The government has tweaked a key Budget policy , by backing down on a condition it was imposing on the early childhood education sector.
As part of last month's Budget, it extended 20 hours of free ECE to two year olds, from March next year.
But in doing so, it imposed a number of new conditions for centres if they wanted to receive the subsidy, including requiring centres to offer enrolments for 20 hours only, if requested.
Some providers had raised concerns the condition was unworkable, and would cause them to run at a loss.
The Prime Minister, Chris Hipkins, says he's heard the concerns loud and clear.
Mr Hipkins is also defending not consulting with the sector before the announcement was made at the Budget.
A requirement for centres to provide transparency to parents around exactly what they are charging for will remain.
