OECD suggests vouchers for young kiwi kids

A voucher scheme for early childhood education is suggested by the OECD.

In its recent review of New Zealand's policies supporting parents in work and childcare, the OECD says "bulk-funding" should be redirected from providers to parents for pre-primary school education. "Paying childcare subsidies directly to users would remove inequities between parents, and between the childcare and the kindergarten sector. "Linking such payments to families' working hours could strengthen financial incentives for parents (second earners) seeking work, while a comprehensive licensing system would maintain quality standards."

The report, Babies and Bosses, advocates support for working families with infants and early school-age children, so parents can plan their careers. It would also reassure employers their staff would return to work after child-related absences.

The report recommends:

• low effective tax rates that ensure being in work is financially rewarding for all parents
• public investment in child- and out-of-school-hours care to make it easier for mothers to take paid jobs.

Commenting on the report, Social Development and Employment Minister Steve Maharey said allowing parental leave periods to be spread to facilitate part-time work would be considered in policy reviews in the next few years.

A key recommendation is to better link day-care operating hours with parents' working hours.

"Current funding restricts financial support of childcare services to six hours per day, making it difficult for both parents to work full-time," the report says.

Government requirements push up costs

The report also says that low staff-student ratios and the requirement for all staff to have teaching qualifications may be increasing fees, forcing parents to give up work and increasing the risk of child poverty.

Early Childhood Council chief executive Sue Thorne said that on top of the qualifications requirement, the Government also wanted improved child ratios, more indoor and outdoor space per child and group sizes reduced.

"This wish list comes at a huge cost and one of our concerns is that the hours of care, over and above the funded six hours per day, will become so expensive that full time working parents will be forced into backyard-care arrangements for their children," Mrs Thorne said.

Information on the New Zealand section of the OECD report is at this OECD web page.