In part three of their 'Making ends meet' series, Nursery World interviewed our CEO, Dave Goodger and Early Years Wales trustees Lisa Owen and Clare Murphy along with member setting Little Stars Nursery to look at the different ways providers are having to diversify their services to remain sustainable.
Despite rising costs, funding rates for the Childcare Offer in Wales have stagnanted since 2022 with a funding rate review due in April 2025.
"We're pleased to see the Welsh Government engaging with the sector to find out more about what rates do to the market. I don't know how well it will go down to propose a sizeable 30-50 per cent uplift, but if we land anywhere between £6.50 and £7.50 per hour, we should be OK for now."
"I've spoken to providers who are offering new services, like baby rooms or atypical hours, to allow them to charge more and recoup some of their costs. Some are opting out of funding or limiting the number of places they offer so they can balance their staff costs. Some are fundraising, some are using up their reserves or operating at a loss, and some are relying on sustainability grants."
- Dave Goodger
Early Years Wales trustees, Clare Murphy (Bryn Coch Club) and Lisa Owen (Chuckles Nursery) gave insights to how they are managing.
"We pride ourselves on keeping on applying for grants, but it is ridiculous how much work you have to do for them, often at the most difficult times of year. The process can be very taxing" added Clare while Chuckles Nursery have implemented hourly rates to help reduce costs of staffing, "It also allows us to staff exactly the times we have children in, so we're not paying staff to stay on when children have already gone home."