Funding boost for Playcentres
Kia ora koutou Playcentre whānau,
I hope this message finds you well and full of enthusiasm for the positive progress being made to shape the future of Playcentre Aotearoa and enhance the support we provide to our Playcentre communities.
Further to our press release issued on 18 May, following Budget 2023 announcements, we can now provide further information about the three new areas of funding for Playcentres. These are a testament to the unique role we play in early childhood education (ECE) across Aotearoa.
The three key funding provisions from Budget 2023 are:
1. One-Off Grant: In response to our emergency grant application, we have been awarded a substantial one-off grant of $3 million. This grant has been allocated to support the sustainability of Playcentre Aotearoa and to assist with our serious financial position. Our current deficits are the result of the investment we are making in supporting Playcentres, including significant investment on remedial works for Playcentre buildings. This grant provides us with a crucial lifeline, affording us more time to finalise the co-design of a new funding model in partnership with the Ministry of Education. It demonstrates the Ministry’s commitment to our success and recognition that Playcentre offers a unique, parent-led service, providing ECE to over 9,000 children.
2. Child Funded Hours Subsidy Increase: From 1 January 2024, Playcentres will benefit from an increase of 5.3 percent in subsidies. This increase will help centres meet the rising costs associated with providing high-quality licensed sessions. Importantly, it also minimises the need for centres to request increased fees or donations from parents, ensuring that Playcentre remains accessible and affordable.
3. Extension of 20 Hours Free ECE: From 1 March 2024, the 20 hours ECE policy will be extended to include two-year-olds. As many may have seen in the media, there are issues in the detail behind this Government budget announcement. As these details continue to emerge, we will be actively assessing their implications for our organisation. Rest assured, we are providing feedback to the Ministry of Education on what the effect of this policy change will be on Playcentres, to best serve our Centres and uphold our philosophy.
Co-design of new funding model with Ministry of Education
In addition to the new funding provisions announced in Budget 2023, I am excited to report positive progress on the co-design of a new funding model with the Ministry of Education.
Last week, we had a very positive meeting with Associate Education Minister Jo Luxton and Ministry of Education staff. I am pleased to inform you that we have set an ambitious timeline, aiming to complete the funding model co-design process by the end of August 2023. This aligns perfectly with the upcoming budget round for Government in October 2023, and we anticipate the results of our funding model co-design efforts to be announced in April 2024, with implementation set for July 2024.
The dedication and hard work of Playcentre staff since last year have yielded significant progress, and we are on track to finalise a new funding model that will enable the sustainable growth of Playcentres for years to come.
Thank you to all our Playcentre parent volunteers and staff who are committed to our Playcentre philosophy which values and affirms parents as the first and best educators for their children.
Together, we are building a brighter future for Playcentre whānau and tamariki across Aotearoa.
Nga mihi nui,
David Moger, Chief Executive
Te Whānau Tupu Ngatahi o Aotearoa – Playcentre Aotearoa