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flag New Zealand's childcare costs surged to $20K annually, sparking closures and calls for urgent funding reform despite partial relief from a 2024 payment.

flag New Zealand's childcare costs range from $15,000 to $20,000 annually per child, with weekly expenses rising from $25.71 in 2007 to $90.62 in 2023 and a 2.5% increase from March to December 2025. flag The Family Boost payment, introduced in July 2024, reduced costs by 22.8% for eligible families, but the 20 Hours ECE subsidy still falls short of covering actual delivery costs, creating an 11.5% inflation gap since 2019. flag Over 400 early childhood centres have closed since 2022, and providers warn more may shut without increased government funding. flag Experts stress that care quality depends more on staffing ratios and qualifications than ownership type. flag A government review is underway amid calls for urgent funding reforms to prevent further closures and rising fees.

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