News: Press release: The Childcare Offer for Wales
Cwlwm welcome the announcement from the Welsh Government of an extra £6 million per year to increase the hourly rate for childcare providers for the Childcare Offer for Wales from £4.50 to £5 per hour from April.
The 11% increase will help provide greater sustainability across the childcare sector in Wales. The commitment to a review of the rate at least every three years also reflects the challenging climate providers are currently working in. The additional funding announced to support the continued alignment of funding rates paid through other funding streams including Flying Start is also a positive step and supports the Welsh Government’s ambition of a joined up approach to Early Childhood Education and Care (ECEC).
Wider extension of the Offer to parents in education and training and parents on adoption leave will not only enable families to access funded childcare and support with the costs but also give a boost to settings, many of whom have struggled with filling vacancies during the pandemic.
Julie Morgan MS, Deputy Minister for Social Services said;
‘We are committed to supporting working families with the costs of childcare. Our Childcare Offer for Wales provides up to 30 hours of government-funded early education and childcare for children aged three and four, whose parents are in work, for 48 weeks a year.
The Childcare Offer is continuing to expand, in terms of the number of families accessing the Offer and the number of childcare settings offering spaces.
It is important childcare providers are paid a sustainable rate under the Childcare Offer. Research, published in November 2021, found the Childcare Offer has had a positive effect on profitability for more than two-thirds of childcare providers, but there have been calls to review the hourly rate paid for childcare through the Offer, particularly in certain parts of Wales.
This increase will help provide greater sustainability across the childcare sector in Wales, ensuring working parents can continue to benefit from the Childcare Offer. It will also enable the continued provision of high-quality care and education, giving children the very best start in life.’
In addition to an increase in the hourly rate paid for childcare, the maximum amount settings can charge for food will also increase from £7.50 to £9 a day, reflecting the increase in both food prices and utility and energy prices.
Dr Gwenllian Lansdown Davies, Mudiad Meithrin’s Chief Executive said:
“In Mudiad Meithrin’s document ‘Grym ein Gweithlu’ (the power of the workforce’) published this month, one of the recommendations that we note is that the sector's salary levels should be reconsidered, reflecting the higher training and regulatory requirements, and, as part of that, the Childcare Offer rate should be increased to at least £5 per hour, per child.
Mudiad Meithrin and Cwlwm are therefore extremely pleased and welcome today’s announcement”.
Claire Protheroe, National Manager for Wales for the Professional Association for Childcare and Early Years (PACEY Cymru) said:
“PACEY Cymru welcome the announcement on the rise in the rate to be paid to providers delivering the Childcare Offer for Wales this follows engagement with the sector to hear their views and it is positive these have been reflected on and valued. There have been, and continue to be, challenges for the sector with Covid-19 and the rising costs of living impacting on confidence in relation to ongoing financial viability. In particular PACEY Cymru are concerned about the ongoing decline in registered childminders in Wales and we know the sector is in a fragile place. This announcement is a positive step forward in relation to supporting wider financial sustainability of all settings in Wales and recognition of the rising cost of delivery of quality childcare and play services.”
Jane O’Toole, Chief Executive Officer, Clybiau Plant Cymru Kids’ Clubs said:
“Clybiau Plant Cymru Kids’ Clubs welcome the announcement on the rise in the rate to be paid to providers delivering the Childcare Offer for Wales. Out of School Childcare has been one of the hardest hit of all childcare providers during the Covid-19 pandemic, the rise in the rate will allow settings to support the sustainability of the childcare they offer, including holiday childcare.”
Purnima Tanuku OBE, Chief Executive Officer, National Day Nurseries Association said:
“Nurseries and childcare providers will welcome this increase in funding rates from the Welsh Government. As providers face rising costs with higher energy, food and staffing costs it is important that Government funding for early years and childcare places keep pace. We welcome the commitment to regularly review the funding but this may need to happen more frequently if cost pressures continue to increase. This uplift will help ensure greater sustainability for the sector - meaning families will be able to access the high-quality early education and care places they need. This investment in children’s futures supports their development and life chances but is also vital for allowing parents and carers to work, study or retrain.”
Dave Goodger, Chief Executive Officer, Early Years Wales said:
“Early Years Wales welcomes the decision made by Welsh Government to announce a rise in the rate to be paid to providers delivering the Childcare Offer for Wales. We are pleased that the recent engagement with the sector by Welsh Government, and views shared from our members by Early Years Wales and Cwlwm partners have been reflected on and acted upon to increase the funding to providers. The challenges faced by the sector during the pandemic and in light of increasing costs for food and utilities had left significant pressures on budgets; this Childcare Offer rate increase will support the sector to continue to provide quality childcare. It is a positive intervention from Welsh Government at a time when the sector has been concerned about economic sustainability in the short and medium term.
We look forward to continuing to work with Welsh Government in support of plans announced in the cooperative agreement for Government relating to the childcare sector in the coming months and thank the Deputy Minister for Social Services and Welsh Government for reviewing the Childcare Offer Funding and making this positive announcement.”
Notes to Editors:
Cwlwm is made up of five organisations with Mudiad Meithrin as the lead organisation. Cwlwm organisations are Clybiau Plant Cymru Kids’ Clubs, Early Years Wales, Mudiad Meithrin, National Day Nurseries Association (NDNA Cymru) and PACEY Cymru.
Cwlwm supports Welsh Government to ensure that families across Wales can access affordable, quality childcare providing innovative solutions to create flexible childcare and play opportunities to meet the needs of parents and their families.
Cwlwm brings together the five leading childcare organisations in Wales to deliver a bilingual integrated service that will ensure the best possible outcomes for children and families across Wales.
Further enquiries: Siwan Thomas, Cwlwm Head Officer: [email protected]. 01970 639639.