Dawn Bowden MS, Minister for Children and Social Care
Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
Today, we are pleased to announce we are making our policy of 100% small business rates relief (SBRR) for registered childcare premises permanent. This will help to support the sector and save childcare settings an estimated £3.4m every year.
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. It recognises that childcare settings offer positive and caring environments for children, supporting their rights as enshrined in the UNCRC to be safe, to play, to have an education, to be healthy and be happy. It also recognises the essential role childcare plays in our economy, helping parents into work, education or training.
We initially launched 100% rates relief for registered childcare premises in April 2019 for a three-year period. This was extended for a further three years until 31 March 2025, following a review. We made a commitment to evaluate the scheme for a second time during this extension period to assess the impact on the childcare sector and Welsh Government policy aims.
The findings of our second review are clear the sector is under significant pressure and in need of ongoing support to meet rising costs, regulatory requirements and to support workforce expansion.
Making 100% rates relief for childcare providers permanent will provide this sector with stability, helping providers to invest the savings back into their business. It is the right thing to do for our settings now and into the future.
Today’s announcement is part of our £100m-plus investment every year into childcare in Wales. We will continue to work towards our overarching ambition to sustain and grow high-quality childcare provision in Wales.