Welsh Government Allocates £55m to Expand Childcare for Two-Year-Olds

£55m to boost childcare for two-year-olds, Welsh government says

An extra £55m will be spent this year to roll out childcare to more two-year-olds, the Welsh government says.

Plaid Cymru has come under pressure since May's election to spell out how it will afford and roll out its flagship policy for babies from nine months to four-years-old.

But now it says it has allocated extra cash to provide 3,300 new places for two-year-olds, providing 12.5 hours of childcare a week.

Plaid says it is new funding and will be part of its first supplementary budget, expected to be published on 23 June.

Meanwhile, the administration says Wrexham has joined three other authorities in providing childcare to all two-year-olds in its area.

Plaid plans to roll out its universal childcare offer, providing 20 hours a week, before the next Senedd election, which is scheduled for May 2030.

The government, led by First Minister Rhun ap Iorwerth, has not said exactly when babies aged nine months will benefit, or what could be cut to afford the plan. The government has confirmed the scheme will be phased in first by expanding the previous government's provision for two-year-olds.

In a debate last week, Reform UK said it was not clear if the Plaid policy was affordable or realistic. Plaid said it would provide more detail before the Senedd recess in July.

BBC Wales was told that the £55m extra will fund 3,300 places within the Flying Start arrangements.

A further £10m would also be spent on enhancing and expanding childcare settings.

It is understood the cash announced will come from the extra money unspent from the previous Labour budget, thought to be around £300m.

As it is a part of the supplementary budget, the money depends on Plaid Cymru winning a crucial vote in the Senedd before the middle of July.

Plaid does not fully control the Welsh Parliament as it is short of a majority and it will need a deal with another party, likely either Labour or the Tories.

Deputy First Minister Sioned Williams, who is responsible for implementing the childcare policy, said on Tuesday: "This investment shows we are accelerating our commitments to the families of Wales.

"Childcare costs in Wales are the highest in the UK and I am determined to help families all over Wales, while also supporting children's development."

BBC Wales reported on Sunday that councils were facing serious challenges in expanding free childcare because of a lack of resources and staff.

Research for Politics Wales found councils were struggling to deliver the previous Labour government's more limited commitment of 12.5 hours a week to all two-year-olds.

Until Tuesday only Swansea, Merthyr Tydfil and Newport were funding childcare under Flying Start for all two-year-olds in their area.

Wrexham has now announced that it will join them - the first authority in north Wales to do so. There are 22 local authorities in Wales.

Flying Start was originally aimed at disadvantaged areas but was gradually expanded to provide more childcare for two-year-olds.

Welsh Labour's childcare spokesperson, Lynne Neagle, welcomed the announcement from Wrexham.

She added: "We await further information on the government's supplementary budget, but as it stands there are still many unanswered questions around the funding commitments."

How does funded childcare in Wales work?

Under the Childcare Offer for Wales, most parents and carers of three and four-year-olds are entitled to 30 hours of funded childcare each week, starting the term after a child turns three.

The offer includes at least 10 hours of early education plus up to 20 hours of childcare, though not all childcare settings provide the education element.

Funding is available for up to 48 weeks of the year and covers the costs of care and education only. It does not include things like food or transport.

Eligibility requires both parents/carers to be in work or training for at least 16 hours a week, and households earning over £100,000 per parent are excluded.

Parents and carers of two-year-olds in some parts of Wales are also eligible for up to 12.5 hours of funding per week as part of Flying Start.

Flying Start was initially introduced to provide childcare funding for parents in low-income areas. The then-Welsh Government promised to expand rollout to all two-year-olds in Wales in 2022, but only four local authorities are currently providing funding for all two-year-olds in their area.

The UK Government also provides Tax-Free Childcare for children aged 11 and under, which for most is worth up to an extra £2,000 a year. Eligibility criteria is similar to the Childcare Offer for Wales.

There is currently no other funded childcare provision for children under two in Wales.

What has the Welsh government promised?

The new Welsh government has pledged to increase childcare funding and widen eligibility by the end of its current term.

On top of maintaining the existing Childcare Offer for Wales for three and four-year-olds, it has promised to offer 20 hours of funding per week to all parents and carers, regardless of employment status or income.

No timescale has been provided for the enhanced rollout in Wales. The Welsh government has said it will initially focus on expanding the existing Flying Start scheme across all of Wales.

Additional reporting by Joe Langstaffe