Funding rate for Wales for three and four year olds to increase to £6.40
The Welsh Government has announced today that the funding rate for three and four-year-olds across the country will increase by an additional 40p from April.
In December the rate review agreed a new funding rate for childcare places of £6 from April 2025. But following negotiations with Welsh Liberal Democrat Leader, MS Jane Dodds, it will be increased to £6.40.
NDNA Cymru’s recent survey discovered that 89% of providers would still make a loss on the £6 per hour rate once the additional staffing costs are brought in from April.
The new funding rate of £6.40 per child per hour will support providers to meet some of these additional costs but is expected to still leave most private nurseries with a shortfall.
Purnima Tanuku CBE, Chief Executive of National Day Nurseries Association (NDNA) Cymru said: “This new deal which has been struck is a positive step in the right direction for the early years sector across Wales and shows that the Welsh Government is committed to supporting providers delivering vital early years places.
“We have just surveyed our member nurseries in Wales and 89% of respondents told us that the previously announced £6 per hour Childcare Offer funding rate would not cover their costs. The new and increased rate will help close the gap which has opened up over three years of providers receiving the same rates as costs rapidly increased.
“Private day nurseries across Wales deliver high quality early years education and care for children under the age of two, supporting their development and enabling parents into work. They need to be sustainable so they can continue with this important work.
“As plans are developed for the Flying Start expansion, local authorities and the Welsh Government must work with providers to ensure the funding package takes into account all the extra costs of caring for our youngest children and are supported to be flexible to meet families’ needs.”
You can read more about the article from Welsh Government here.
- Wales
