ECE Funding Handbook
Welcome to the ECE Funding Handbook. This handbook is issued under section 548(5) of the Education and Training Act 2020.
Funding of certain services and certified playgroups – NZ Legislation(external link)
The funding paid to licensed services is paid subject to the terms and conditions set out under this handbook and must be complied with. The terms used in this handbook are based in the Education (Early Childhood Services) Regulations 2008.
This handbook is designed to be a 'one-stop-shop' of everything you need to know about early childhood funding, including:
- the ECE Funding Subsidy
- 20 Hours ECE funding
- equity funding
- the annual top-up for isolated services
This information does not apply to certificated playgroups
The information in the Funding Handbook does not apply to certificated playgroups.
These services should contact their Ministry regional office for further information.
Local Ministry offices
Download the ECE Funding Handbook
If you would like to print a copy of this handbook, refer to the list of downloads in the contents section where you will find downloadable PDF versions of each chapter.
ECE Funding Handbook downloads
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for 2023
Table 14: Equity Funding rates for eligible services from 1 January 2022.
Equity Funding Rates (including GST)
Rates from 1 January 2022
Rates from 1 January 2023
Rates from 1 January 2024
Equity Funding Component A: Low Socio Economic (per funded child hour)
EQI 1
$1.06
$1.09
$1.15
EQI 2
$0.82
$0.84
$0.88
EQI 3
$0.47
$0.48
$0.51
EQI 4
$0.22
$0.23
$0.24
Equity Funding Component B: Special Needs Funding (per funded child hour)
EQI 1
$0.50
$0.51
$0.54
EQI 2
$0.31
$0.32…
Table 15: Targeted funding for disadvantage rate for eligible services from 1 March 2022
$ per targeted hour (including GST)
Rate from 1 March 2022
Rate from 1 March 2023
Rate from 1 March 2024
Eligible services
$0.37
$0.38$
$0.40
… training or induction^
[Unqualified]
Educators with at least 5 credits towards a required qualification at Level 4 or above
[Partial]
1 January 2021
30%
20%
All remaining educators (0-70%)
1 June 2022
50%
20%
All remaining educators (0-50%)
1 January 2023
70%
20%
All remaining educators (0-30%)
1 January 2024
80%
20%
This category no longer applies
^ Educators who do not yet have credits towards a required qualification.
Educators who join a quality funded licence without a completed q…
The following sections outline the quality rate requirements in place from 1 January 2021 until 31 December 2023. They will remain here for information purposes until the next phase of transition on 1 January 2025. Services may still be audited on periods covered by these requirements so should ensure they have compiled at all relevant times.
… during the next funding payment.
For information on how to complete the Attestation of Certificated Teachers’ Salaries for the RS7 return see Section 9-6.
Note: Funding conditions related to the Full Parity Salary Scale are effective from 1 November 2023.
From 1 January 2023:For standard-funded licences:
30% of educators in a standard funded licence must hold a home-based service qualification.
There are no qualification requirements for the remaining educators.
For quality-funded licences:
70% of educators in a quality funded licence must hold a required qualification.
Up to 20% can either be in induction (first 6 months on the quality licence) or enrolled in training (up to a further 2 years, or 4 years if they are working towards an ECE teac…
