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Home / Whanganui Chronicle

Whanganui parents welcome changes to childcare subsidy scheme

Mike Tweed
By Mike Tweed
Multimedia Journalist·Whanganui Chronicle·
7 Nov, 2022 04:00 PM3 mins to read

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From April 1 next year, a family with two children will get some subsidies if their income is lower than $116,117 to $124,644. Photo / 123rf

From April 1 next year, a family with two children will get some subsidies if their income is lower than $116,117 to $124,644. Photo / 123rf

Changes to the Government's childcare subsidy and Working for Families schemes have been welcomed by Whanganui parents and the chief executive of a North Island kindergarten association.

Income thresholds to qualify for childcare subsidies are set to increase from April 1 next year, and all families with incomes up to around $100,000 will receive them in some form.

The size of the subsidy depends on income and the number of children a family has.

Whānau Manaaki is in charge of 12 early learning centres in Whanganui.

Chief executive Amanda Coulston said the announcement would alleviate the stress many families faced in terms of prohibitive costs for childcare.

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"Back in 2010 there was a freeze on the income threshold, and since then it's been incredibly hard to actually access the subsidy," she said.

"In this new Covid environment, families are wanting to access different ways of paid work, everything from part-time to working from home.

"They need to be able to access education and care in ways that meet their needs."

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Whanganui resident Dan Boobyer is currently looking for suitable employment while looking after his 3-year-old son.

"Maybe if it (childcare costs) was completely covered there could be more of a focus on finding work and getting back into it," he said.

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"There would be one less obstacle to worry about.

"It's always good to find the right job instead of going through a string of the wrong ones just to make ends meet."

The changes will mean a family with two children will get some subsidies if their income is lower than $116,117 to $124,644.

Currently, only those who earn less than $84,345 to $90,584 get them.

Working for Families adjustments will bring a rise of about $9 a week in the family tax credit for the eldest child to $136 a week and $7 a week for subsequent children to $111 a week.

Whanganui single mother-of-four Danielle Henry said it was getting increasingly harder to make ends meet.

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Her two youngest children are preschool-aged and she receives financial support through government programmes.

"Prices are going up with everything," Henry said.

"At the moment, the current amount I'm getting is just enough for essentials.

"It would be lovely to have a full cupboard and not live week-to-week, or have fuel in the car and not worry."

While costs had risen in the past few years, the amount of government support hadn't, Henry said.

"If anything, it's gone down.

"With my two oldest kids, life was good, it was affordable and we weren't struggling.

"I would definitely welcome a little bit of extra money each week."

She was a certified road worker, which was her dream job, but employment wasn't an option at the moment, Henry said.

"At the end of the day, how am I meant to go to work at night time if there is no one to look after my kids?"

Whanganui families were "slowly returning" to Whānau Manaaki kindergartens post Covid-19, Coulston said.

It was important the cost of childcare wasn't a barrier to access to employment.

"There are families participating (in childcare) at the moment who couldn't access the subsidy, but that will change next year.

"It's not just about getting children into education and care, it's about easing the financial strain on those who are already accessing those services."

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