For two years in a row, Labour’s Budget centrepiece policy has been a shambles, National’s Early Childhood Education spokesperson Penny Simmonds says.

“This is the second year in a row that Labour’s Budget announcement has failed to deliver for New Zealanders.

“Last year, Labour’s cost of living payment was a disaster from start to finish, reaching 700,000 fewer people than promised while being paid out to tens of thousands of people living overseas, and dead people.

“This year, most of New Zealand’s early childhood education sector has rejected Labour’s flagship policy of Budget 2023, saying it is ‘completely unworkable’ and will force them to hike their fees or close altogether.

“The last thing struggling Kiwi families need is for their childcare costs to increase even more while they try and manage their way through Labour’s cost-of-living crisis.

“This is a disaster for Labour and shows they are out of ideas and failing to deliver for New Zealand.

“While Labour now must go back to the drawing board, National already has a plan to ensure that childcare is more affordable, which is critical to helping more parents back into the workforce earlier.

“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.

“National knows that it is only through a strong economy that we can lift incomes, deal with the cost-of-living crisis and deliver the public services Kiwis deserve. That is why National is committed to supporting parents with the costs of childcare, so that they can return to work.”