Dawn Bowden MS, Minister for Children and Social Care
The Welsh Government continues to support families with the costs of childcare through a number of programmes across Wales.
Our Childcare Offer for Wales enables eligible parents of three- and four-year-olds to access up to 30 hours of government-funded nursery education and childcare for children for 48 weeks a year which includes holiday provision. The Offer also continues to be available to parents in training and education.
Our flagship Flying Start programme, offers fully funded, high-quality childcare to parents of all eligible two-year-olds for two and a half hours a day, five days a week for 39 weeks a year.
We are continuing to expand Flying Start childcare to support long-term, positive impacts on the lives of those children and families and we remain committed to reaching all two-year-olds across Wales.
We recognise that our childcare offering in Wales relies on a fair, sustainable support package for childcare providers. This is why on 12 November 2024, we made 100% Small Business Rates Relief for registered childcare premises permanent. This underlines our support for childcare in Wales and our ongoing aim for settings to be financially sustainable, as set out in the review and refresh of our 10-year Childcare, Play and Early Years workforce plan.
We also recognise the need to support an environment where the sector can thrive and grow if we are to deliver our ambitions set out in our Early Childhood, Play, Learning and Care Plan. This is why, on the 20 November, I confirmed that we will move to annual rate reviews following the completion of the current three-year review. This approach will support the sector with planning and improve sustainability. Any future uplifts will be considered in line with Welsh Government budget wider planning.
To continue supporting this sector, we are increasing the hourly rate paid to childcare providers from £5.00 to £6.00 per hour. This 20% increase will take effect from 7 April 2025 – the first Monday of the new financial year. We will also be providing additional funding to support the continued alignment of Nursery Education and Flying Start childcare.
We have also reviewed the guidance for providers on permissible food charges. We must carefully balance what is affordable for the provider and affordable for parents whilst recognising continued pressure in food, utility and energy prices. This is why, from April 2025, the daily rate for food will increase from £9.00 to £10.80. My Officials will continue to engage with representative bodies across Wales to refine guidance around permissible charges as part of the Childcare Offer to bring greater clarity for parents and childcare providers.
This support package will help provide greater sustainability across the childcare sector in Wales, ensuring parents can continue to benefit from Welsh Government funded childcare and ensure our policies to support children and their families align so we can maximise effectiveness.