Written Statement: Childcare Offer for Wales: Rates Review (20 November 2024)

We are committed to supporting families with the costs of childcare through the Childcare Offer for Wales.

Our flagship Childcare Offer provides up to 30 hours of government-funded nursery education and childcare for 48 weeks a year for eligible families with children aged three and four, in work, training or education. This is in addition to our Flying Start childcare offer for families with children aged two.

We currently review the hourly rate paid to childcare providers every three years. As part of the current review cycle, childcare providers and representative bodies asked us to reconsider the regularity of reviews. In its follow up inquiry into childcare provision in Wales, the Senedd's Equalities and Social Justice Committee also called for a move to annual reviews of the hourly rate paid to childcare providers.

We recognise the need to support an environment where the sector is able to thrive and grow if we are to deliver our ambitions set out in our Early Childhood, Play, Learning and Care Plan. Taking into account the views of the sector, we will move to annual reviews following the completion of the current three-year review. This approach will support the sector with planning and improve sustainability.

This, taken together with our decision to make 100% rates relief for childcare providers permanent demonstrates our ongoing support for the sector.

I will provide further details about the outcome of the current three-year rates review following publication of the Draft Budget 2025-26.