Understanding Childcare Subsidies in New Zealand for Nanny and Home-Based Care

Childcare subsidies in New Zealand: what parents need to know

Raising children in New Zealand can be expensive, and the government offers several forms of financial assistance to help families with childcare costs. Two of the most common subsidies are the 20 Hours ECE (Early Childhood Education) scheme and the Work and Income Childcare Subsidy.

If you’re employing a nanny or using home-based care, the rules are slightly different from centre-based care. Understanding how these subsidies work will help you make the most of available support.

The 20 Hours ECE scheme

The 20 Hours ECE scheme provides up to 20 hours a week of free early childhood education for all children aged 3, 4 and 5 years old.

This funding can be used in early childhood centres, kindergartens, or with approved licensed home-based providers. Importantly, families cannot access this funding if they hire a nanny directly, as the scheme requires care to be delivered through a licensed provider.

In practical terms, this means that if you’d like to use your nanny but also access the 20 Hours ECE subsidy, you must go through a licensed home-based service such as Red Robin or Dream. These providers manage the responsibilities which come with obtaining the funding, ensuring the home and requirements meets Ministry of Education licensing requirements.

You can read more about the scheme on the Ministry of Education website.

The Childcare Subsidy through Work and Income (WINZ)

The Childcare Subsidy is a payment from Work and Income (WINZ) to help families with the cost of childcare. It is income-tested, so the amount you receive depends on your family income and the number of children you have.

This subsidy can also be used with nannies, but only if they are engaged through a licensed home-based provider. Again, that means families working with services like Red Robin or Dream may qualify, while direct employment of a nanny without provider involvement won’t make you eligible.

The subsidy covers children aged under 5 who are not yet at school, and in some cases, children up to 13 years old if parents are in work, training, or have health needs.

For detailed information on eligibility and rates, see the Work and Income Childcare Subsidy page.

Why you need a licensed provider

Both the 20 Hours ECE scheme and the WINZ Childcare Subsidy share a common rule: they can only be accessed through licensed providers. This is because licensed services are monitored by the Ministry of Education and must meet specific standards around training, safety, and education.

For families who love the idea of a nanny but also want financial support, working through a provider is the only pathway. Providers such as Red Robin and Dream can help with:

• Matching you with a qualified nanny
• Managing the compliance requirements
• Assisting with subsidy paperwork

Key takeaways for parents

• 20 Hours ECE: Available for children aged 3–5, but only through licensed providers.
• Childcare Subsidy (WINZ): Income-tested, available for younger children (and in some cases up to age 13), but must be through a licensed provider.
• Licensed providers like Red Robin and Dream are essential if you want to access subsidies while using a nanny.