LRC Returns to Court Over Unpaid ECD Subsidies

LRC Returns to Court Over Unpaid ECD Subsidies

In both the 2025 and 2026 State of the Nation Addresses, President Cyril Ramaphosa emphasised the importance of early childhood development (ECD) as a foundation for learning and nutrition. Yet, as South Africa enters another year with renewed public commitments to ECD, the reality on the ground remains stark: in KwaZulu-Natal, hundreds of ECD centres still face ongoing uncertainty because subsidies meant to support nutrition and early learning are not being paid consistently. This comes amid persistent national concerns about stunting, and the long-term consequences of inadequate support for early development. Against this backdrop, the Legal Resources Centre (LRC) has asked the Pietermaritzburg High Court to provide judicial case management and directions over its upcoming challenge to the KwaZulu-Natal Department of Education’s ongoing failure to pay ECD subsidies consistently.

This case follows years of payment failures affecting hundreds of ECD centres, resulting in widespread disruptions to essential services such as adequate nutrition and early learning.

The first part of the litigation was heard on 26 May 2025, when the Court ordered the Department to pay all outstanding subsidy amounts that were owed to three applicant ECD centres. While this order did produce improved turnaround times in payment to the three centres, non-payment remained entrenched throughout KZN. This reinforced the need for strategic intervention.

The second part of the matter seeks to address the broader province-wide breakdown in the administration of the ECD subsidy, and the severe impact this has on young children who rely on subsidised centres for services essential to the realisation of their constitutional rights.

The applicants — the Friends of South Africa ECD Forum (FOSA) and the KZN ECD Alliance — seek an order to compel the Department to file a comprehensive report listing all subsidised ECD centres in the province, detailing the total subsidy amounts owed to each centre, and directing that all outstanding subsidies be paid within one week of the report being filed.

According to the applicants, many centres are still owed subsidy instalments ranging from one month to a full year, with no indication from the Department of when payment can be expected. The consequences are immediate and devastating: reduced meals, fewer learning materials, and deteriorating infrastructure — all of which directly undermine the wellbeing and development of young children.

In the lead-up to the upcoming hearing, the LRC, accompanied by representatives of FOSA and the KZN ECD Alliance, met with the KZN MEC for Finance, Honourable Francois Rodgers, to raise concerns about the ongoing subsidy crisis. The engagement followed a statement issued by Provincial Treasury in August 2025 regarding an intervention into the Department of Education.

“We are grateful that Treasury gave us a platform to air our grievances and make recommendations on how the subsidy can be better administered,” said Nkosinathi Sibisi, Chairperson of FOSA. “They seemed receptive to the issues raised and demonstrated a willingness to assist further. We can only hope that this engagement leaves a lasting impact by ensuring that public resources reach the young children they are intended to serve.”

However, in the absence of court-ordered accountability and compliance by the Department, ECD centres struggle to provide the necessary support to the children in their care.

“Without money from the subsidy, I am forced to spend significant time pursuing sponsors who will fund groceries for the centre,” said Lawrence Mngomezulu, principal of Umusa Uyasilandela ECD Centre and Deputy Chairperson of FOSA. “If I ask parents to pay more in fees, they stop sending their children. That means children stay at home, often without proper nutrition, stimulation, or supervision.”

The LRC has emphasised how the Department’s ongoing failure to administer ECD subsidies consistently has far-reaching consequences for children across KwaZulu-Natal. The case seeks not only payment of outstanding subsidies, but structural relief to ensure the subsidy system operates in a predictable and accountable manner going forward.

A court order recognising access to ECD as a constitutional right will clarify the state’s obligations and create a foundation for future accountability where young children’s ECD rights are infringed. In the meantime, the applicants maintain that every delayed payment is felt immediately by the centres, with fewer meals, limited learning opportunities and unstable caregiving environments during the critical developmental window of early childhood.