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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The following example shows how a service could claim funding where a child receiving 20 Hours ECE shares a child-place with an Under Two child.
Melanie is receiving 20 Hours ECE and is enrolled for five hours on Monday to Friday, from 8am to 1pm.
Erin is one-year-old and is enrolled for four hours on Monday to Friday, from 1pm to 5pm.
ChildHoursMondayTuesdayWednesdayThursdayFriday
Erin
Under 2 hours
4
4
4
4
4
Melanie
20 Hours
5
5
5
5
Plus 10 ECE hours
5
Total hours claimed…
All Equity Funding is ‘tagged’ and must be spent with the equity objectives for participation and quality in mind.
Below are some suggestions for uses of Component D funding:
provide assistance to attend the service (for example, transport assistance)
provide more professional development opportunities for staff
upgrade resources
introduce staff recruitment and retention initiatives
assist in meeting the additional costs of service delivery.
These are just some of the ways Component D Equity…
Huia Playcentre operates two sessions per day, each for 2.5 hours:
The example below illustrates how the Three Week Rule can be applied to a child enrolled for five sessions or days per week:
From 1 January 2024:For standard-funded licences:
60% 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:
80% 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…
Kōhanga whānau can also be attested.
Attestation was originally introduced as an interim measure for whānau who were for example native speakers: this was in order to give the Trust time to establish its own qualification (i.e. Tino Rangatiratanga Whakapakari Tohu).
Attestation should be continued to acknowledge the skills of whānau who enrol their tamariki in kōhanga reo.
Optional charges can only be requested for:
aspects of provision that are not required by regulation
additional staff beyond the minimum regulated adult/child ratios
items that parents may either provide for their own children, or pay for the service to provide.
Services must ensure that the activity or item offered exceeds/is over and above what is required by regulation.
For example:
specific teaching resources such as a dance or music teacher
excursions and entrance fees
transport
sunscre…
Caleb is enrolled in a home-based service from 7.45am to 3.45pm on Mondays and Fridays, and 7.45am to 12.45pm on Tuesdays, Wednesdays and Thursdays. He is also enrolled in kindergarten from 12.45 to 3.45pm on Tuesdays, Wednesdays and Thursdays. His parents choose to allocate 20 Hours ECE hours to both the home-based service and the kindergarten. This might look like:
Home-basedMonTueWedThuFriTotal
Hours enrolled
8
5
5
5
8
31
20 Hours ECE hours
2
4
4
4
14
Plus 10 ECE hours
4
1
1
1
6
13
K…
A service that operates without a regular roll, for example, services at ski fields.
Where a certificated teacher is employed part-time in a teaching role and part-time in a non-teaching role, the service provider must pay the certificated teacher at least the relevant salary amount on the applicable Minimum Salary Scale for Certificated Teachers when they are employed in a teaching role.
Where a certificated teacher, employed in a non-teaching role, engages in a teaching role regularly (for example to cover breaks), they should be paid at least the relevant salary amount on th…
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…
From 1 January 2021:
The percentage qualification requirements are based on a count of active educators in a licence.
An educator is considered ‘active’ in a home-based licence if they are providing regular early childhood education and care to children enrolled on that licence.
An educator may still be considered ‘active’ if they do not provide education and care for a short period of time; for example, if they are sick or on holiday, or due to an emergency event like flooding. In these situ…
Hine and Jocelyn work at Rimu Rd Crèche from 7am to 3pm every day.
From 7am-8:30am, there are usually only a few children present. This means only one person is required to meet the regulated (ratio) staff requirements.
The regulated (ratio) staff hours from 7am-8:30am = 1.5 hours. Only include those staff who are required to be present to meet regulated ratio requirements during that time period. For this example only include either Hine’s or Jocelyn’s hours.
Hine, Jocelyn, and Alex work at Rimu Road Crèche from 7am to 3pm each day. Hine is a certificated teacher. Jocelyn and Alex are not certificated teachers.
From 9am - 11am there are 12 children present. Two people are required to meet the regulated (ratio) staff requirements. From 9am-11am Hine’s hours are counted as Certificated Teacher Hours. Jocelyn’s hours are counted as Other Teacher Hours.
Alex’s hours are not counted because only two people are required to meet the regulated (ratio) sta…
Follow the diagram below to see an example of how a service’s Staff Hour Count is used to determine their funding rate.
Kowhai St. Childcare Centre records the daily number of Certificated Teacher Hours and Other Teacher Hours on their Staff Record.
⇩
Kowhai St. transfers the daily Certificated Teacher Hours and Other Teacher Hours for the funding period from their Staff Record to the Staff Hour Count section of their RS7 Return.
⇩
Kowhai St. provides its RS7 Return to the Ministry of Educa…
Kowhai Street Childcare Centre completes their November RS7 Return with their Certificated Teacher Hours and regulated (ratio) staff hours for June, July, August and September.
Kowhai Street attests that all of their employed certificated teachers are being paid at least the amount specified at Step 1.
The Ministry calculates that the percentage of Certificated Teacher Hours for June - September for Kowhai Street Childcare Centre was 67%.
Kowhai Street is placed on the 50-79% base funding rate.…
Kowhai Street Childcare Centre completes their March RS7 Return with their Certificated Teacher Hours and regulated (ratio) staff hours for October, November, December and January.
Kowhai Street attests that all of their employed certificated teachers are being paid at least the amount specified at Step 1 to 6.
The Ministry calculates that the proportion of Certificated Teacher Hours for October – January was 82%.
Kowhai Street’s wash-up funding for October, November, December and January is pai…
Kowhai Street Childcare Centre completes their July RS7 Return with their Certificated Teacher Hours and regulated (ratio) staff hours for February, March, April, and May.
Kowhai Street attests that all of their employed certificated teachers are being paid at least the amount specified at Step 1 to 11 + Management
The Ministry calculates that the proportion of Certificated Teacher Hours for February – May was 92%.
Kowhai Street’s wash-up funding for February, March, April, and May is paid at th…
Kowhai Street Childcare Centre completes their July RS7 Return with their Certificated Teacher Hours and regulated (ratio) staff hours for February, March, April, and May.
Kowhai Street attests that all of their employed certificated teachers are being paid at least the amount specified in Full Parity Salary Scale (Full Step 1 to 11 + Full Management Steps).
The Ministry calculates that the proportion of Certificated Teacher Hours for February – May was 86%.
Kowhai Street’s wash-up funding for F…
A fee is a payment that is required as a condition of enrolment and can be enforced.
Enforcement is when a service withholds or withdraws enrolment, or withholds or withdraws parts of their service (for example children not permitted to take part in certain activities), or makes debt recovery.
