For many New Zealand families, the cost of childcare is rapidly approaching – or exceeding – the price of private schooling. Some parents returning to work are now facing annual childcare bills of $15,000 to $20,000 and the early childhood education sector warns that these costs are likely to rise.
Rising Costs and Affordability
Stephanie Pow, founder of Crayon, which supports parents’ wellbeing in the workplace, stated that childcare costs are a significant financial burden for many families. She noted that for two parents earning full-time average wages with two children in full-time daycare, childcare expenses could account for more than a third of their income.
Data from the Household Economic Survey shows the average weekly cost of early childhood education rose from $25.71 in 2007 to $90.62 in 2023. Between the March 2025 quarter and December 2025, costs increased by 2.5%.
Government Support and Funding Concerns
The Family Boost, introduced in July 2024, has provided some relief, contributing to a 22.8% decrease in costs through the same period last year. Family Boost covers 40% of a household’s childcare costs, up to $1560 per quarter for those earning up to $35,000. Households earning between $35,000 and $57,286 per quarter can claim either 40% of their fees or a reduced amount, depending on their income.
The 20 Hours ECE scheme also provides subsidies for up to 20 hours of childcare per week. However, the Early Childhood Council, representing childcare operators, has warned that without changes to funding, costs will likely increase, or more centers will be forced to close. 443 centers closed between March 2022 and July 2025.
The Government established a Ministerial Advisory Group in June to review funding for early learning. The intention of the 20 hours scheme was for regular reviews to adjust funding to reflect increases in the cost of providing care.
Variations in Cost and Availability
Childcare costs vary significantly. Home-based education can range from $5 to $12 or more per hour, while Playcentres are the most affordable option. Kindergartens, benefiting from the 20 Hours ECE scheme, can charge as little as $3 per hour beyond the subsidized hours. Most other centers charge between $5 and $8 per hour for children not receiving 20 hours funding.
Finding available care can also be challenging. Stephanie Pow noted that parents should begin looking for childcare 12 months or more before they intend to enroll their child, due to long waitlists.
Frequently Asked Questions
What is the Family Boost?
Family Boost covers 40% of a household’s childcare cost, up to $1560 for households earning up to $35,000 a quarter.
How many childcare centers have closed recently?
443 childcare centers closed between March 2022 and July 2025.
What is the 20 Hours ECE scheme?
The 20 Hours ECE scheme provides a subsidy for up to 20 hours a week of childcare, at six hours a day.
As childcare costs continue to rise, how will New Zealand families balance the need for affordable care with the increasing financial pressures on household budgets?
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