Labour needs to fix ECE Budget botch-up

Labour needs to explain how they are going to fix their shambolic Early Childhood Education Budget announcement, which is putting ECE centres at risk of closure, National’s Early Childhood Education spokesperson Penny Simmonds says.

“Labour’s Budget centrepiece, offering 20 hours free ECE to two years olds, is a shambles with the majority of ECE centres saying it is ‘unworkable’ and if it proceeds without changes many centres will close.

“The inadequate funding set aside to pay for Labour’s grand promise will force centres to hike fees, opt out of fees-free altogether, or close their doors for good.

“This under-cooked policy is a huge embarrassment for Chris Hipkins’ Labour government. Labour must front up and explain how much it is going to cost to fix their botch-up.

“The last thing families need in a cost-of-living crisis is an increase in ECE fees or their local centre closing altogether.

“National knows that it is only through a strong economy that we can lift incomes, deal with the cost-of-living crisis, reduce interest rates and deliver the public services Kiwis deserve. 

“That is why National will deliver the FamilyBoost childcare rebate directly to parents to support young families with childcare costs. FamilyBoost will help 130,000 low- and middle-income families keep more of what they earn, with up to $75 more in their after-tax pay each week. 

“Under National, families earning up to $180,000 will receive a 25 per cent rebate on their early childhood education expenses, to a maximum of $3,900 per year depending on their income. 

“The Early Childhood Education sector welcomed National’s FamilyBoost childcare rebate.”