The Reality in New Zealand: Childcare Won’t be of Aid to Majority of Parents with Small Children

The Reality in New Zealand: Childcare Won’t be of Aid to Majority of Parents with Small Children

According to New Zealand Prime Minister, Jacinda Ardern, via her speech and a press release issued, 54 percent of families in her country that rear children are going to be qualified to have subsidized childcare aid. Over 10,000 more children are going to be qualified to receive support under New Zealand’s expanded program, according to what Ardern has stated in the Labour Party conference.

The childcare subsidies were reported to have existed on a widespread basis in media sources as half of, or over, of the number of children are fast going to get subsidized care from the national government. The benefit just recently announced does sound useful for parties who can access it. However, these entities need to take note that there are complications associated with accessing this benefit.

Most of the 195,000 children enrolled in early childhood education are not going to be qualified to enjoy the said benefit. The many children who would get to access this benefit, though, are only going to experience the usefulness it brings on a minimal basis.

What is a Childcare Subsidy?

A childcare subsidy is a welfare support means for small kids that are accessible to low and middle-income families. This subsidy is accessible for preschool children enrolled in early childhood education programs. Additionally, this subsidy is also available for the benefit of before and after school care for older-aged kids.

The past national government administration stopped the distribution of parental income thresholds for the subsidy in 2010. Such a situation is an indication that, through time, fewer number of families have become qualified to receive this subsidy. The number of children that sought to get this subsidy for, in turn, has increased to more than half, having jumped in numbers to 52,600 from 24,800, according to an article published on

A part of an access review is for the Ministry of Social Development to make a decision as to whether or not to raise the thresholds and subsidy monetary amounts, beginning April of 2023, in accordance to what Prime Minister Ardern has announced. This project will cost $48 million annually once enforced.

The ministry has made the estimation, that with modifications, the subsidy available is going to be accessible for claiming for an additional 10,300 children. Such a figure brings the total number of children who will get the subsidy to around 35,000. The increase is only planned to be enforced on a one-time basis.