ChildCare Funders Resource
ECE Funding in New Zealand: A Guide for Centre Owners
Running a licensed Early Childhood Education service in New Zealand means juggling multiple income streams, strict Ministry of Education requirements, and a wages bill that rarely lines up with when money lands in your account.
This guide walks through every major source of ECE funding in New Zealand and how each one affects your cash flow.
1. Ministry of Education bulk funding
Bulk funding is the biggest single revenue source for most centres. It's paid per child hour, after each four-monthly funding period closes and the RS7 return is reconciled.
2. 20 Hours ECE
20 Hours ECE provides a higher funding rate for three, four and five year olds attending up to 20 hours per week at a participating service. Most centres opt in because it reduces fees for whānau.
3. Equity funding
Equity funding is additional funding for services that meet criteria in one or more of four components: low socio-economic communities, special needs and non-English-speaking backgrounds, language and culture other than English, and isolation.
4. Parent fees and optional charges
Centres can charge fees for hours over the 20 Hours ECE cap, and request optional charges (e.g. excursions, special programmes) provided whānau are told they are optional. Income is direct and predictable but capped by your roll.
5. Short-term funding from a specialist lender
When the four-monthly MOE cycle doesn't line up with payroll, rent or a planned expansion, a short-term advance against your next bulk funding payment is the fastest way to keep operations smooth without diluting ownership or signing a long bank facility.
Frequently asked questions
What's the difference between bulk funding and 20 Hours ECE?
Bulk funding is the standard per-child funding rate. 20 Hours ECE is a higher rate paid for up to 20 hours per week of attendance by three, four and five year olds at participating services.
Can I get a loan against future MOE funding?
Yes — ChildCare Funders offers cash advances of $5,000–$500,000 secured against your next scheduled MOE bulk funding payment, with same-day approval.
Are equity funding payments included in my bulk funding?
Equity funding is paid in addition to standard bulk funding, on the same four-monthly cycle.
Need cash against your next MOE payment?
Most childcare centres are approved within 24 hours.
Apply now
