New Zealand's childcare crisis deepens as costs soar and centres close

Childcare costs in New Zealand have surged, leaving many families struggling to balance work and parenting. Some now face annual bills of $15,000 to $20,000, with the average weekly cost of early childhood education jumping from $25.71 in 2007 to $90.62 in 2023. The issue has become a major financial burden, pushing the government to review funding as centres continue to close.

Between March 2022 and July 2025, 443 early childhood education centres shut down. Many cited pay parity rules and insufficient funding as key reasons. The closures have worsened access, particularly for families without nearby relatives to help.

For a household with two parents earning average wages and two children in full-time daycare, childcare can swallow over a third of their income. New Zealand now ranks among the least affordable countries globally for childcare relative to earnings.

The government's Family Boost scheme has eased some pressure. It covers 40% of childcare costs, up to $1,560 per quarter for households earning under $35,000. This support contributed to a 22.8% drop in childcare expenses compared to the previous year. Yet, costs still rose by 2.5% between March and December 2025.

With no clear regional data on shortages, families often rely on paid services due to limited family support. The government is now examining funding options to tackle rising costs and prevent further centre closures.

The review of early learning funding aims to address both soaring expenses and dwindling centre numbers. Without changes, many families will keep facing steep bills, making childcare a persistent financial challenge. The outcome of the review could shape affordability for working parents in the years ahead.