Education
Childcare centres will get extra funding six months early after the Government brought forward a $40 million boost.
Associate Education Minister David Seymour announced the 1.5 percent subsidy increase will now come in July 2026, instead of January 2027.
"There are few things as important to Kiwi parents as affordable and quality ECE for their children," Seymour said.
The early payment responds to cost pressures hitting childcare services across the country. Without relief, centres face stark choices — pass costs to parents or cut services.
"When ECE services face cost pressures they have two options; pass costs on to parents, or give up features of their service that are no longer financially viable. Neither of those options are good enough for Kiwi families," Seymour said.
"ECE services shouldn't have to make either of those decisions. That's why we brought forward support. Usually it would come in January 2027, but we recognise the urgency. Services will get it in July 2026."
The funding boost comes alongside regulatory changes designed to cut red tape. The Government has reduced licensing criteria by almost 20 percent and simplified 58 others.
Seymour said the changes followed direct feedback from frustrated providers dealing with unclear rules and conflicting advice from different agencies.
"ECE in New Zealand should be affordable, high quality, and accessible. New Zealand's future relies on it," he said.
The sector has told the minister that rising costs are blocking those goals.
"The sector has told me that rising costs are getting in the way of those goals," Seymour said.
Other changes include moving regulatory functions from the Ministry of Education to ERO, and introducing graduated enforcement tools instead of all-or-nothing rules.
"These reforms make it easier to open and run high-quality centres, which means more choice and better access for parents. This is part of the Government's wider commitment to smarter, more effective regulation that encourages growth," Seymour said.
The Government has also introduced FamilyBoost, which has provided more than 92,000 families with up to $120 a week towards childcare costs.
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