The Equity Index — what your centre's funding band actually means
In 2023 the Ministry of Education replaced the decile system with the Equity Index (EQI) for early childhood education. Here's what it actually measures, what it doesn't, and how to read it on a centre profile.
What it is
The EQI is a numerical index assigned to each NZ early childhood service. It estimates the cumulative socio-economic challenge faced by the children attending that specific centre, based on individual-child data — not aggregate-neighbourhood data like the old decile system used.
Centres serving children with greater challenges receive extra "equity funding" from the MoE, on top of the standard per-child rate.
The bands
Centres are grouped into funding bands. The published threshold is currently around EQI 5 — services above this threshold receive additional equity funding.
- EQI < 5 — receives standard MoE funding only
- EQI > 5 — receives additional equity funding; serves children with greater identified challenges
The MoE publishes the band (e.g. "EQI > 5") rather than the underlying score so that families can't compare centres at the granular level — protecting individual children's privacy.
What it does NOT tell you
- Not a quality score. EQI measures the population of children, not how well the centre teaches them. Plenty of highly-effective centres operate in high-EQI areas; plenty of mediocre centres operate in low-EQI areas. For quality, look at ERO reports.
- Not a guide to "good" suburbs. Don't use it as a proxy for which suburb to live in. NZ has plenty of high-EQI areas with strong community, low crime, and excellent local services.
- Not a fee predictor. Equity funding goes to the centre, not to the family. Out-of-pocket fees are similar across EQI bands.
Why it was changed from deciles
The decile system was based on the average socio-economic profile of the geographic area around a school or centre, using Census data. Problems: deciles changed only with each Census (5 years), couldn't account for individual children, and got widely (mis)used as a quality signal. Auckland Grammar (decile 10) became code for "good school"; Otāhuhu College (decile 1) became code for "bad". Neither was accurate.
The EQI uses individual-child data (anonymised) and updates more often. It's still imperfect but it's a better instrument for the underlying policy goal: directing extra funding to children who'll benefit most.
How we display it
On every centre profile, the EQI band appears in the "At a glance" section under "Equity Index". We surface it because it's a real piece of public information about a centre — not because we think it should drive your enrolment decision. For that, look at ERO reports + visit the centre.
Frequently asked
- What replaced the decile system?
- The Equity Index (EQI). The decile system was retired for ECE in 2023 and replaced with the EQI, which uses individual child data (not aggregate neighbourhood data) to identify children facing socio-economic challenges. The EQI drives extra "equity funding" to centres serving those children.
- Does a higher EQI mean a "worse" centre?
- No — the EQI measures the population of children attending, not the quality of the centre. A high EQI band means a centre receives extra government funding to serve children with greater challenges. Many highly-effective centres operate in high-EQI areas.
- How do I see the EQI for a centre?
- Every Daycare Near Me centre profile shows the MoE-published Equity Index band where available. It's in the "At a glance" section.
Related
Sources: education.govt.nz/equity-index · our methodology