By JOHN HARTEVELT - The Press

Some parents might have to pay more for early childhood education after funding changes, Prime Minister John Key says.

The Government yesterday insisted the 20 Hours early childhood education (ECE) policy would be unaffected, but Key revealed the Government was "looking at issues" in the sector.

"We are very cognisant of the huge increase in costs there and also cognisant of the benefits that come from that and we're considering some matters," Key said.

It was possible some parents would have to pay more for early childhood education, he said.

The Government has maintained and extended a subsidy for 3, 4 and 5 year-old children to attend 20 hours of ECE each week.

The policy is meant to boost numbers – especially Maori and Pasifika children – in centres.

The policy has contributed to the cost of ECE to the tax-payer growing from $428.4 million in 2004-5 to $1.15 billion in 2009-10.

However, participation rates in low-income areas remain low.

Education Minister Anne Tolley said there were some cost pressures in the sector that were not helping to improve participation rates.

"We have to put some resources into improving participation," Tolley said.

"There are communities around the country that we want to focus on with that work and that's required us to have a look at what is driving the cost pressures in ECE."

Earlier this year, Tolley said the Government was trialling "some different types of early childhood activities" in areas with low rates of participation.

"There has been work with some of the community champions and there has been some different types of early childhood development and that is meeting some cultural needs," Tolley said.

The areas of most concern for participation rates were in South Auckland, Porirua and "big areas in Christchurch".

New Zealand Childcare Association chief executive Nancy Bell said any funding cuts would reduce the quality of services across the country.

"Funding cuts will increase the fees charged to parents, force centres to cut costs and pose a barrier to the families that would benefit most from high quality ECE," Bell said.

Labour Party ECE spokeswoman Sue Moroney said the funding changes would put early childhood education on a "slippery slope".

"How on earth can the Government grow the sector and contain costs?" Moroney said.