Prime Minister Christopher Luxon said that while the system is not as "dynamic" as the Government wanted, "the money still comes through".

The policy, called FamilyBoost, was first announced in March last year.

It means from July 1, parents and caregivers of young children will be eligible to apply for partial reimbursement of early childhood education (ECE) fees, up to 25% of the weekly fees, to a maximum of $75 per week.

Eligible people would need to collate their ECE invoices from July 1 and apply on a three-monthly basis for a lump-sum repayment through Inland Revenue's online platform, MyIR. The first payments would be made in October this year.

Only families earning $180,000 and under, with childcare costs, were eligible, with the maximum repayment gradually reducing for families earning more than $140,000.

▶ Chapters:
00:00 Luxon on how Childcare subsidy will work
07:06 Luxon on Cyclone Gabrielle emergency response review

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