Welsh Government commits to reviewing funding rate annually
Following years of lobbying from NDNA and other early years organisations, the Welsh Government announced yesterday (Wednesday 20 November) that they will review the Childcare Offer for Wales on an annual basis.
The Childcare Offer providers up to 30 hours of government-funded early education and childcare per week during 48 weeks of the year for eligible families with three and four-year-old children.
The Welsh Government was reviewing the rate paid to providers every three years but following consultation with the sector has made the move to annual reviews.
The rate is currently being reviewed but NDNA Cymru has said that it must include additional costs which providers will have to pay from April 2025 including statutory minimum wages and National Insurance Contribution rises.
Purnima Tanuku OBE, Chief Executive of National Day Nurseries Association (NDNA) Cymru said: “Over the last few years, we have seen how susceptible early years settings can be to inflation and economic changes, so it’s important that governments review the rates they pay for funded places on an annual basis.
“We have been calling for this change for a number of years and really welcome that the Welsh Government has listened to the sector about making their rates review an annual process.
“As we have seen with National Insurance Contributions and statutory minimum wage rises, and the latest inflation data, if rates don’t keep pace with rising costs this can negatively impact the sustainability of early years providers. This in turn has a knock-on effect for families and children who rely on high quality early education and care.”
- Wales
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