Education and care and home-based services funding review

Closed 6 Jun 2023

Opened 12 Apr 2023


Consultation on proposed changes

The Ministry of Education is undertaking a review of early learning funding relating to pay parity for certificated teachers. The Review’s aim is to identify and implement a preferred approach to better align funding for education and care services to their certificated teacher salary costs. 

As part of the Review, the Ministry consulted on a proposal to help fully implement pay parity for certificated teachers in education and care services (including hospital-based services and casual education and care services) with their counterparts in kindergartens. The Review also covers pay for coordinators in home-based services.  

Proposal for education and care services

For education and care services, it was proposed to replace the existing two main early learning subsidies for education and care services (the ECE Funding Subsidy and 20 Hours ECE subsidy) with two new subsidies.

  1. A Teacher Salary Subsidy (TSS): a subsidy with the amount broadly based on an entitlement of full-time certificated teacher equivalents (FTTEs) allocated to each service and the average teacher pay in each service.
  2. An Operating Subsidy (OS): a subsidy paid at fixed rates per child hour.

Proposal for home-based coordinators

For home-based coordinators, two options were proposed to improve their pay. The first option would separate out and redistribute some of the existing early learning subsidy funding for home-based services through a new Coordinator Salary Subsidy (CSS). The second option would uniformly increase existing subsidies to broadly reflect increased coordinator costs.

These two proposals retain core underlying principles and settings in the wider early learning funding system such as:

  • the cost of early learning being shared between the government and parents
  • funding being linked to regulated ratios and hourly child attendance, and
  • retention of existing weekly and daily funded hour limits.

Hui slides

Below are presentation slides from the recent hui to discuss these proposals.

Pay Parity slides – Education and Care Services [PDF, 911KB]

Pay Parity slides – Home-Based [PDF, 914KB]

Questions and answers from online hui

See below for answers to questions that have been asked at previous hui.

Pay Parity Consultation QA [PDF, 325 KB]

Pay Parity Consultation QA [DOCX, 88 KB]

Pay Parity Consultation QA part 2 [PDF, 266 KB]

Pay Parity Consultation QA part 2 [DOCX, 76 KB]

Home-Based Q&As [PDF, 203 KB]

Home-Based Q&As [DOCX, 40 KB]

Consultation documents


Consultation document for the Pay Parity Funding Review [DOCX, 1.1MB]

Summary of consultation document (English) [DOCX, 407KB]

Summary of consultation document (Te reo Māori) [DOCX, 446KB]

Summary of consultation document (Cook Islands Māori) [DOCX, 647KB]

Summary of consultation document (Samoan) [DOCX, 645KB]

Summary of consultation document (Tongan) [DOCX, 485KB]

Summary of consultation document (Tokelauan) [DOCX, 451KB]

Summary of consultation document (Niuean) [DOCX, 483 KB]


Consultation document for the Pay Parity Funding Review [PDF, 975KB]

Summary of consultation document (English) [PDF, 521KB]

Summary of consultation document (Te reo Māori) [PDF, 667KB]

Summary of consultation document (Cook Islands Māori) [PDF, 605KB]

Summary of consultation document (Samoan) [PDF, 670KB]

Summary of consultation document (Tongan) [PDF, 713KB]

Summary of consultation document (Tokelauan) [PDF, 725KB]

Summary of consultation document (Niuean) [PDF, 684 KB]

Next steps

The Ministry will now analyse the survey responses and submissions received and provide further advice to Ministers.

Any questions

If you have any questions about the consultation, please email