Understanding Childcare Subsidies in New Zealand for Nanny and Home-Based Care | Pay The Nanny [ ![Pay the nanny logo](https://assets.paythenanny.nz/images/logo-white.png) ](/) [Parents](https://paythenanny.nz/For-Families) [Nannies](https://paythenanny.nz/For-Nannies) [Agencies](https://paythenanny.nz/for-agencies) [Pricing](https://paythenanny.nz/pricing) [Contact](https://paythenanny.nz/contact) [Sign Up](https://paythenanny.nz/signup) [Log In](https://paythenanny.nz/app/login) Article ------- Understanding Childcare Subsidies in New Zealand for Nanny and Home-Based Care ============================================================================== By Mark Hudson · 04 September, 2025 Navigating childcare subsidies in New Zealand can be tricky, especially if you employ a nanny. We break down the key options, including the 20 Hours ECE scheme and the Childcare Subsidy, and explain when families can access funding through licensed providers. ![Understanding Childcare Subsidies in New Zealand for Nanny and Home-Based Care](https://assets.caresies.io/articles/2257/conversions/02cS2CqtI02ewiO6RiZv-webp-featured.webp) 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)](https://www.education.govt.nz/early-childhood/running-an-ece-service/funding/20-hours-ece-for-ece-services)** scheme and the **[Work and Income Childcare Subsidy.](https://www.workandincome.govt.nz/products/a-z-benefits/childcare-subsidy.html)** 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](https://redrobin.co.nz/) or [Dream.](https://dream.co.nz/) 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](https://www.education.govt.nz/early-childhood/running-an-ece-service/funding/20-hours-ece-for-ece-services). 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](https://www.workandincome.govt.nz/products/a-z-benefits/childcare-subsidy.html) 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. How Pay The Nanny can help -------------------------- Even if your nanny is engaged through a licensed provider, you may still have payroll obligations for hours not covered by subsidies or additional arrangements. This is where **[Pay The Nanny](https://paythenanny.nz/?utm_source=chatgpt.com)** can help. We take the stress out of managing payroll by: - Calculating wages correctly, including holiday pay and KiwiSaver - Filing PAYE with Inland Revenue - Providing payslips for your nanny - Ensuring you stay fully compliant with New Zealand employment law Families often use a mix of subsidy support and private arrangements, and Pay The Nanny ensures everything is processed smoothly and correctly. Conclusion ---------- Childcare in New Zealand can be complex, especially when it comes to navigating subsidies and managing payroll. Whether you are using a nanny directly or working through a licensed provider like Red Robin or Dream, it’s important to understand what funding you can access and how to stay compliant as an employer. At **Pay The Nanny**, we make this process simple. From setting up payroll and managing PAYE to ensuring your nanny receives the correct entitlements, we take the stress out of being an employer. If you are unsure about how subsidies fit alongside private pay or just want peace of mind that everything is handled correctly, we are here to help. [Get in touch with us today](https://paythenanny.nz/?utm_source=chatgpt.com) to find out how we can support your family with payroll, compliance, and everything in between. 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