even keep up with inflation which is running at 2.5%. That’s effectively a funding cut and that’s very disappointing.”

“Te Rito Maioha has been continuously advocating for an ECE Funding Review to fix a broken system, so we are pleased that funding of $3.8 million has been confirmed to address funding and finally rectify fit for purpose and meaningful investment in ECE to all providers, teachers, tamariki and communities. However, any expected changes are likely to occur no earlier than 2027, far too late to support a stressed ECE sector and a better increase for the sector, the very least at inflation, would’ve landed better.”

Media Contact

Rob McCann - Lead Communications Advisor | Kaitohutohu Whakapā Matua
022 411 4560
rob.mccann@ecnz.ac.nz