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$57 million cut to childcare subsidies

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New Zealand Herald
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Article
Publication Date: 
2 May 2010
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The Government will cut more than $57 million in childcare subsidies
from September, it has been reported.

More than 11,000 families will no longer receive childcare
subsidies or will get a reduced subsidy under the changes, the Sunday
Star Times reported.

The changes include children aged up to 13 in childcare or
out-of-school care.

The Government was expected to lower the income eligibility
thresholds - the current threshold for a one-child family is $77,272,
which will drop to $72,800 from September 27. For a two-child family, it
will drop from $88,296 to $83,200, and for families with three children
or more it will drop from $99,320 to $93,600.

Social Development Minister Paula Bennett said those on higher
income who already received assistance would not be immediately affected
because the changes would be rolled out over three years.

...

Labour spokeswoman Sue Moroney said the cuts were made worse by
the expected increase in GST and the possibility of cuts to the 20 hours
free early childhood education scheme.

"All you need is two parents earning around $40,000 each, which
is not a high income, and you are losing under this package, so this is
not hitting very high-income families, this is hitting middle-income New
Zealanders."

Education Minister Anne Tolley said last week the cost of
providing the 20 hours free early childhood education had nearly trebled
over the last five years and was projected to continue rising at about
$200 million a year.

Mrs Tolley said there was unequal uptake, with poor families
losing out.

Asked whether she intended means-testing parents, Mrs Tolley said
"wait for the budget".

- reprinted from the New Zealand Herald