Future of childcare and early education is 'at serious risk'

MANY childcare providers across Wales will be forced to close due to the unsustainable funding model imposed by the Welsh Government, the sector has warned.

- CHRIS HAINES ICNN Senedd reporter [e-mail]

Lisa Owen, who has run the Chuckles nursery in Newport for more than 25 years, called for fair funding for providers and parents as she penned a 2,000-name Senedd petition.

Under the Welsh Government's offer, working parents or those in eligible education or training can receive help towards the cost of childcare for threeand four-year-olds.

But providers receive a £6.40-an-hour rate, which Ms Owen warned does not cover the true cost of delivering childcare, with many businesses being forced to run at a loss.

"Childcare providers should not have to fight to survive," she wrote. "Families should not have to struggle to find care for their children - if we don’t act now, the future of childcare and early years education in Wales is at serious risk."

In response to the petition, Dawn Bowden, minister for children and social care, said the Welsh Government will invest more than £150m in childcare in 2025/26.

Pledging to review the amount providers receive each year, Ms Bowden pointed to April’s £1.40 uplift in the rate, which had been frozen at £5 for three years as inflation spiralled.

She also raised a 20% uplift in allowable food costs and 100% small business rates relief.