Govt Cuts Red Tape in Early Childhood Education Sector to Support Families

Under current regulations, home-based ECE providers are required to have 60 percent of their educators holding a Level 4 ECE qualification.

The New Zealand Government, led by Associate Education Minister David Seymour, has announced a series of regulatory adjustments in the early childhood education (ECE) sector aimed at reducing compliance barriers and enhancing operational flexibility for providers. This initiative seeks to address both provider concerns and increasing demand from families seeking home-based education and care for their children.

Minister Seymour highlighted the pressing need for regulatory reform, stating, “I have heard from providers that some of the red tape around home-based ECE care is too onerous and makes them spend too much time on compliance rather than on delivering quality education to children.” He emphasized that while demand for ECE is high, current regulatory constraints have limited the supply, restricting options for families and impacting the growth potential of the sector.

Key Regulatory Changes for ECE Providers

Under current regulations, home-based ECE providers are required to have 60 per cent of their educators holding a Level 4 ECE qualification. However, a proposed increase to an 80 per cent qualification requirement, set for 2025, has now been scrapped. Instead, beginning January 1, 2025, a new rule will be introduced that mandates all educators either be fully qualified or actively training to obtain their qualifications within six months of employment.

“This approach is more inclusive and practical, giving providers the flexibility they need to hire new staff and support their training, without facing the risk of closure due to rigid compliance standards,” said Seymour. “For smaller providers, the difference between compliance and non-compliance could come down to just one qualified educator, which could be the deciding factor in whether a child has access to care and education.”

Funding Overhaul to Support ECE Quality

A major shift in funding is also set to take effect in January 2025. The current funding model, which provides different funding rates based on educator qualifications, will be replaced with a single standard funding rate at the quality level for all licensed home-based services. This new baseline is designed to offer equitable financial support across the sector, regardless of the provider’s ratio of qualified to in-training educators.

Increased Flexibility for Coordinators and Providers

Additional regulatory relief is being extended to “persons responsible” in the sector, often referred to as visiting teachers or coordinators. Under the new framework, these coordinators will be permitted to oversee more than two licensed ECE services per month, allowing providers greater operational flexibility and potentially improving the availability of experienced support across multiple services.

Minister Seymour also noted that these changes are part of a broader regulatory review conducted by the Ministry for Regulation, with a comprehensive assessment of the ECE sector underway. He expressed confidence that the adjustments would support the expansion of quality ECE services across New Zealand while keeping provider needs and family demands front and centre.

“These regulatory changes aim to strike a balance between maintaining quality standards in early childhood education and allowing providers the operational freedom they need to expand and innovate,” Seymour concluded. “We’re listening to the sector, responding to its needs, and ultimately ensuring that children and families across New Zealand have greater access to home-based education options.”

This reform effort marks a critical step toward enhancing the ECE landscape in New Zealand, addressing long-standing challenges faced by providers and delivering tangible benefits for families and communities alike.