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 – New Zealand 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 more 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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Additional Requirements for Education and Care services and Hospital-based services

   

Requirement
Description
Relevant section
Template example

Staffing record
The staffing record is used by the Ministry to verify that the correct number of Certificated Teacher Hours has been claimed.
3-B-2
Yes

Copies of practising certificates
Copies of practising certificates are used by the Ministry to:

verify the certification status of teachers employed by the service

3-B-2
Yes

Copies of ECE qualifications
Services will need to provide certified copies of their staff’s qualificatio…

Step 1: all-day example

 

On 1 September, Rimu Road Crèche had two registered teachers (Hine and Susan) working. Hine was counted towards regulated (ratio) staff for 7 hours and 35 minutes. Susan was counted towards regulated ratio staff for 4 hours.

11 hours and 35 minutes can be rounded to 12 hours.

Sessional example

 

James Cook Kindergarten operates two sessions per day. Session 1 is for 3 hours and session 2 is for 2.5 hours.

A session of 2.5 hours will receive funding for 3 hours. 2.5 hours will be claimed as 20 Hours ECE hours and 0.5 hours must be claimed as Plus 10 ECE hours.

Example 2 – enrolled three days a week

The example below illustrates how the Three Week Rule Extension for Extended Non-Operation can be applied to a child enrolled for three sessions or days per week:

 

Step 1: sessional example

 

Huia Playcentre operates two sessions per day, each for 2.5 hours:

Note: A session of 2.5 hours will receive funding for 3 hours.

Example key

Use the key below to understand the shading and letters used in the example:

Days the child was not enrolled to attend. 

 
Days the child was enrolled to attend. 

 
Days the child attended their normal enrolled hours. 

 
Days the child was enrolled to attend and was absent. 

Days in the following month. 

Example 2: daily

The table below shows how parents could choose to allocate the 20 Hours ECE hours daily across a week:

Erin attends 8 hours per day, Monday to Friday.
Melanie attends 4 hours per day, Monday to Friday.
Hayden attends 8 hours on Monday, Tuesday and Wednesday, and 4.5 hours on Thursday and Fridays.

 ErinMonTueWedThuFriTotal

Hours enrolled
8
8
8
8
8
40

20 Hours ECE hours
4
4
4
4
4
20

Plus 10 ECE hours
2
2
2
2
2
10

Difference: DO NOT CLAIM
2
2
2
2
2
10

MelanieMonTueWedThuFriTotal

Hours enrol…

Example 1

The example below illustrates how the Three Week Rule can be applied to a child enrolled for one session or day per week:

Example 3 – enrolled five days a week

The example below illustrates how the Three Week Rule Extension for Extended Non-Operation can be applied to a child enrolled for five sessions or days per week:

 

Example 2

The example below illustrates how the Three Week Rule can be applied to a child enrolled for three sessions or days per week:

Additional Requirements for Kindergartens

Requirement
Description
Relevant section
Template example

Staffing records
The staffing record is used by the Ministry to verify that the correct number of Certificated Teacher Hours has been claimed.
3-B-2
Yes

Copies of practising certificates
Copies of practising certificates are used by the Ministry to:

verify the certification status of teachers employed by the service.

3-B-2
Yes

Copies of ECE qualifications
Services will need to provide certified copies of their staff’s qualifications…

Example

An example of the required attestation is shown below:

 

Example 3 – fewer days per week

Vijay is enrolled to attend an early childhood centre for five days a week.

Below is the February attendance register for Vijay:

 

The Frequent Absence problem is...The early childhood service must...Funding may be claimed for...Funding may not be claimed for...

Vijay has attended for fewer than five days a week in more than half of the weeks in February.
monitor Vijay’s attendance in March and if Vijay does not attend for five days a week for more than half of the weeks in March, his enrolm…

Example 3: conditionally enrolled child

Shane is permanently enrolled to attend from 8:00am-5:00pm Monday through Friday. Aroha is conditionally enrolled to attend from 9.00am – 3.00pm Monday through Friday Shane is absent on Monday. This means Aroha can attend for the day from 9.00am to 5.00pm

NameBookingHours attendedTotal hours attendedTotal claimable FCHs

Shane
8.00am – 5.00pm
absent
0
6

Aroha
9.00am – 3.00pm
9.00am – 3.00pm
6
0

OR
 
 
 
 

Shane
8.00am – 5.00pm
absent
0
0

Aroha
9.00am – 3.00pm
9.00am – 3.00pm
6
6…

Step 1: sessional example

 

On 1 September, Moana Valley Preschool held two sessions. At the morning session, two certificated teachers (Chris and Leilani) were working. Each counted towards regulated (ratio) staff for 3 hours.

At the afternoon session, one certificated teacher (Leilani) was working. Leilani was counted towards regulated (ratio) staff for a further 3 hours.

Moana Valley Preschool had 9 Certificated Teacher Hours for 1 September.

Educator absences

When an educator is not available (for example, due to illness), funding cannot be claimed if no care is provided. If there is a replacement educator, funding can be claimed only for the educator who provided alternative care. Funding cannot be claimed:

for the educator who was not available
if the parent/guardian chooses not to place their child in the care of the alternative caregiver/educator.

Step 2: all-day example

 

On 1 September, Kowhai Street Childcare Centre had six children aged two or over enrolled in their service. Four children aged two or over attended casually.

Management Position

A “management position”, in relation to Minimum Salary Scale for Management Positions, means all certificated teachers who are employed to work in one of the three following positions in an education and care service:

K2 - employed to be in charge of a service, and who is not a K3 or K4 employee
K3 - employed to carry out professional support, guidance, and administrative roles, and responsible for the management of K2 employees, under delegation from their employer
K4 - employed to be responsi…

Example 4: Shared child-place

Mae-Ling is enrolled to attend from 9:00am-4:00pm on Mondays. Six hours of funding can be claimed on Mondays for Mae-Ling’s child-place.

If Mae-Ling only attends from 9:00am-1:00pm one Monday, another child (Tom) may attend from 1:00pm-4:00pm.

Name Hours attendedTotal hours attendedTotal claimable FCHs

Mae-Ling
9:00am -1:00pm
4
4

Tom
1:00pm - 4:00pm
3
2

Example

Sione currently attends Huia Playcentre from 8:00am to 11:00am on Mondays, Wednesdays, and Fridays.

Huia Playcentre arranges for Sione to visit James Cook Primary School from 8:30am to 11:00am every Wednesday for one month before he begins attending James Cook Primary School.

Huia Playcentre marks their attendance register with ‘SV’ each Wednesday when Sione is on a school visit. Funding may be claimed for Sione’s enrolled hours as per the normal funding system.

If Sione is absent from Huia P…