More affordable childcare from 3 October

Around 28,000 families will be eligible for extra help with child care costs from Monday, Social Development and Employment Minister Steve Maharey said today.

Subsidies for childcare and OSCAR (Out of School Care and Recreation) providers are set to increase by ten percent from 3 October, as part of the continued roll-out of the Working for Families package. The increase is on top of a ten percent boost and a widening of eligibility in October last year.

"This is another step towards ensuring affordable childcare for all New Zealand families," Steve Maharey said.

"A couple on $43,000 a year, with two children in after school care for 20 hours a week, will now be eligible for an additional $492 a year towards the cost of childcare. Their total subsidy will be $128.40 per week, or $5264.40 per annum.

"A single mother on $33,800 a year, with one child in care for 45 hours a week will get an extra $675 a year. Her total subsidy will be $144.45 a week, or $7222.50 per annum.

"The increase builds on a range of other government initiatives to enhance the work choices available to all parents."

Other initiatives include:

• Childcare Assistance changes in the Budget and Working for Families mean 40 percent more children receive subsidised care than the same time last year
• Widened eligibility for childcare assistance, which will see 70 per cent of all families with children eligible for extra help with childcare costs by October 2006
• Funding for Early Childhood Education will increase by $152m over the next 4 years – including free provision for 3 and 4 yr olds from 2007

Steve Maharey said extra support for parents was critical given the record levels of workforce participation, including record high female participation at 60.8 percent.

"These initiatives will help to meet the demands of our growing labour market, while giving families the support they need to achieve a good balance between work and family life."