Government increases pay parity rates, announces review of ECE funding model

Government increases pay parity rates, announces review of ECE funding model

LA REL EASTER/UNSPLASH

The Government announced a raft of changes relating to the ECE sector this week, including a promise of a funding model review and increase to pay parity rates. (File photo)

The ECE sector has welcomed an increase in pay parity rates and a commitment of a funding model review from the Government.

Associate Education Minister Jo Luxton​ said on Thursday it had been clear for a long time that the current funding model was not serving the sector well and was no longer fit for purpose.

It comes off the back of a pay parity funding review earlier this year and feedback for a more comprehensive overhaul of the funding model, rather than just “tinkering with conditions”.

The new funding rates will be introduced from December 1, ensuring full parity for early learning centres that choose to opt in.

For some teachers it could see pay increases of up to $6850 and up to $7353 for those in management roles.

Associate Education Minister Jo Luxton says it’s clear the current ECE funding model is “not fit for purpose”. (File photo)

ROBERT KITCHIN/Stuff

Associate Education Minister Jo Luxton says it’s clear the current ECE funding model is “not fit for purpose”. (File photo)

Luxton said that built on the earlier Budget 2023 pay parity initiative which introduced a third set of opt-in funding rates for education and care teachers to be paid in line with the pre-settlement kindergarten salary steps from November 1.

The salary changes following on from the secondary teacher settlement will then be passed onto opted-in services on December 1.

NZEI Te Riu Roa union leader Megan White​, an ECE centre manager at Capital Kids Cooperative in Wellington, welcomed the funding which matched the pay increases won by their colleagues in kindergarten and schooling.

STUFF

Prime Minister Chris Hipkins discusses changes to ECE policy and an increase to Paid Parental Leave.

However, she was concerned that if there were no systems in place to maintain parity long term, ECE teachers would continue to fall behind their primary and secondary teaching colleagues.

“Fair pay for ECE teachers is one of those things that shouldn’t have to be litigated every year; the Government has said they believe in pay parity, if that’s the case then why can’t they commit to maintaining it?”

She said the union was now calling on all political parties to confirm that they would continue to fund pay parity for ECE teachers in the lead up to the Election.

Luxton also announced that home-based services would be able to charge a nominal amount on top of the 20-hours ECE subsidy which comes into effect from March next year.

“These ‘top-up payments’ for home-based educators will have limits to ensure a good balance between affordability of ECE for parents and fairness for home-based educators.”

Work determining the review will begin in the next term of government.