54 percent of all New Zealand families with children will now be eligible for subsidised childcare assistance.

The policy announced by Jacinda Ardern reverses a freeze on the income threshold for childcare eligibility that National put in place in 2010.

Jacinda Ardern said the policy means a family with two parents both working 40 hours per week on $26 per hour with two children under five who will not have been eligible for childcare assistance, now will be eligible for $252 per week from 1 April 2023. 

“A family with two children on a median family income for Working for Families recipients are now receiving over $1300 more a year since we took office. That climbs to over $3600 for families receiving the Best Start payment.”

 “Supporting New Zealand families with the cost of living is the top priority for the Government. This kind of targeted support not only reaches those who need it most but it won’t have a significant impact on inflation and make the problem worse” Jacinda Ardern said.

At a glance:

·       Over 10,000 additional children eligible for support. 

·       Nearly every sole parent in New Zealand will be eligible for childcare assistance 

·       Increasing the income thresholds increases both the number of families eligible and increases the amount for many already getting it.  

·       From April 2023, the Family Tax Credit will also increase by $9 a week for the eldest child to $136 a week, and by $7 a week for subsequent children to $111 a week. Best Start too will lift by $4 a week to $69 a week.