KEY POINTS:
Around a third of three and four-year-olds enrolled at teacher-led pre-schools will not be covered by the Government's 20-hours free policy, the Education Ministry confirmed today. It released figures showing 38 per cent of centres covering 30 per cent of all enrolled three and four-year-olds had opted out of the scheme.
How have the childcare changes affected you? Here is a selection of Your Views:
Kirsty
It's important to understand that different types of centres get different funding. My son's private kindergarten runs under a sessional licence, offering 3 hourly sessions either am/ pm. The funding rules for 20 hours "free" mean that they are put in the same funding category as public kindergartens. The Ministry did their sums by adding up the average cost of providing minimum regulated standards, pooling all public kindergartens and private/ community sessional kindergartens together and averaging out costs. Of course this is ridiculous, because it means you are comparing public kindies who often own premises/ don't pay rates with private operators who pay high mortgages and rates. The outcome of this flawed concept is that all sessional centres (including public kindies, community sessional kindies and private sessional kindies) are funded at a top rate of $1.23 per hour or $3.69 per child per session (once you discount the pre-existing subsidy). This has resulted in my centre being offered $3.69 to cover what we pay $20 a session for ( a shortfall of $16.31) What sane business owner would want to rely on a donation or voluntary payment of $16.31 per child per session?
M Williams
I feel that the government's political agenda in maintaining their position that this is a "20 hours free" policy must have taken a higher priority than genuinely delivering assistance to parents of young children. Even a superficial scrutiny of the proposed policy should have set ministerial alarm bells ringing as to its operational feasibility. Deciding an hourly "rate" based on an average across NZ was never going to work as by definition some centres require a higher rate to operate. Whether that's because their costs are higher (rent, number of staff) or because they aim to deliver a higher profit margin than other centres, who can say, and that should not be the issue in question. For those parents whose chosen childcare centre cannot offer 20 hours at that rate, why not allow parents to claim this amount back in their tax returns if they can supply child's birth certificate and yearly financial statement from their centre showing total amount paid and total hours child care delivered? This puts the money directly in the hands of those it was intended to help, and means that childcare centres do not have to expose themselves to the risks of unsecured "top up donations" from parent (which I understand in the case of schools are only paid around 70 per cent of the time).
H (Christchurch)
Why is everyone saying this is the governments fault? They have agreed to give centres an amount of money for 3/4 year olds for them to provide care for them for 20 hours per week. But due to lovely things like Rogernomics ECE is not free and is run by business's for profit! Of course they are going to say they need to cover there 'running' costs and not opt into the scheme, go and find a community based ECE rather than one that is run for profit. You are dreaming if you think they put your children first, all they care about is low over heads and maximum profits.
Mary Brown
I agree with your article and there are other issues around this whole funding saga which still see's families having to pick up the tab. There have been articles in numerous publications which have touched on private owners of childcare business. There has never been a big investigation into the profits they make? Forward Steps (Australian Macquaire Bank) is buying up NZ Childcare centres. There are a number in NZ who are on the share market. Privately owned PORSE Network Group funding is at $14million annually. The figures they quote are often / mostly untrue. Their profits are obscene. Mothers could be paid to stay at home with their children instead of going out to stack shelves in a supermarket which just covers their childcare fees - while the childcare service receives what the parent(s) pay and what the taxpayer pays ($6 per hour for an under 2-year-old) Private childcare services are financially audited maybe 5 yearly? They are funded in advance of the care being delivered then washed up quarterly. Private business owners are making a fortune and the government are not interesting in addressing the system. Profit is not a dirty word but taxpayer funded excessive profits is another story. Please check the latest rates with Ministry of Education. All financials of childcare organisations are available to the public as they are govt funded. Check out company and trust owners and properties purchased with tax payers funds that's why a lot of them can't provide free childcare as they have such huge outgoings on properties.
Andrew Atkin
Free childcare? A few decades ago Dad could support his family on one income - then the government created more and more "free" services to win elections. The end result is a dis-optimised (probably) transfer of productivity from the domestic-economy to the national-economy. Are you happy with the outcomes? Or do you prefer the "good old days" when no one needed state-funded daycare anyway? I suppose that as long as governments need to win elections, the problem is only going to get worse.
Brigitte
I have two children in part time day-care in Auckland (Rodney District). Their centre has decided not to opt into the supposed 20 hour free scheme as it wouldn't even begin to cover their costs. So not only do my children miss out but we are now looking at their costs going up approx 3-4 per cent next month to cover the extra 1 week paid leave that was introduced earlier this year and the new KiwiSaver scheme.
Westie
I find it interesting to read that the proportion of childcare centres taking up the 20 hours 'free' childcare is, at the higher end, 95 per cent in Tasman district, compared to only 50 per cent in Auckland. Working families in the heaviest populated centre are actually being penalised, a typical decision made by non-thinking politicians sitting in Wellington I'd say.
Ostracised?
Our centre has added an optional charge which we have refused to pay out of principal as this was promised as "20 Hours free" childcare. Our centre is obviously part of a profit making organisation so our concern is not that there is lack of money to cover costs but is there lack of money to make "profit"? We feel this is different to the optional "School fees' we pay each year as we are happy to do this as you know schools are not for profit. If our centre was able to provide us with proof that the optional charge was in fact needed to cover costs as opposed to covering profits we would be more than happy to pay this. We have since found out we are one of a handful of parents refusing to pay this optional charge and wonder if our child will be ostracised for this. Only time will tell.
Megan (Auckland)
My Parnell-based day-care has not opted in to the 20 free day-care hours scheme, because they say that it would reduce the quality of care provided to our children. I'm really disappointed by this response, whilst other parents out there are receiving a portion of their day-care free or discounted we receive nothing. Many think because our child attends a day-care in Parnell that we wouldn't appreciate some kind of a saving each week? How is that fair? I love the teachers/caregivers at our day-care and don't want to have to move my child, but I wish the administrators had given us a fair chance. We were not even given the opportunity to express our opinions on paying the difference between what the government is offering and the actual cost to operate.
I hope the government continues to work with our day-care operators to do whatever they can to find a compromise so that everybody has the opportunity to benefit from this scheme.
Silver Fox
So the Labour party had a big promotion for the party faithful over the weekend with all the vote-catching handouts. Ms Clark stated that the funding for the 20 hours childcare was a "fullcost" model. She said "The Government pays the wages", "The Government pays for the operating cost", "The Government pays for the cost of capital and the curriculum costs for the regulated standard." This as well as the $1000 handout for Kiwi Saver. Where does the government get all this money from? No, they don't have a whip around amongst their supporters but take it from you and I, the taxpayer. Think about it.
Mark (Auckland)
To all the parents who have been sucked in by this "free" childcare, why don't you send the bill to the Labour Party and let them pay for it? Also, send them an English dictionary and highlight the meaning of free.
Robyn
It won't effect me because I strongly believe children should be fully supported by at least one parent - and I don't care if its the mother or father. That great god-mother Helen, along with many in her dysfunctional family we call "The Government", haven't the slightest idea as to how to bring up a child. Her Lesbian, Gay or Green advisors are no better informed. Again the sensible solution lies in the taxation structure, not State Control.
pCb (Auckland)
Anyone ever read the story of the Emperor's(PM's?) new clothes? Only no one listens to the boy yelling the truth.
Annoyed Taxpayer (Auckland)
I was more then a little annoyed to receive a letter "signed" by the Prime Minister describing the government's three new policies, one of these being the "20 hours free childcare for 3 and 4 year olds" (the others being the subsidised GP visits and KiwiSaver). Is this some type of targeted early electioneering campaign? I am in the 25-44 year age group and do have a young child and like everyone else (except the over 65's) could join KiwiSaver. I work full-time but the day-care my child attends have not signed up for the 20 free hours.
SJ (Mt Albert)
Stop whinging people and get involved - the $'s involved makes it worth it. We got involved with the parents committee for our provider and literally had to take them through the process as they were opposed to joining. Voluntary charges may be necessary to cover the extra hours over the 6 hours per day "free" entitlement. Also having higher staff ratios than legislated, lunches if provided, extra-curricular activity, higher rents that the centre may have due to location adds to their cost. With those who get ECE and extra charges, too many people are talking about the glass being 20 per cent empty not 80 per cent full. Make your feelings known (not here, but with your provider). Sometimes you have to do something for yourself. Get past the politics.
AA
At my daughter's childcare the 20 free hours have been adopted - for now. The funding for 20 free hours doesn't quite reach the previous funding + parent fee for some children or only just matches it for others, depending on how many hours they are in care. This is using the 80-99 per cent level of registered teachers. As the teachers reach full registration their salaries will increase and costs will rise. On top of all other cost rises. The 20 free hours, while a great subsidy, should not be given the label free - it just doesn't work. Change the label or up the funding, surely it's as simple as that.
Tim
I can hardly believe the news that our childcare centre handed to me today. Prior to 1st July the cost of childcare for our son was $17 per week, only part time hours of course. If the Labour Government really is paying for 20 hours per week why is it that the cost to us now is still $145 per week? A saving of only $25 per week! I'm not going to accept that so I've told our childcare centre that as of today I choose to opt out of the scheme all together because I do not want them to receive payment for 20 hours of "free" childcare in my name if they are not going to pass that on to me. Someone is getting robbed here and think it's us.
Tehay (Auckland)
Well as a solo father of a four-year-old boy full time employed I was looking forward to 20 hours free day-care as stated by our wonderful government but all they gave me is false hope! Because that had to be one of the worst forms of false advertising I've been personally involved with but it does sound better than 20 hours subsidised care with is how the truth is stated they should just abolish the whole idea till they can help all working parents rather than there own political agendas.
Listen to the children
Here's my story. I remember being at home with my mother a year before I went to kindergarten. I was extremely happy. When I went to kindy - game over. I remember the constant stress of every day having to be put in that environment, with those trained but vacant and indifferent caregivers, and also those slightly lunatic kids who I sensed were capable of just about anything (the type of kids that swing cats around by their tails). In other words, I think it's great that the government isn't paying up for child care - I know young children need to be with their mothers. Oh and by the way; there is no way to define let alone measure 'quality' early childhood care. If you buy into the governments b.s. on that one, then you -wittingly or not - accept letting the government mold your child into their own subjective ideology of what your child should be. And going by what I have studied, believe me, you don't want to do that.
Auckland Parent
Further to your comments Andrew about finding it hard to find a place opting into Free ECE for your three-year-old, I think you may be in a similar(inner West?) area of Auckland to our family. We have a three- and a four-year-old, so I have been looking for centres that are opting into Free ECE as even though I only work three days a week in paid employment, our childcare bill is over $15,000 a year. Free ECE will make an incredible difference to our household income and I am so very grateful for it. I found a new centre opening up opposite St Lukes (Top Kidz, Waegner Place) and they are opting into Free Ece. As of last week they have places for three- and four-year-olds with no waiting list. I'm not affiliated with / endorsing this centre in any way,(in fact we are staying at our current centre as they have just decided to opt in) but I'm just passing on the info so if you want to you can go and check it out and make up your own mind. Good luck.
Auckland
At our centre we would love to come up with a solution to offer 20 hours free. The most important factor to realise is that "20 hours free" is funded to the centre for 6 hours per day. We are an all day centre open and staffed from 7.30-5.30. Children come to our centre because generally the parents work full days. An average child is at the centre from 8am-5pm. That's 9 hours per day. Under the 20 hours free scheme we will only be funded for 6 hours per day on the first 3 days (18 hours) and 2 hours on the fourth day (total 20 hours). We have to charge parents for the shortfall of 3 hours a day where children are still attending but we are not receiving funding. This charge has to be compulsory for us as we have to pay for staff for those final 3 - 4 hours. We would like opt in to the scheme and charge a top up daily rate and save hardworking parents about half their currant fees but the government is making this very hard by insisting on saying it's free. It is free, but only for 6 hours per day. If you want full day care then the centre HAS to charge for the balance of the full day and unfortunately this charge has to be compulsory.
More Lies
Once again, another vote-grabbing lie with nothing at all for the people that voted for it - yet another reason to boot out Helen and her lame-duck Labour Party.
Wade-AKLD
We feel obliged to pay the additional fee set by our child care centre. The overall impact is that this policy has reduced our child's fee from $160/week to $105/week. OK so we make a $55/week saving- that's great. But the government has not delivered '20 free hours'. This is a complete lie Steve Maharey. Mate tell it like it is, it is a 'subsidised child care scheme'. We would be better off with a tax cut at the 39 per cent threshold, but no Labour doesn't favour personal responsibility anywhere in society does it. Labour believes it can dictate how and where people can spend and save their money and at the same time intentionally mislead and distort the truth to NZers on how they are doing it.
Paraparaumu
Our child will be 3 near the end of the year and we have been given the forms to fill in. As with others, the 20 'free' hours incurs additional costs, which we will have to pay. These centres get paid enough for their services (which on occasions can be very poor), and now they want to charge us more for a 'free' service.
Tane
I find National's criticism of this policy very rich. For all the noise they've made attacking this policy they've yet to come clean on what they would do if elected to government. My guess is they'd scrap it and let the market decide which children are worthy of early childhood education. Perhaps that's why they're all bluster and no answers on this one.
Si
The "free" ECE has a huge effect. It means $160 per week in the hand now available for mortgage repayments and to offset KiwiSaver. No promised tax cut will deliver this form of support. You have to look at those opposed to ECE. Childcare centres with a low ratio of qualified staff will be the ones struggling. What we currently pay in childcare almost equates to private education at a primary/secondary school level - but with no requirement for qualified staff ratios.
Auckland
I am grossly offended by the way in which this scheme has been advertised, touted and described as 'free 20 hours' and with terms like 'optional' charges' when it is a subsidised scheme and the optional charges are not optional at all. Even today it is actually still undecided (or we haven't been informed where they stand) at our centre. They have effectively on-charged any risk of shortfall to us parents under the guise of an 'optional fee'. In our centre if not enough people accept to pay the 'optional' charge we have been told they will not be participating. This policy has been devised with the intention of offering a little of what was promised and the parents being forced into taking the small savings and paying the 'optional' fee rather than jeopardise no savings at all so now wonder 70 per cent accepted under duress. Last tax year I paid over $38,000 in taxes personally and my partner paid approx $20,000 so we could strive to get a house in the over inflated Auckland market. For the privilege of both working full time and paying those taxes our childcare fees were approx $10,000 which tends to be the average rate in the 50 per cent of Auckland daycares that have rejected it where the rent/costs are higher. If it is accepted and we have to pay the optional fee we save $1500 approx a year. The optional fee because not all parents are paying it therefore makes the ones that are paying it subsidise those that don't. Effectively I am feel I am subsiding those that chose not to pay the optional charge not the government. I am also subsiding those that have their child in the day-care on a part time basis as the optional fee affects the full time children's fees more. The scheme therefore encourages the part time children into the day-care and provides a cheap babysitting service and further penalises the full time workers that are contributing a considerable amount more in taxes also.
Bernie (Auckland)
The creche my two sons attend has accepted the subsidised hours now on completion of the form by the Parent/caregiver. It's going to make a huge reduction in what we pay each week - Thanks :-)
Andrew
I have a three-year-old boy and have been trying to find the 20 hours free day care. I called a number of the centres listed on the Team Up website. None of the teacher led centres in my area were participating in the scheme. The best I could do was Pt Chev kindy with a waiting list starting 3 years and 7 months. Other kindies had longer waiting lists. Well done the Government for a poorly thought out and executed scheme. Free for a 3-year-old does not exist in my part of Auckland.
Mike (Christchurch)
A vote grabbing lie. My three-year-old misses out as our pre-school can't afford it. Another reason not to trust this Labour Government
Concerned parent
My three-year-old goes to East Coast Bays community crèche two mornings per week. They said they are taking up the free 20 hours but still will be charging $10 per session, so obviously not free! Very angry the entire thing is ridiculous. My other option is Glamorgan kindy which once again say are taking up the 20 free hours but are charging still about $5 per session. I'm so annoyed about the whole thing and incredibly disappointed.
