10-1 What is equity funding?
Equity Funding is a targeted funding mechanism for all licensed ECE services. Equity Funding is paid to eligible services in addition to the ECE Funding Subsidy and 20 Hours ECE.
The objectives of equity funding are to:
- reduce educational disparities between different groups in New Zealand communities
- reduce barriers to participation faced by those groups that are under represented in ECE services
- support ECE services in raising their level of educational achievement.
Licensed ECE services that meet the criteria outlined in this chapter are eligible.
Structure of equity funding
Equity funding consists of four components. Services may be eligible for funding against one or more (or all) components. Each component is described in detail in this chapter, but the following table provides a summary:
|| Measured By|
|A: Low-Socio Economic Communities
||Equity Index (EQI) |
|B: Special Needs, and non-English Speaking Backgrounds (including sign language)
Equity Index (EQI)
|C: Language and Culture other than English
||Attestation (EC15 Form) |
||Isolation Index |
When is funding paid
Eligible services will receive funding along with the payment of the ECE Funding Subsidy and 20 Hours ECE (ie March, July and November of each year).
Equity Funding is ‘tagged’. This means that it is identifiable as an amount additional to a service’s ECE Funding Subsidy and 20 Hours ECE.
Equity Funding must be spent with the equity objectives for participation and quality in mind. Guidelines for expenditure of each component are listed in the relevant section of this chapter.
Services are required to report to parents and the local community about how they have spent their Equity Funding.
The specific reporting mechanism is at the discretion of the individual service (or service provider). However, the following minimum standards are required:
- outline of the amount received under each Equity Funding component.
- brief description of the purpose to which the funding was applied (eg purchase of goods or services).
- brief outline of the reasons for spending the funding in that way.
- the report is included in the service’s annual report for presentation at its annual general meeting.
Reports may be subject to external review by the Ministry and/or the Education Review Office (ERO).