The new Government needs to find a quarter of a billion dollars to settle a pay parity deal with early childhood teachers.

A previous cost estimate for the settlement was found to be vastly too low.

NZEI says the outgoing Government committed to paying teachers.

National Secretary Stephanie Mills says problems in the sector must be sorted - or things will only get worse.

"If we want to stop the real churn in the sector, people going to Australia and the loss of morale, the Government really does need to address this."

LISTEN ABOVE