Childcare aid will help fill labour shortages

Palmerston North is a great place to raise a family. Whether your family enjoy a stroll or cycle alongside our mighty Manawatu¯ River, or sampling our cafes and restaurants, there is something here for everyone.

But for many local working families, childcare is one of the biggest household costs. That’s why I’m really proud that as part of our Government’s work to support New Zealanders with the cost of living, we’re making childcare more affordable for low and middleincome families.

We recently announced we’re significantly expanding childcare assistance, cutting costs for working parents and supporting more children into early education. On top of this, we’re further boosting Working for Families and the Best Start payment, providing more support to help ease the pressure.

These changes will kick in from April 1. The exact amount families will save on childcare costs will depend on the number of hours they work, their wages, the number of hours of childcare a day, and the cost of their early childcare education centre.

For example, a Palmerston North family with two parents both working 40 hours a week on $26 an hour with two children under 5 who would not have been eligible for childcare assistance will now be eligible for $252 a week.

Childcare assistance has been neglected for more than a decade, and I’m really proud the changes we’re making will see thousands of parents given back the choice to do what’s best for their family. I know what a difference this will make.

By reducing financial barriers and better supporting parents who want to enter work or further training, we’re also helping fill labour shortages.

At a time when families are feeling the cost-of-living spike, our Government is investing in what matters most. We’re now taking the next step to make sure childcare is within reach for parents and that families in Palmerston North have more support to cover other costs.

Tangi Utikere