Early Childhood Development (ECD) centers in vulnerable areas of South Africa are experiencing growing financial difficulties, including debt and food rationing. The reason lies in the fact that government subsidies are significantly lower than actual operating costs.
Despite civil society demands for provincial-level action following the publication of the Medium Term Budget Policy Statement (MTBPS), the Western Cape Education Department (WCED) asserts that its capabilities are limited by national funding frameworks.
After the management of ECD transitioned from social development to basic education, advocacy groups such as Real Reform for ECD (RR4ECD) insisted on the need for reforms. They emphasize that the daily subsidy of 24 rand per child (and 13 rand for out-of-center programs) does not cover the real costs, which amount to about 45 rand.
The 24 Rand Subsidy Dilemma
RR4ECD demands an increase in the per-child subsidy from 24 to 45 rand to cover basic expenses. However, a WCED representative, Brona Hammond, stated that the province cannot compensate for this difference from its own reserves, as any adjustments are strictly governed by the national ECD structure. Hammond clarified that the Western Cape Education Department operates under the national ECD subsidy structure, which dictates any changes to the per-child subsidy rate.
For local centers, the wait for national changes has led to cuts. Clayton Morar, speaking on behalf of RR4ECD, warned that centers in marginalized communities cannot simply absorb this deficit. He noted that centers in vulnerable communities are forced to settle for fewer resources, putting pressure on their ability to provide adequate nutrition for children, pay staff at least the minimum wage, and purchase other consumables.
Morar added that while some centers may rely on donations, community support, and fees to ease the financial burden, securing such support is more difficult for centers in more vulnerable areas. In some cases, centers are forced to take out loans just to stay open.
CSG Cuts and Registration Barriers
Gaps in the social protection system exacerbate this financial strain. The monthly Child Support Grant (CSG) of 580 rand against the food poverty line of 868 rand means that poor families face a serious nutritional deficit.
National Treasury linked medium-term savings on grant expenditure to declining birth rates. Morar refuted this premise, pointing instead to administrative purges within the South African Social Security Agency (SASSA). He explained that the relatively small decline in birth rates to 1.34% since 2025 may contribute to a reduction in the number of children needing CSG, but current SASSA practices of reviewing and suspending CSG and other social grants likely explain the medium-term savings.
Morar reported that over 100,000 grant recipients have been audited, suspended, or cancelled, often without timely notification. These cancellations disproportionately affected 'Quad 7' recipients, a vulnerable demographic group already struggling with birth registration issues at the Department of Home Affairs.
Access issues are compounded by the fact that government subsidies require official ECD registration, thereby excluding informal nurseries that need support the most. Hammond countered that WCED is actively working to remove registration barriers in all districts. She noted that registration clinics are being held in partnership with municipal officials and social sector organizations, providing ECD providers with practical assistance in meeting registration requirements. Hammond also mentioned partnerships with ECD forums and ongoing training under the Mass Registration Framework.
Morar supported the implementation of registration campaigns, such as the national Bana Pele initiative, as a key tool to assist over 90% of ECD female practitioners who are currently earning below the national minimum wage. Nevertheless, he called on educational authorities to adapt bureaucratic requirements so they do not inadvertently penalize under-resourced operators.
Food Provision and Pilot Project Delays
While school-aged pupils receive special meals under the National School Nutrition Programme (NSNP), preschool institutions are not covered by this programme. Hammond explained that according to national policy, ECD institutions are not part of the NSNP. She added that subsidized ECD institutions can allocate 40% of their total subsidy towards feeding, helping to ensure adequate nutritional support for children receiving subsidized ECD services.
However, this policy leaves unregistered facilities caring for thousands of children in informal settlements without regular food support. At the national level, efforts to combat child hunger through special pilot programmes have faced hurdles. Despite the allocation of 743 million rand in the medium term for the DBE's ECD feeding pilot, tenders for launch have stalled, particularly in the Eastern Cape, where procurement has faced repeated delays.
Morar blamed these failures on internal procurement deficiencies and 'visible political de-prioritization,' urging the Parliamentary Portfolio Committee on Basic Education and civil society to ensure accountability in accordance with the Public Finance Management Act (PFMA). He stressed that the need the ECD feeding pilot was meant to address still exists. Any attempts to justify the return of unused funds or permission to retain them will require the department to provide clear evidence that these funds will be spent within the ECD feeding pilot.
WCED insists that its broader strategy focuses on integrating children aged 3 to 5 into a unified educational continuum. Hammond emphasized that provincial early childhood programmes align directly with the National Curriculum Framework (NCF) and are consistent with the CAPS Grade R Assessment and Curriculum Policy standards, supported by targeted interventions such as Step Up and Blocks for Growth for children facing learning barriers. It remains unclear whether curriculum alignment can overcome funding shortages in classrooms, as civil society coalitions argue that pedagogical frameworks mean little if centers on the ground cannot cover operational costs, feed students, or pay fair wages.
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