Early Years Wales has produced results from its recent survey to members asking for their views on recent announcements made by the Welsh Government regarding the childcare rate.
In December 2024 the Welsh Government produced its draft budget, stating that the childcare rate would see a 20% rise, an overall uplift from £5, to £6 per hour. Early Years Wales launched a survey soon after this announcement, gathering views of the sector about whether they thought the uplift was enough.
A total of 83 members responded to the survey, which included the opportunity for responses to be made to closed and open questions, gathering statistical data and longer form quotes in order to gain a full understanding of opinions. Responses were kept anonymous, in order to allow each respondent to provide a candid view of their experiences. Key statistics ascertained from the survey were as follows:
- 69% of respondents operated in full day care settings.
- 65% of respondents operated settings which were private businesses.
- 54% of respondents answered 'Strongly disagree' to the statement: Would you agree that the uplift in wages is affordable within your current income / expenditure.
- 85% of respondents feel the need to increase costs for parents to help keep their setting functioning.
This was reflected in the longer form responses:
"My setting will not survive another year if (the Welsh Government) do not allow us all to charge the shortfall"
"We have always endeavoured to offer high-quality childcare and have reached a point where we need put a huge increase to the fees for parents who pay for their childcare place, in order to cover the shortfall from funded places."
"To truly follow through on their commitment to the first 1,000 days and prioritising children, Welsh ministers must ensure that investment in early years services is both meaningful and sustained."
These responses paint a rather grim picture of the current state of finances in the sector. This is why it is welcome to hear of the revised uplift to the rate of £6.40, as announced in the final revised Welsh Government budget.
CEO of Early Years Wales, David Goodger, said:
"The findings from our survey make for difficult reading, painting a picture of a sector in which settings from across Wales are having to make difficult decisions about how their setting can continue their operations. However, I welcome the recent announcement of the revised uplift to the hourly rate, from £6 to £6.40. This is a step in the right direction, and it is clear that the Welsh Government is committed to ensuring that the early years sector remains supported. I look forward to continuing to work with the Welsh Government, voicing the views of our membership to help inform policy targets".
| Attachment | Size |
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 Early Years Wales Report into the Childcare Rate for Wales 2025 | 482.95 KB |
gov.wales