ECE funding handbook updates

The Early Childhood Education Handbook details payment of government funding to early childhood services.

14 March 2024

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below. 

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page.

ECE Funding Handbook

Two new funding conditions added to Chapter 3-B-2 Education and care services:

  • Split roles
  • Hours that count.

An amendment has also been made to the hours of work funding condition.

The new funding conditions are effective from 1 June 2024.

26 February 2024

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page.

ECE Funding Handbook page

Chapter 3-B-4: Home-based services

These changes align with regulation 62(2), which states that coordinators in licensed home-based services cannot work as a person responsible in more than one service at a time, and in no more than two licensed services in any month. 

This means that discretionary situations cannot be used to cover situations where the coordinator works across more than one network at a time. 

 

12 January 2024

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page. 

ECE Funding Handbook page

Chapter 6-1: Enrolment Records subcategory All Records Must Include   

To clarify that a child may be enrolled in a service even if a parent/caregiver cannot provide identity documentation and a reminder of current conditions.

Update of Appendix 2 Enrolment Agreement Form by relocating children’s official identification documents section to new non-mandatory section just before the Privacy Statement section.

 

14 December 2023

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page.

ECE Funding Handbook page

Chapter 13-4: Reporting to the Ministry  

To clarify when services should expect to receive correspondence from the Ministry for funding linked to Targeted Funding for Disadvantaged. 

Update to reflect reporting requirements and new contact information for sector questions.

1 September 2023

There has been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page.

ECE Funding Handbook page

Appendix 1

All Education and Care services and Hospital-based services funding rate tables

Additional table of funding rates for 1 December 2023 added. Updates to funding rates for 1 January 2024 and rates for 20 Hours ECE extended to 2 year olds from 1 March 2024.

All-day and Sessional Kindergarten funding rate tables

Additional tables of rates added for July 2023 and April 2024. Updates to funding rates for 1 December 2023 – 1 December 2024.

Appendix 4

This appendix contains the Minimum Salary Scales for education and care services. 1 December 2023 salary scale added.

These sections and chapters have been changed

Chapter 3
Chapter 3-B-2 Education and care services

Funding rates

Attestation of certified teacher’s salaries

Minimum Salary Scales for Certificated Teacher’s

Minimum Salary Scale for Management Positions

Minimum Salary Steps and Employer KiwiSaver Contributions

Determining teacher’s initial salary step

Attestation Period

Base Salary scale Example: November funding period

Parity Salary scale Example: March funding period

Extended Parity Salary scale Example: July funding period

Full parity Salary Scale Example: July funding period

Chapter 7
Chapter 7-2 Completing the RS3 form

Completing the Attestation for Certificated Teachers’ Salaries

Chapter 9
Chapter 9-6 Attestation of certificated teacher’s salaries

Policy

Attestation on the RS7 Return

Attestation Period

Funding rate outcome from Attestation Response

Example

Chapter 11
Chapter 11-2 Funding claim audits and record keeping audits

Services will be audited on

Funding and attestation adjustments

Glossary

New terms related to Parity salary scales added.

 

 

 

8 August 2023

There has been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page. 

ECE Funding Handbook page

Chapter 3-B-2: Recognised service

To clarify when services consider and recognise the previous teaching experience of a certificated teacher | kaiako (referred to as ‘teacher’) when determining their initial salary step.

Updated to reflect that recognised service means all hours of service.

Removed reference to “certificated relieving teachers employed continuously for 6 weeks or more”.

 

 

 

18 May 2023

18 May 2023

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page. 

ECE Funding Handbook page

Appendix 1

Updates to all funding rates effective 1 November 2023, 1 January 2024 and rates for 20 Hours ECE extended to 2 year olds from 1 March 2024.

Appendix 4

This appendix contains the salary scales for education and care services, including minimum salary scales from 1 January 2023 and updates that will be available from 1 November 2023.

Please note: an updated Attestation of Certificated Teachers’ Salary section of the RS7 for the November 2023 payment was available after the July 2023 payment has been completed.

14 March 2023

14 March 2023

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page. 

ECE Funding Handbook page

These sections and chapters have been changed

Chapter 3

Chapter 3-B-2: Certificated Teacher Absences and Discretionary Hours

  • Increase in discretionary hours from 40 to 80 per funding round.

21 December 2022

21 December 2022

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page. 

ECE Funding Handbook page

These sections and chapters have been changed

Chapter 14

Chapter 14-2: ECE Census

  • Added new data fields which will capture data to inform calculating more precise adult: child ratios. 
  • Staff turnover questions added in ECE Census 2022 will be asked for permanent staff only. 

13 December 2022

13 December 2022

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page. 

ECE Funding Handbook page

These sections and chapters have been changed

Appendix 1: Funding Rates

Updates to the All-day Extended Parity Funding Rates effective 1 January 2023.

Updates to the Sessional Extended Parity Funding Rates effective 1 January 2023.

31 October 2022

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE Funding Handbook page. 

ECE Funding Handbook page

These sections and chapters have been changed

Chapter 2

Section 2-7 (f): Recovery of early childhood education funding
  • Updated to describe Ministry actions for non-compliance.

Chapter 6

Chapter 6: Recording Enrolment, Attendance and Absence
  • Information in the overview about ELI has been moved to Chapter 14.
Chapter 6-1: Enrolment Records
  • Updated to include reference to privacy statement.

Chapter 14

  • New chapter inserted so references to collection of information and information about the ELI system is in one place.

Glossary

  • Updated to include definition of Early Learning Information (ELI).

Appendix 2: Resources and examples

  • Updated privacy statement for better clarity and transparency.

15 September 2022

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE funding handbook.

ECE Funding Handbook page

These sections and chapters have been changed

Chapter 3

Section 3-B-2: Education and Care Service
  • Updating to reflect the inclusion of Step 6 for services who wish to access the parity funding rates from 1 January 2023.
  • New funding example to demonstrate access to the extended parity funding rates.

Chapter 7

Section 7-2: Completing the RS3 form
  • Details on the updated Attestation of Certificated Teachers’ Salaries on the RS3 form and its funding implications.
Section 7-5: Emergency Closure
  • Update to the how services should claim funding for an Emergency Closure.

Chapter 9

Section 9-6: Attestation of Certificated Teachers’ Salaries
  • Details on the updated Attestation of Certificated Teachers’ Salaries on the RS7 return and its funding implications.

Chapter 11

Section 11-2: Funding claim audits and record keeping audits
  • Update on how a service’s funding rate will be adjusted if they are found to have not met the salary conditions related to their attestation for certificated teacher salaries.

25 May 2022

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE funding handbook. 

ECE Funding Handbook page

These sections and chapters have been changed

Chapter 3

Section 3-B-4 Home-based ECE services

This chapter has been amended to include the new requirements for standard funded services to have a percentage of qualified educators from 1 June 2022, brought in by the Education (Early Childhood Services) Amendment Act (No 2) 2021.

The quality rate requirements have been changed so the way of counting educators matches with the regulations. This means the count is now done on a monthly basis, rather than a weekly basis.

 The new sections set out:

  • The required qualifications for educators.
  • The percentage of qualified educators required and how this is counted each month.
  • The record keeping required to evidence that a service has the correct percentage of qualified educators.

 Sections relating to the quality-funded licence requirements from 1 January 2021-31 May 2022 have been moved to the end of the chapter.

Chapter 11

Section 11-1 Requirements for Home-based services
  • Additional requirements if your home-based service is funded at the standard funding rate.
  • Additional requirements if your home-based service is funded at the quality funding rate.

19 May 2022

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE funding handbook. 

ECE Funding Handbook page

These sections and chapters have been changed

Chapter 3

Section 3-B-2
  • Description of the new Extended Parity Funding Rates and the requirements to access these funding rates.
  • Extending the minimum salary scale for certificated teachers to eleven steps.
  • Adding the minimum salary scale for management positions and conditions related to its use.

Appendix 1

  • Updates to all funding rates effective 1 January 2023.
  • Addition of the new Extended Parity Funding Rates effective 1 January 2023.

15 December 2021

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE fudning handbook. 

ECE Funding Handbook page

These sections and chapters have been changed

Chapter 3

Section 3-B-4: Home-based ECE services
  • A change to the date under “New quality rate requirements”. Educators must now complete a Level 3 qualification by 1 June 2022.
  • A change to the date under “Upcoming changes to quality rate requirements: Percentage qualification requirements: The date for 50% minimum percentage of educators with required qualification is now 1 June 2022.

Chapter 6

Section 6-3: Attendance records
  • An additional section is included providing information about Electronic Attendance Records criteria which comes into effect on 1 February 2022.

Glossary

The following terms have been added to the Glossary: 

  • Authorised signature
  • Electronic signature

15 September 2021

There have been changes to the ECE Funding Handbook.

Information on changes made are detailed below.

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE funding handbook.

ECE Funding Handbook page

These sections and chapters have been changed

Chapter 2

Section 2-6: Funding Rates
  • Links the Attestation for Certificated Teacher Salaries to a service’s funding rates.

Chapter 3

Section 3-B: Teacher-led Services
  • Links the Attestation for Certificated Teacher Salaries to a service’s funding rates.
Section 3-B-1: The link between teacher certification and funding
  • Updates related to the use of education and care service and kindergarten.
Section 3-B-2: Education and Care Service
  • A change to the section title to education and care services, along with updates related to this change.
  • The addition of the minimum salary for certificated teachers and conditions related to its use.
  • Changes to the examples to reflect the new attestation questions.
Section 3-B-2a: Kindergartens
  • A new section explaining the funding conditions which apply to kindergartens.

Chapter 7

Section 7-1: Funding for new services
  • An explanation of the link between the Attestation of Certificated Teachers’ Salaries and a new service’s funding rate.
Section 7-2: Completing the RS3 form
  • Details on the updated Attestation of Certificated Teachers’ Salaries on the RS3 form and its funding implications.

Chapter 9

Section 9-6: Attestation of Certificated Teachers’ Salaries
  • Details on the updated Attestation of Certificated Teachers’ Salaries on the RS7 return and its funding implications.

Chapter 11

Section 11-1: Record keeping requirements
  • Addition of record keeping requirements related to the Attestation of Certificated Teacher Salaries.
  • Clarification of records keeping requirements for different service types
Section 11-2: Funding claim audits and record keeping audits
  • Addition of records a service will be audited on in relation to the Attestation of Certificated Teacher Salaries.
  • Clarification of the records a service will be audited on

Glossary

The following terms have been added to the Glossary:

  • Attest (Certificated Teacher Salary)
  • Base funding Rates
  • Kindergarten Teacher, Head Teacher and Senior Teacher Collective Agreement (KTCA)
  • Premium Funding Rates
  • Salary Scale
  • Teaching Council of New Zealand Aotearoa Standards | Ngā Paerawa.

The following terms have been updated in the Glossary:

  • Attest (20 Hours) – previously Attest, no change to definition
  • Certificated Teacher
  • Education and Care services
  • Teacher-led service.

The following term has been removed from the Glossary:

  • Early Childhood Education Collective Agreement of Aotearoa New Zealand (ECECA).

Appendix 1

  • Addition of the Premium Funding Rate Tables for all-day and sessional education and care services and hospital-based services.

Appendix 2

  • Updates to the Attestation of Certificated Teacher salaries sections on the RS3 form and RS7 return.

18 August 2021

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE funding handbook.

ECE Funding Handbook page

These sections and chapters have been changed

Chapter 3 - The ECE Funding Subsidy

Section 3-B-2 Teacher-led education and care services
Certificated teacher absences and Discretionary Hours

Services should maintain a list of certificated relievers who are available when certificated teachers are absent.

An increase to discretionary hours will apply to education and care services, casual education and care services and hospital-based services, from 1 June 2021 until 31 January 2022.  During this time the Ministry will accept up to 80 discretionary hours per funding period when certificated relievers are not available, provided that the record keeping requirements described in this section are met.

Between 1 June 2021 until 31 January 2022 education and care services, casual education and care services and hospital-based services, may record the hours worked by relievers who are Other Teachers as Certificated Teacher Hours for the purposes of the Staff Hour Count up to a maximum of  80 hours during a funding period.

Centres may choose which hours these apply to – they do not have to apply to the first 80 discretionary hours.

For Kindergartens, the Ministry will continue to accept up to 40 discretionary hours per funding period when certificated relievers are not available, provided that the record keeping requirements described in this section are met.

Services are required to submit a record of the number of discretionary hours they have used in a funding period to the Ministry.

If no discretionary hours have been used, then no submission is required.

Discretionary Hours Reporting

Every service that uses discretionary hours during the current funding period, must submit a record of the total number of discretionary hours used.

Discretionary Hours report [PDF, 129 KB]

Services that use an approved student management system (SMS) please contact your SMS provider if you require assistance in providing this information.

Services that submit paper-based RS7 or use ELI Web and have used discretionary hours during a funding period, must submit the Discretionary Hours report above along with their RS7.

Refer to the Glossary in this Handbook for definition of discretionary hours.

Glossary

Section 3-B-4 Home-based ECE Services

Clarification around the transition to the qualified home-based workforce.

New quality rate requirements: required qualifications

Extension to recognise grandparented educators until January 2022.

New quality rate requirements: calculating the percentage qualification requirements

From January 2021:

- 30% 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 training (up to a further 2 years).

- The remaining educators on the licence must hold at least 5 credits towards a required qualification a Level 4 or above.

Upcoming changes to quality rate requirements: percentage qualification requirements

The percentage qualification requirements for the quality funding rate will change each year until 1 January 2025 when there will only be one funding rate for home-based education and care.

The table below outlines the scheduled changes.

Date requirement is effective

Minimum % of educators with a required qualification

Maximum % of educators able to be in training or induction^

Educators with at least 5 credits towards a required qualification at Level 4 or above

1 January 2021

30%

20%

All remaining educators
(0-70%)

1 January 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 qualification can only remain in induction for a maximum of 6 months, or enrolled in training up to a maximum of 2 years.

Section 3-C-3 – Playcentres

Changes to Group Supervision requirements for standard funding rates for playcentres.

  • Playcentre Sessions (course 3 of The Playcentre Diploma in Early Childhood and Adult Education)
  • Playcentre Practice (course 4 of the Playcentre Diploma in Early Childhood and Adult Education)
Group Supervision requirements for standard funding rates

In order to receive funding at the standard rate, playcentres must have:

  1. A supervision plan approved by Playcentre Aotearoa and,
  2. At least one person on each session who holds a qualification gazetted as meeting the Person Responsible requirements for Playcentres.

Acceptable qualifications for a person responsible are set out in a notice in the NZ Gazette. These include:

  • Playcentre in Context (course 5 of the Playcentre Diploma in Early Childhood and Adult Education).
  • The Playcentre Diploma in Early Childhood and Adult Education.
  • A level 4 or above early childhood qualification recognised in the NZ Gazette(external link) notice as suitable for a person responsible in Playcentres.
  • An ECE teaching qualification recognised by the Teaching Council for the purposes of registration.

To be eligible for quality funding rates, licensed playcentres must meet one of the qualification options below. Where two or more different qualifications are required, these must be held by separate people.

Until 31 December 2021:

  • Course 2 is recognised and interchangeable with the Playcentre Educator Award (PEA).
Playcentres with no Person Responsible

Funding may continue at the standard rate for playcentres who do not have a person responsible, provided the breach of qualification requirements is being managed through a provisional licence process. This is a temporary measure (generally for up to 3 months) and will only be considered where there is a clear action plan in place to fill the person responsible role.

Playcentres should contact their relevant Ministry regional office as early as possible to discuss their situation. It is important to note that if a playcentre does not meet the conditions on any provisional licence then the licence must be cancelled.

Changing funding rates

Funding rate changes for quality rate funding are effective from the date the EC11 Form, with all evidence required to assess the request, is received by the Ministry.

21 September 2020

If you prefer to keep a Funding Handbook in hard copy, please discard all chapters, appendices and the glossary and replace them with the updated versions available to download on the right hand side of the ECE funding handbook.

ECE Funding Handbook page

These sections and chapters have been changed

Reference to the Education Council has been updated to the Teaching Council throughout the Handbook.

Reference to the Education Act 1989 has been updated to the Education and Training Act 2020 throughout the Handbook.

Chapter 3 – The ECE Funding Subsidy

3-B Teacher-led services

An update was made to the Introduction to clarify the qualification requirements for a person responsible in different service types.

Section 3-B-1: The link between teacher certification and funding
  • Changes were made to the requirements for Certificated teachers clarifying definition of an ECE qualified teacher.
  • Update to Becoming certificated directing teachers to the Teaching Council website.
  • Approved NZ teaching qualifications section has been added including a link to a list of approved teaching qualifications on TeachNZ website.
  • Removal of Primary and secondary teachers section.
  • Update to Overseas qualification section, removing reference to ‘primary teaching diploma or degree’ and replacing it with ‘NZ ECE or primary teaching qualification’.
  • Removal of Recognition of prior learning (RPL) section.
Section 3-B-2: Teacher-led education and care services
  • Certificated Teacher Absences and Discretionary Hours.
Section 3-C-3: Playcentres
  • The distinction made between Operating Requirements and Supervision Requirements.
  • Updates to Group supervision qualification requirements for standard and quality funding to reflect changes made by Playcentre Aotearoa to the qualifications they offer to parents.

Chapter 9: Completing the RS7 Return

Section 9-10: Declaration
  • Services were advised in December 2019 of the update made to the Declaration section of funding forms. This update now includes the amended and current wording.

Chapter 10 – Equity Funding

Section 10-2: The Equity Index 
  • Update to reference of EQI worked out based on 2006 New Zealand Census data.

Glossary

  • EQI update made to clarify EQI worked out based on 2006 New Zealand Census data.
  • Definition of Kindergarten Association has been added.
  • Removal of Recognition of prior learning (RPL).
  • Teacher-led services update made to clarify the qualification requirements for a person responsible in different service types.

Appendix 1

  • Changes to funding rates.

Appendix 2

  • RS7 and RS3 forms were updated to include the revised declaration.

Please note: you will need to clear your browser history to be able to access the updated forms.

Appendix 3

  • Addition of Appendix 3 to include a list of Kindergarten Associations who meet the legal definition.

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