Kindergartens Aotearoa union expects Budget increase to be below inflation

A union for early childhood education workers is disappointed that an anticipated increase in funding is expected to be less than the rate of inflation.

Kindergartens Aotearoa asked for 5 percent in next week's Budget, but has been told that it will be less than that.

Associate Education Minister David Seymour would not confirm the exact amount before Budget Day.

Spokesperson Amanda Coulston told RNZ that it was not fair, especially as the government campaigned on improving education.

Coulston said the reductionist, austerity approach to the Budget would not work for the early childhood education sector.

"It is really short-sighted.

"The benefits are well-known and relate directly to the outcomes this government is looking to achieve across the education system."

Coulston said Kindergartens Aotearoa had been clear that the early childhood education sector needed an increase.

"The previous increases have not kept in line with inflation, so have effectively been funding decreases."

In last year's Budget, the government invested $51.1 million - a 0.5 percent increase, but far below the inflation rate of 2.5 percent in the 12 months to the March 2025 quarter, and 2.7 percent in the 12 months to the June 2025 quarter.

Coulston said more investment would not only help children, but also ease the financial pressure on their families.

"Now more than ever, finding ways to reduce the costs for parents and caregivers of participating in early childhood education, alongside ensuring services provide high-quality early childhood education, is critical.

"There can be no trade-off here, to do so would be false economy."

The inflation rate was 3.1 percent in the first three months of 2026.

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