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Early Childhood Education Sector on the Brink

15 October 2025

“Early childhood education is the cornerstone of lifelong learning,” says Nikki Parsons, General Manager at Te Rito Maioha. “Investing in quality ECE isn’t just about supporting tamariki today, it’s about strengthening the future of our entire education system; having a vision and implementing it.” That foundation is now under threat.

New analysis from the Early Childhood Education (ECE) Sector Partnership reveals that around 400 centres, approximately 8% of the national network are at risk of closing within the next 12 months. Many of these services operate in regional and low-income communities where no alternative options exist, creating a looming crisis for families and educators alike.

“To put this into perspective,” says Mrs Parsons, “more than 200,000 children attend an early childhood service every day. ECE not only enables parents to participate in the workforce, but more importantly, it prepares tamariki with the skills and confidence they need to succeed in the early years and through school. This critical role was acknowledged by the Minister of Education on Monday.”

“Early Childhood (Education) is extraordinarily important for building good literacy skills because we know that more and more children aren’t getting read to at home or spoken to. They’re coming into ECE and into school with poor oral language and poor reading skills and the role of ECE is so vitally important, which is why we have made sure that early numeracy and literacy is being embedded in ECE,” said Minister Erica Stanford at a standup with the Prime Minister.

One proposal raised with the Education Minister was to redirect the underspend from the FamilyBoost initiative to help struggling ECE providers stay afloat. Minister Stanford responded that this was “something providers would need to talk to Minister Seymour about.”

“The sector has been under strain for too long and it is getting worse, we are now calling for someone in the Government to take responsibility” says Mrs Parsons.

“If the Government is serious about lifting education standards, it must invest in ECE and the qualified teachers who build the foundations for lifelong learning. Either Ministers take responsibility and act, or they risk watching the foundation of our education system crumble.”

Sector leaders are calling for strategic, sustained investment to strengthen the entire ECE system.

“It’s time for the Government to stand up rather than deflecting, and do something before it’s too late,” says Mrs Parsons. To our government leaders, it is your job to ensure every child has affordable access to high-quality early childhood education; it’s a right not a privilege!


Notes

The funding crisis has been compounded by Budget 2025’s minimal 0.5% increase, well below the rate of inflation. This shortfall has left services struggling to meet rising costs, forcing many to consider fee increases that parents simply cannot afford.

The ECE sector has experienced chronic underfunding for many years. While the current ECE Funding Review is a welcome step toward long-term solutions, providers require immediate relief to remain viable before any outcomes from the review can take effect.


Media Contact

Rob McCann - Lead Communications Advisor | Kaitohutohu Whakapā Matua
022 411 4560
rob.mccann@ecnz.ac.nz

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