Early learning Wage Subsidy applications fall off a cliff

03 March 2021

The number of Wage Subsidy applications by early learning providers has dramatically declined since the first lockdown according to an Early Childhood Council survey.

While 90% of providers surveyed applied for the subsidy in June 2020, that falls to just 20% on average for August 2020 and March 2021 during Auckland’s Level 3 periods.

“Going from a 40% to 30% revenue drop threshold to access the Wage Subsidy means the majority miss out and don’t bother applying,” said ECC CEO Peter Reynolds.

76% of Auckland centres surveyed indicated they will open their doors for parents who need to send their children to care through the latest lockdown – but with a small percentage of children attending, meeting the wage bill is challenging.

“That subsidy will make a real difference for centres with teachers to pay but limited revenue coming in – we’d like to see the revenue drop threshold moved back to 30% so that it’s accessible once more,” said Mr Reynolds.

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