Navigating the cost of early childhood education in New Zealand can feel overwhelming, but you may not have to carry it alone. Government support is available to help families manage childcare expenses, and the main forms are the universal 20 Hours ECE and the income-tested Childcare Subsidy. At Kia Ora Kids, we guide parents through these options so your whānau can access quality care while making the most of the support you are entitled to. The Childcare Subsidy is administered by Work and Income New Zealand (WINZ).
What is the Childcare Subsidy?
The Childcare Subsidy is a government payment that helps families with the cost of early learning. Unlike the universal 20 Hours ECE programme, which provides funded education for children aged three to five regardless of income, the Childcare Subsidy is income-tested. It targets families on low to middle incomes who need extra help with childcare costs, and it is paid directly to your childcare provider to reduce the fees you pay. You can read more about eligibility and rates on the OECE childcare subsidy page.
Childcare Subsidy and 20 Hours ECE at a glance
| Feature | 20 Hours ECE | Childcare Subsidy |
|---|---|---|
| Provided by | Ministry of Education | Work and Income (WINZ) |
| Income tested | No, available to all | Yes |
| Child age | Three to five years | Generally under five |
| Based on | Universal entitlement | Household income and hours of work or study |
| Paid to | Your provider | Your provider |
You can use both, but not for the same funded hours. More on combining them below.
Who is eligible for the Childcare Subsidy?
To qualify, you will generally need to meet the following conditions.
- Be the principal caregiver of a dependent child
- Be a New Zealand citizen or permanent resident
- Have a low or middle household income
- Normally live in New Zealand and intend to stay
Your child must also:
- Be under five, or over five if attending a cohort entry school, or under six if receiving a Child Disability Allowance
- Attend an approved early childhood programme for at least three hours per week
Approved programmes include licensed early childhood services such as kindergartens, childcare centres, playcentres, kōhanga reo, punanga reo, and home-based care like Kia Ora Kids. You can check the full list of approved programmes here.
How many hours can you claim?
The number of hours you can claim depends on your situation.
- Up to around 9 hours per week if you are not working, studying, or in training
- Up to around 50 hours per week if you are employed, studying, in approved training, or meet other WINZ criteria
The subsidy cannot be claimed for the same hours already funded under the 20 Hours ECE scheme. Hour limits are set by Work and Income and can change, so confirm the current limits when you apply.
How much can you receive?
The amount depends on your household income and the number of children you have in care. The subsidy is paid as an hourly rate for each child, up to your weekly hour limit, and it reduces as household income rises. Work and Income reviews the income thresholds and hourly rates each year, usually on 1 April, so the most reliable figures are always the current WINZ rates. We can help you estimate what your family may be entitled to before you apply.
How to apply, step by step
Applying is straightforward when you prepare in advance. Here is the process from start to finish.
- Confirm your childcare is approved. The subsidy applies at licensed services. A licensed home-based provider such as Kia Ora Kids qualifies, so confirm your enrolment details first.
- Gather your documents. You will usually need identification, proof of household income, your bank account details, and information about your work, study or training hours.
- Start your application. If you already receive other WINZ payments, you can apply through the SmartStart application portal. Otherwise you can apply directly through WINZ by contacting them or completing the relevant online forms.
- Provide your childcare details. Work and Income confirms your hours and rate with your provider, who completes their part of the form.
- Keep your details up to date. Tell Work and Income if your income, hours or family situation change, as this affects how much you receive.
At Kia Ora Kids, we guide families through this process to keep your application accurate and timely. Our team can help you gather documentation, complete forms, and communicate with WINZ, which saves you time and stress.
Combining the Childcare Subsidy with 20 Hours ECE
Many families ask whether they can use both 20 Hours ECE and the Childcare Subsidy. You can, as long as you do not claim the subsidy for the same hours already funded by ECE. In practice you apply the 20 Hours ECE to your child’s first funded hours, then use the subsidy toward additional hours beyond that. For example, if your child attends for 30 hours and 20 are funded by ECE, you may be able to claim the remaining 10 hours through the subsidy. Our team can help you structure your hours so each one draws on the right funding.
Other support: GCAP and OSCAR
Beyond the Childcare Subsidy and 20 Hours ECE, your family may qualify for other programmes such as the Guaranteed Childcare Assistance Payment (GCAP) or the OSCAR subsidy for before-school and after-school care. More information on these schemes is available through Work and Income, and they can complement the support your family already receives.
How Kia Ora Kids helps
At Kia Ora Kids we are a licensed home-based early learning service, and we support Auckland families through the financial and practical side of childcare. Here is how we help.
- Expert guidance on subsidy applications: we explain eligibility, assist with forms, and communicate with WINZ on your behalf
- Flexible enrolment hours: our home-based educators across Auckland, including the Howick, Mount Roskill and Panmure areas, let you combine 20 Hours ECE with additional subsidised care
- Transparent fees: we clearly outline what is covered by government funding and what additional charges may apply
- High-quality early learning: licensed by the Ministry of Education, we provide a safe, nurturing environment for infants, toddlers and preschoolers
You can read more about our home-based childcare, meet our educators, or book a tour to see how we can support your whānau and help you make the most of your childcare subsidy.
Frequently asked questions
Is the Childcare Subsidy the same as 20 Hours ECE?
No. 20 Hours ECE is a universal entitlement for three to five year olds with no income test. The Childcare Subsidy is income-tested support from Work and Income for families who need extra help, generally for children under five.
How much is the Childcare Subsidy?
It depends on your household income and how many hours you work or study. Rates and thresholds are reviewed each year, so the Work and Income website holds the current figures.
Who receives the payment?
The subsidy is paid to your childcare provider and reduces the fees you are charged, rather than being paid to you directly.
Can I get the Childcare Subsidy for home-based care?
Yes. The subsidy applies at approved early childhood services, which include licensed home-based providers such as Kia Ora Kids.
Can Kia Ora Kids help me apply?
Yes. We guide families through the application, help gather documents, complete the provider section, and liaise with WINZ so the process is as smooth as possible.