“20 hours free ECE” not quite what was promised

Linda Meade
Insights Newsletter
9 June, 2023

The Budget’s flagship announcement presented an enticing proposal: 20 hours of early childhood education (ECE) per week for children aged two and over, funded entirely by taxpayers, due to commence in March 2024.

Nonetheless, there appears to be a hidden cost. This so-called free provision conceals a potential economic impact that could be substantial.

To be clear, there is a good case for ECE. Numerous studies have shown the extensive benefits of quality ECE for child development. Furthermore, readily available ECE significantly enhances workforce participation, notably among women.

However, it is vital to highlight that fulfilling regulations does not always imply providing quality ECE.

A complex array of rules oversees every aspect of ECE services, from the physical environment and activity supervision to the allocation of funds. These regulations came into existence as most childcare services, excluding kindergartens, operate outside the purview of the state, run by private organisations or community groups.

Intriguingly, bodies such as the Education Review Office and the Ministry of Education seem to concentrate more on confirming regulatory compliance than on assessing the quality of services.

This discrepancy originates from the fact that existing regulations place a major emphasis on meeting minimum safety standards rather than fostering educational excellence. A prime example is the mandated adult-to-child ratios: 1:5 for children under two, and 1:10 for those aged two to five years.

And here lies the issue with the government’s promise of “free” ECE. The stark reality is that these services come at a cost.

While the government may pick up the bill, it only finances the bare minimum. Parents, however, are led to believe the service is entirely free.

This gives rise to a dilemma: the service cannot be genuinely free if parents face additional charges, even if those charges are for superior quality.

Consequently, in this context, “free” implies merely meeting minimum standards, limiting parental choice, and potentially fostering an inequitable system. Only those parents who can avail exactly 20 hours of ECE weekly will enjoy the privilege of it being “free.” Any extra hours will attract a fee, effectively shattering the illusion of a free service.

In conclusion, the “20 Hours Free ECE” policy, while seemingly a blessing, may not be as advantageous as it first appears. Its definition of “free” is heavily conditioned, restricted to minimum standards and limited hours. Parents seeking a more comprehensive, quality-driven ECE service may find themselves facing additional costs.

That is not quite what the Government promised in the Budget.

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