New Zealand's childcare crisis leaves families paying a third of their income
Childcare costs in New Zealand remain among the least affordable globally, placing significant strain on families. Despite government support introduced last year, many parents still grapple with annual bills up to $20,000. Rising expenses have left working households struggling to balance budgets while ensuring their children receive early education.
In July 2024, the government launched Family Boost payments to alleviate the financial burden, now covering 40% of a household's childcare costs. However, for two parents earning average full-time wages with two children in full-time daycare, over a third of their income still goes towards childcare.
Data indicates early childhood education fees have climbed steadily over the years. The average weekly cost rose from $25.71 in 2007 to $90.62 in 2023, with prices increasing another 2.5% between March and December 2025.
Options vary in affordability. Playcentres offer the cheapest rates, while kindergartens can charge as little as $3 per hour for care beyond the 20 free hours scheme. Home-based education fees, however, range widely—from $5 an hour to $12 or more.
The Early Childhood Council has cautioned that without further changes, costs will likely continue to rise. Alternatively, more childcare centres may be forced to close, reducing available places for families.
Despite government subsidies, childcare remains a major expense for New Zealand households. With fees continuing to climb, families face tough choices between work and affordable care. The long-term impact on availability and affordability remains uncertain without additional intervention.
