Preschool bonus to get parents working

By STUART DYE, education reporter

Every 3 and 4-year-old in New Zealand will be entitled to 20 hours' free education each week under "landmark" early childhood plans announced yesterday.

In the biggest change in early childhood education since 1989, Education Minister Trevor Mallard promised the $483 million injection over four years would make it easier to claim entitlements and more profitable to work while children are in early learning.

From July 2007, children aged 3 and 4 will be entitled to 20 free hours a week at teacher-led community centres and kindergartens.

Centres run for profit or led by parents, such as playcentres, will not be funded for the free hours.

The move followed international research showing that early education was vital in improving a child's performance later in life, he said.

The scheme's introduction is being held off for three years to allow time to train teachers and ensure there is enough building capacity.

A $365 million education package, to be spent over four years, will reward quality teaching, lift teacher qualifications and improve teacher/child ratios.

All centres will be paid more, including private providers, and there will be top-ups for rural centres. Extra funds will also be available for early childhood education for special needs children and the development of professional books and standards for the sector.

But parents will feel the Budget most tangibly in a $118 million package aimed at meeting childcare costs.

At present, those earning $620 gross or more each week are not entitled to any subsidy for early education for one child. From October 4, a parent-of-one would have to earn more than $930 to cross the subsidy threshold. The figure rises to as high as $1330 if a family has three or more children.

Working parents with a weekly income of less than $770 before tax will receive the maximum subsidy of $2.84 per hour - against the current levels of $520 a week and $2.58 per hour.

Minister for Social Development and Employment Steve Maharey said the increases to childcare assistance would "strengthen the financial returns from work for low and middle-income families".

Many struggling parents will also welcome an overhaul of procedures to improve access to benefits. Dedicated Work and Income childcare co-ordinators will work with families to ensure they get the access and subsidies they are entitled to. In many cases that will include the In-Work Payment, which will replace the Child Tax Credit from April 2006, and pay up to $60 a week to parents who are in work. The current payment is only about $15 a week.

The announcement won praise from many in the early childhood sector last night. New Zealand Kindergartens said it was an "everyone wins" situation.

Colin Tarr, president of the early childhood teachers' union NZEI Te Riu Roa, said it was a sound investment in New Zealand's future.

But Ross Penman, president of the Early Childhood Council, an organisation principally representing profit-run centres, said the free education would reduce choices for parents as many private providers would be unable to compete and be forced out of business.

He was backed by National Education spokesman Bill English, who said 25,000 children at 1000 privately-owned centres would be excluded from the free education.