MoE advice reveals cost-cutting takes priority over quality in ECE

25 July 2025

Newly released advice from the Ministry of Education to Minister David Seymour shows the Government is more focused on helping ECE providers cut costs than on making sure young children get high-quality, safe accessible early learning.

In the document Options to reduce ECE service staffing costs, four options were provided (three of which remain redacted), all aimed at cutting the most significant cost for providers: staff wages. One of those options which has recently been implemented, allows employers to pay new teachers the minimum starting rate, regardless of their qualifications or experience.

“This advice confirms what we feared, that cost savings for providers are being prioritised over children’s learning and wellbeing,” says Kathy Wolfe, Chief Executive of Te Rito Maioha Early Childhood New Zealand. “Reducing pay for qualified teachers not only undermines professional standards, but it also risks deterring future teachers from joining the sector. Is this really what the Minister and Associate Minister of Education want? We were told their goal was to lift education outcomes and that journey begins in early childhood.”

The Ministry’s advice, requested by Minister Seymour, states that this cost-cutting measure is expected to save providers up to $22 million over two years. It also acknowledges the serious risks associated with this approach.

“The Ministry’s own words say it all, this move makes ECE teaching ‘less attractive for those considering studying and entering the workforce’,” says Cathy Wilson, Chief Executive of Montessori Aotearoa New Zealand. “We’re already in a teacher workforce shortage and need to attract more teachers and retain a higher number of teachers. How can we expect to maintain a high-quality system when we devalue the people who deliver it? This short-term thinking will only create bigger problems, with fewer qualified teachers, more instability in the workforce, and a greater risk to children’s safety and well-being. How does that help prepare tamariki for school?”

Even more concerning is the Government’s apparent intention to abandon the Pay Parity scheme. This initiative links the pay of ECE teachers in education and care centres to that of kindergarten teachers, who are funded directly by the government and have pay parity with primary teachers. The system was designed to ensure fairness across the teaching profession, recognising experience and qualifications whether a teacher is in ECE, primary, or secondary education.

“Teachers are teachers, whether they’re working with infants, children, or teenagers,” says Mrs Wilson. “Undermining the pay and conditions of ECE teachers sends a clear message that their work is valued less. That’s not only short-sighted, but it’s also damaging for teachers, tamariki, and whānau alike.”

The implications are serious. In wealthier communities, providers may simply pass increased costs on to parents who can pay. In lower-income communities, however, providers will be more likely to cut wages, reduce qualified staff, or take advantage of any future changes that lower the minimum qualification requirements, effectively creating a two-tier ECE system.

“We’re staring down the barrel of deepening inequity in early childhood education,” says Mrs Wolfe. “If qualification requirements are relaxed and pay is suppressed, the quality of teaching in some demographic areas will decline, and with it, outcomes for tamariki.”

This direction, Mrs Wolfe warns, will increase teacher turnover, shrink the future workforce, and accelerate the decline of New Zealand’s globally recognised high-quality ECE.

“It is horrifying to see our world-leading early childhood education undermined in the name of short-term savings,” she says. “Our tamariki deserve qualified, well-supported teachers. They deserve safe, rich learning environments. And parents deserve to know that their children are safe and getting the best possible start in life, no matter their postcode.”

Te Rito Maioha and Montessori Aotearoa New Zealand are calling on the Government to reverse this direction and invest in quality, not cuts.

“The funding review is underway; however it already seems to have been undermined, and the Minister’s outcome predetermined. We urge the Government to properly fund ECE, not by slashing teacher pay or lowering standards, but recognising the vital role teachers play and committing to equity and excellence for every child,” Mrs Wolfe says.

Media Contact

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

Notes:

• The advice requested by Minister Seymour was based on the knowledge that the ECE sector would receive only a 0.5% funding increase in Budget 2025, well below the 2.5% rate of inflation. The Ministry’s paper acknowledges this shortfall would place significant financial pressure on providers. In response, the Minister specifically asked for advice on how to reduce the sector’s largest cost: teachers.

• The ECE sector has already experienced a multi-year funding freeze prior to 2017 under the then National government leaving the sector approximately 11% behind CPI over the last 10 to 15 years.

• ECE is considered a public good with investment outweighing the costs. For more information on the need to sufficiently fund ECE services