Ross Intermediate principal Wayne Jenkins says funding for teacher aides needs to be addressed.

Schools are faced with cutting teacher-aide hours in a dramatic move prompted by the recent rise in the minimum wage, which wasn't matched with an increase in funding.

Some schools could even be left with no choice but to slash staff numbers.

The minimum wage this month rose 75 cents to $16.50 an hour this month and The Government wants it at $20 by 2021.

STUFF Lynda Stuart, president of the New Zealand Educational Institute union, says schools have long been underfunded for support staff.

Manawatu Principals' Association President Wayne Jenkins said the increase highlighted the "gross" underfunding for special education support staff who work with vulnerable children.

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"Teacher aide funding... we get $18.47 [an hour for special needs funding], but it includes GST. So net value is $16.06 to pay for teacher aides to work with some of our most priority learners."

DAVID UNWIN/STUFF Freyberg High School principal Peter Brooks has had to cut staff hours to keep up with wage increases.

Central District Secondary Principals' Association chairman and Freyberg High School principal Peter Brooks said experienced teacher aides were highly skilled and often doing a difficult job.

"This year, we've had to reduce hours and the number of teacher aides because their pay goes up on the scale, because you have only got so much money, but you've still got to cover it. The choice is to either reduce the hours of teacher aides or lay off teacher aides.

"Teacher aides perform an enormously valuable role in schools and get underpaid because of the funding... that's really hard on them."

Many stay in the job because they are devoted to the children they work with, he said.

"I don't think there'd be anyone in the education system that would not say the bar [for special needs funding] is set too high," Brooks said.

"We'd have a whole class of students who really don't function well in mainstream schooling."

Schools must rely on their pool of operating funds to provide extra learning support.

New Zealand Educational Institute Union president Lynda Stuart said schools have been underfunded for support staff for a long time and the minimum wage rise has added to that.

"It's absolutely something we're coming across. The minimum wage does impact, but schools are making those decisions all the time. The cutting of hours is definitely happening.

"You have to pay your power bill, you have to ensure you've got enough toilet paper in the school, and to fix things that are broken or buy things for health and safety, and then you get the little bit of money that might be left over [for support staff]... Those are the things that the employment of teacher aides is actually competing against."

Ministry of Education deputy secretary of sector enablement Katrina Casey did not directly answer questions about whether teacher aide funding was so low schools could struggle to use it to cover minimum wage.

But, she said about eight to 10 per cent of young people in schools or preschools need extra learning support.

"The level of teacher aide support that a child or young person receives is based on the learning needs of the child. Schools employ teacher's aides and decide their hourly rate, but we contribute towards this."

Schools also use operating funds from the ministry to pay for teacher aides, she said.

"This year, we estimate we will contribute approximately $95 million towards the cost of schools employing teacher's aides".