Consumer Price Index figures for the June 2012 quarter show quite a slow down in the rate of increase in the cost of ECE from a year ago.  

The rate of increase from one year ago was 4%.  This is less than a year earlier when ECE costs to users were up 11.7%.  

The graph above shows that while costs are creeping up, it is likely to take perhaps 5 to 7 years at the current rate before we see costs at the same level as before the implementation of the 20-Hours Free ECE policy in 2007 - that is unless government reduces ECE subsidies which would likely have the effect of speeding up the rate of increase. 

Since the December 2007 quarter the cost of ECE to users (families) has risen by 23%.

Further articles

Blog on Government plans to change the ECE funding system in NZ, click here

Ideas for Improving ECE and childcare funding, click here.  

Comments 

 

0 # Genelle Bailey 2012-08-10 19:57

By my calculations that a 1.91% increase per annum over that five year period. That must be below or on par with CPI increases. I wish my rates and power bill took that same line!

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+1 # ChildForum administrator 2012-08-10 21:12

Not sure where your 1.91% annual increase comes from.
But Statistics NZ shows the index number for the June quarter for 2012 was 806 and the index number for after the 20-Hour subsidy kicked in in the Dec quarter of 2007 was 653. The change over that period of time is a rise of 23.4%. The annual changes for the past 5 years have been 4%, 11.7%, 1.9%, 3%, and (going back to before the Dec 2007 quarter)-33.6%.

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