Child-care costs pressure for families

An 11.7% increase in the cost of early childhood education has put increased pressure on the family budget.

Statistics New Zealand consumer price index figures show ECE costs increased 11.7% in the year to June, while primary and secondary costs increased 5.1% and tertiary 6.4%.

The New Zealand Education Institute (NZEI) said the increased costs were due to Government funding cuts in last year's Budget.

The $280 million cut, over four years, meant funding was only provided for up to 80% of a centre's qualified staff, forcing many of those with 100% qualified staff to increase parent fees.

Dunedin Kindergarten Association general manager Christine Gale said the association lost $1.2 million, or 15%, of its funding in February and had increased its fees by 25%.

"For some families, any increase is significant because they are on such tight budgets," she said.

While parents understood the increases were necessary, for others it meant reducing their children's hours in ECE to maintain budgets.

University of Otago Childcare Association director Kay Lloyd-Jones said fees in its four centres increased 25% and about 25% of parents had decided to reduce their children's education hours.

NZEI national secretary Paul Goulter said families should not be forced to sacrifice their children's education to make ends meet.

"An 11.7% increase in the cost of early childhood education is significant and represents one of the largest increases across all the goods and services measured [in the CPI]. What it means is that early childhood costs are contributing significantly to overall inflation.

"The tragedy is that many families faced with trying to pay for the basics will be forced to take their children out of essential early childhood education because they can no longer afford it.

"It's not a choice the Government should be forcing on families and it goes against its own rhetoric of trying to increase participation in early childhood education, especially for children in low income areas," he said.

The union called on the Government to reinstate funding to ECE services, commit to a target of 100% qualified staff, and invest 1% of GDP in the sector.

- ellie.constantine@odt.co.nz

 

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