Latest news with #SocialInvestmentFund
Scoop
22-05-2025
- Business
- Scoop
The Growth Budget That Starves Early Childhood Education!
It is a dark time for early childhood education (ECE). The government's budget has failed to deliver for our youngest learners, leaving the sector even worse off than they were a year ago. 'The ECE sector can't grow when it's being starved of funding,' says Kathy Wolfe, CE Te Rito Maioha. 'Investment in education is vital for the wellbeing of everyone in Aotearoa New Zealand, so for ECE to receive a 0.5% funding increase while inflation runs at 2.5% is nothing less than a funding decrease at the worst possible time.' 'The ECE sector has experienced a multi-year funding freeze prior to 2017 under National leaving the sector approximately 11% behind CPI over the last 10 to 15 years. While the government touts the new Social Investment Fund, it is ironic that ECE, which aligns with a social investment approach of early and effective intervention to improve outcomes for tamariki, has yet again been stifled in a so-called investment budget.' 'The time and place for investment in our future is now, and that investment must begin with our youngest tamariki. ECE providers will have no option but to pass the increased costs of providing early learning onto parents. This budget has provided few opportunities to reduce the cost of living for parents with children.' 'With around 194,597 tamariki, 33,309 teaching staff (qualified and unqualified) and 4,409 service providers[1] in ECE being affected by funding decisions, we were very hopeful that the government's stated priority for education would result in appropriate investment for early childhood education. On this priority, the government has not delivered.' 'This is a missed opportunity for the government to deliver on some of the systemic changes that are sorely required and to fund the sector appropriately. Whilst the sector are grateful that there is a small increase of 0.5% in funding for ECE providers, it doesn't even keep up with inflation which is running at 2.5%. That's effectively a funding cut and that's very disappointing.' 'Te Rito Maioha has been continuously advocating for an ECE Funding Review to fix a broken system, so we are pleased that funding of $3.8 million has been confirmed to address funding and finally rectify fit for purpose and meaningful investment in ECE to all providers, teachers, tamariki and communities. However, any expected changes are likely to occur no earlier than 2027, far too late to support a stressed ECE sector and a better increase for the sector, the very least at inflation, would've landed better.' Te Rito Maioha's Five Point Plan outlining the changes that are required in the Early Childhood Sector. Improve teacher: child ratios Our ECE ratios are currently among the worst in the OECD. This needs to change to ensure tamariki receive the quality education, care, and attention they need to thrive, learn, and stay safe. Develop and implement a Strategic Teaching Workforce Plan We need a Strategic Teaching Workforce Plan to attract, retain, and grow a professional, culturally responsive ECE teaching workforce within Aotearoa New Zealand. This means prioritising ongoing investment in initial teacher education across all education sectors and ensuring supply and demand for teachers is well managed through this plan. Fund ECE services sufficiently Provide sufficient funding for ECE services to deliver quality education for tamariki and ensure kaiako are paid fairly and equitably—without placing the burden of high fees on parents. Replace the ECE funding model The current ECE funding model is outdated and not fit for purpose. The sector urgently needs an investment strategy and funding model that better supports today's working whānau, tamariki and ECE services to deliver quality education. Simplify regulations Regulations should ensure tamariki safety and quality ECE delivery without burdening ECE services or kaiako with repetitive, labour-intensive paperwork from multiple government agencies that keep them from tamariki education and wellbeing.
Otago Daily Times
22-05-2025
- Business
- Otago Daily Times
Budget gambles on growth
Every Budget is a juggle. Money is spent here and there. Taxes are tweaked, and spending cuts are made. Budget 2025 is especially so. Somehow, the government and Finance Minister Nicola Willis had to juggle finances and politics. Somehow, she had to conjure up many billions of dollars to salve wounds in health, reinforce the ramparts of defence, rev up roads and enhance education. At a time when money was not growing anywhere, let alone on trees, she and Prime Minister Christopher Luxon desperately need both the illusion and reality of "growth". Growth will increase the tax take and lower unemployment and benefit payments. Decent growth can reverse deficits into surpluses and raise voter morale. Ms Willis' "no BS Budget", or as she said yesterday, "a responsible Budget to secure New Zealand's future", desperately endeavoured to find extra money. New Zealand's debt is predicted to rise to 46% of GDP before sliding back. The Budget, despite the juggling, will continue to run deficits for a few years yet, at least. The spectre of long-term structural deficits continues to loom. Covid and post-Covid spending splurges have accentuated New Zealand's tricky finances. Further, the advent of United States President Donald Trump detrimentally affects international economic health and therefore New Zealand. Politically, Ms Willis and co are betting that the public will recognise their "responsibility", that the government will be rewarded for staying the course. Such is the desperation that the government swooped on the massive blowouts in the expected costs of "pay equity" settlements. This gamble produced more than half of the savings, $12.8 billion, needed over the next four years to make the Budget credible. This is the fraught juggle that could see the government come crashing down. Few will be concerned that the KiwiSaver subsidy will disappear for those earning more than $180,000. Halving the amount for the rest, and altogether $3.7b will be saved. Means testing for first-year Best Start payments, increasing the threshold for student-loan repayments and means testing parents for Jobseeker allowances for 18- and 19-year-olds are ways to generate more money. Various areas of government will have to make do without increases, and RNZ's budget will be cut. Impacts will continue to emerge over the next few days as details are scrutinised and affected parties react. There are 116 savings measures. On the other side of the ledger are 228 new spending initiatives, the likes of higher rate rebate levels for SuperGold cardholders and the 12-month prescription provision. There were also the pre-Budget announcements for the Social Investment Fund, the screen production rebate, urgent healthcare funding, more money to tackle truancy and for maths education, and to combat drug smuggling. The biggest by far was the $12b over the coming years for defence. The Budget day's new spending is the attempt to stimulate business productivity and growth through "Incentive Boost", $6.8b foregone in tax revenue over four years through immediate accelerated depreciation for capital spending. While there are no magic wands to increase productivity, the government is banking on its collection of changes to prompt more efficiency. Increases to learning support in education should not be scorned. Ms Willis did her best to lower expectations. Indeed, there is little or nothing for the "squeezed middle", which received small "tax cuts" last year when tax thresholds were adjusted. However, despite claims of an "austerity" Budget, taxes (and the overall size of the government) will increase again, partly through bracket creep or fiscal drag. Increases in wages and salaries cause more income to be taxed at higher levels. There will remain those on the Right who think that Ms Willis, despite the rhetoric, is tinkering and not tackling fundamental financial unsustainability. Others will see her as Scrooge, mean-spirited and foolishly stalling an economy that requires government stimulus. Faced with tough choices, Ms Willis has juggled the finances in a way that carries high political risk. Much will depend on whether the promised growth occurs next year.
Scoop
22-05-2025
- Business
- Scoop
Budget Fails To Support Costs Of Social Service Delivery
Press Release – Presbyterian Support Northern We would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts. Presbyterian Support Northern (PSN) welcomes some of the new investment announcements in today's Budget 2025, but is concerned about rising costs for social service providers. 'PSN is pleased to see updates to the Accommodation Supplement boundaries, Working for Families abatement threshold increases, and continued food bank funding,' says PSN CEO Shaun Greaves. 'However, we would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts. 'In the case of PSN, we have seen a consistent year on year reduction in Government funding in real terms, and each year this reduction in support impacts the level of services we can undertake for our clients. 'While we acknowledge that the Government needs to reduce costs, spending restraint should not be at a cost to social service organisations who take up the responsibility of caring for vulnerable New Zealanders hardest hit by a faltering economy.' Greaves says the Government's launch of the Social Investment Fund last week was an encouraging sign, but it's equally important to invest in ensuring organisations are able to continue delivering on existing social service contracts. 'One of our concerns from Budget 2025 is the lack of support for community providers in delivering the increases in Kiwisaver employer contributions. 'This is an extra cost, which although is good for our employees, will take money away from our frontline service delivery.' While Greaves acknowledges the Budget 2025 investment in overhauling the way emergency services respond to 111 mental health call outs, he says it falls short of supporting critical services like Lifeline, a major mental health helpline. 'Lifeline is an important national suicide and mental health helpline delivered by PSN,' he says. We receive nearly 90,000 calls and 240,000 texts a year, but receive no Government funding. We would have liked to see more in the budget to support Lifeline as we're often the first point of call for people in mental distress.' Greaves says that while the increase in the abatement threshold for Working for Families will help more families, the downside is that the first year of the Best Start payment will be income tested. 'This is a concern for us as it's critical for first time parents to have that extra payment to help them give their child the best possible start in life. 'At PSN, we deliver many Government contracts across a wide range of social services, as well as disability support and aged care services. 'Budget 2025 is a missed opportunity to truly support children and families doing it tough, and invest in a better future for our country. 'As a valued partner (with 140 years of service) PSN will continue to work constructively with government and communities to deliver impactful, value-for-money solutions to the issues our country is grappling with.'
Scoop
22-05-2025
- Business
- Scoop
Budget Fails To Support Costs Of Social Service Delivery
Press Release – Presbyterian Support Northern We would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts. Presbyterian Support Northern (PSN) welcomes some of the new investment announcements in today's Budget 2025, but is concerned about rising costs for social service providers. 'PSN is pleased to see updates to the Accommodation Supplement boundaries, Working for Families abatement threshold increases, and continued food bank funding,' says PSN CEO Shaun Greaves. 'However, we would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts. 'In the case of PSN, we have seen a consistent year on year reduction in Government funding in real terms, and each year this reduction in support impacts the level of services we can undertake for our clients. 'While we acknowledge that the Government needs to reduce costs, spending restraint should not be at a cost to social service organisations who take up the responsibility of caring for vulnerable New Zealanders hardest hit by a faltering economy.' Greaves says the Government's launch of the Social Investment Fund last week was an encouraging sign, but it's equally important to invest in ensuring organisations are able to continue delivering on existing social service contracts. 'One of our concerns from Budget 2025 is the lack of support for community providers in delivering the increases in Kiwisaver employer contributions. 'This is an extra cost, which although is good for our employees, will take money away from our frontline service delivery.' While Greaves acknowledges the Budget 2025 investment in overhauling the way emergency services respond to 111 mental health call outs, he says it falls short of supporting critical services like Lifeline, a major mental health helpline. 'Lifeline is an important national suicide and mental health helpline delivered by PSN,' he says. We receive nearly 90,000 calls and 240,000 texts a year, but receive no Government funding. We would have liked to see more in the budget to support Lifeline as we're often the first point of call for people in mental distress.' Greaves says that while the increase in the abatement threshold for Working for Families will help more families, the downside is that the first year of the Best Start payment will be income tested. 'This is a concern for us as it's critical for first time parents to have that extra payment to help them give their child the best possible start in life. 'At PSN, we deliver many Government contracts across a wide range of social services, as well as disability support and aged care services. 'Budget 2025 is a missed opportunity to truly support children and families doing it tough, and invest in a better future for our country. 'As a valued partner (with 140 years of service) PSN will continue to work constructively with government and communities to deliver impactful, value-for-money solutions to the issues our country is grappling with.'
Scoop
22-05-2025
- Business
- Scoop
Budget Fails To Support Costs Of Social Service Delivery
Presbyterian Support Northern (PSN) welcomes some of the new investment announcements in today's Budget 2025, but is concerned about rising costs for social service providers. 'PSN is pleased to see updates to the Accommodation Supplement boundaries, Working for Families abatement threshold increases, and continued food bank funding,' says PSN CEO Shaun Greaves. 'However, we would have liked to see more focus on adequate funding and support of the NGO and charity sectors that deliver the bulk of social service contracts. 'In the case of PSN, we have seen a consistent year on year reduction in Government funding in real terms, and each year this reduction in support impacts the level of services we can undertake for our clients. 'While we acknowledge that the Government needs to reduce costs, spending restraint should not be at a cost to social service organisations who take up the responsibility of caring for vulnerable New Zealanders hardest hit by a faltering economy.' Greaves says the Government's launch of the Social Investment Fund last week was an encouraging sign, but it's equally important to invest in ensuring organisations are able to continue delivering on existing social service contracts. 'One of our concerns from Budget 2025 is the lack of support for community providers in delivering the increases in Kiwisaver employer contributions. 'This is an extra cost, which although is good for our employees, will take money away from our frontline service delivery.' While Greaves acknowledges the Budget 2025 investment in overhauling the way emergency services respond to 111 mental health call outs, he says it falls short of supporting critical services like Lifeline, a major mental health helpline. 'Lifeline is an important national suicide and mental health helpline delivered by PSN,' he says. We receive nearly 90,000 calls and 240,000 texts a year, but receive no Government funding. We would have liked to see more in the budget to support Lifeline as we're often the first point of call for people in mental distress.' Greaves says that while the increase in the abatement threshold for Working for Families will help more families, the downside is that the first year of the Best Start payment will be income tested. 'This is a concern for us as it's critical for first time parents to have that extra payment to help them give their child the best possible start in life. 'At PSN, we deliver many Government contracts across a wide range of social services, as well as disability support and aged care services. 'Budget 2025 is a missed opportunity to truly support children and families doing it tough, and invest in a better future for our country. 'As a valued partner (with 140 years of service) PSN will continue to work constructively with government and communities to deliver impactful, value-for-money solutions to the issues our country is grappling with.'
