There is widespread evidence that accessing high-quality early childhood education and care can improve children’s cognitive and social development, and is particularly beneficial for less advantaged children. However, several recent reports have raised concerns from parents and childcare providers about aspects of the early childhood education and care system in Wales.
Ahead of the Plenary debate on the Senedd’s Equality and Social Justice Committee (the Committee) report on childcare on 4 December, our article looks at the key issues facing parents and providers.
For details on the childcare support schemes available in Wales, read our guide to early years childcare entitlement.
A “confused and fragmented” system lacking “a clear vision”
For a number of years, the Committee has called for action to be taken to increase awareness and understanding of the early childhood education and care system. However, widespread concerns remain about the complexity of the system, and how this affects take-up of the Welsh Government’s childcare support schemes.
Dr David Dallimore described the early childhood education and care system in Wales as:
…this piecemeal funding approach, which is just really complicated for parents. We know that it makes it difficult for them to understand what they’re entitled to claim and what would be best for them financially.
There have been calls for a single funding system and application process to address these concerns. Natalie McDonald of the University of Wales Trinity St David wanted to see:
…a more universal funding system that's almost like a one-stop shop— as the child progresses you're able to access that.
The Committee described the Welsh Government’s approach to early childhood education and care as “confused, fragmented, and [lacking] a clear vision”. It called for the Welsh Government to consolidate the different childcare support schemes, and streamline application processes.
The Welsh Government has established Teulu Cymru, which provides information for families on childcare and financial support. Recently, the Minister for Children and Social Care said the Welsh Government is committed to simplifying childcare funding streams, and is exploring the suitability and complexity of the childcare system.
Families facing “high and escalating” childcare costs
An average earner in the UK faces some of the highest childcare costs in the world. Oxfam Cymru says that:
The childcare landscape in Wales is characterised by a high and escalating cost with limited financial support rendering it increasingly unaffordable and out of reach for many families.
Oxfam Cymru found that 92% of parents and guardians responding to its Wales-wide survey felt childcare costs are too high relative to their income levels. It also reported 70% of parents and guardians reported having no surplus income or savings after allocating funds for childcare.
In 2021, the Welsh Government committed to rolling out 12.5 hours per week of Flying Start childcare provision to all two-year-olds in its Co-operation Agreement with Plaid Cymru. This is the main expansion of childcare provision in Wales over recent years.
Last month, the Minister for Children and Social Care confirmed that the Welsh Government has commissioned all local authorities to prepare expansion plans for full roll-out of the third and final phase of delivering the Flying Start childcare commitment to two year olds across Wales. However, the Minister acknowledged that additional funding needed to deliver this depends on the Welsh Government’s draft budget, which will be published next week.
“Sustainability is a major concern” for childcare providers
Childcare providers said sustaining their provision is a “major concern”. While the Welsh Government has recently made business rate relief for childcare providers permanent, there are wider concerns about financing the sector such as the level of government funding provided. Since April 2022, providers receive £5 per hour for Childcare Offer provision, and this is currently being reviewed by the Welsh Government. Providers have faced considerable financial pressures over recent years, such as rising energy, food and staffing costs.
A survey by Early Years Wales found 94% of childcare providers said the current funding rate for the Welsh Government Childcare Offer doesn’t cover their costs, and called for an hourly rate of £6-£8. The survey also found that while 72% of childcare providers were confident they could sustain the current model for one year, only 20% were confident they could for two years.
The Committee called for the Welsh Government to give certainty to providers that a “much-needed” increase in the Childcare Offer hourly rate is on the way. However, providers remain unsure how much they will receive per hour, and will not know until sometime after the draft budget is published next week. The Committee also called for a move to annual reviews of the hourly rate. The Welsh Government confirmed this will happen from 2025-26.
Early Years Wales said the hourly rate paid to childcare providers is key to making employment in the childcare sector an attractive prospect, and reducing staff turnover. Childcare representative bodies feel that their staff are underpaid and undervalued, but that providers cannot afford to pay higher wages.
The Committee concluded that childcare workers’ dedication to the job has been relied on for “too long”, and called for the Welsh Government to ensure childcare providers are given sufficient funding to pay the Real Living Wage to all childcare workers.
Providing childcare for all
Research for the Wales Centre for Public Policy highlights investment in quality early childhood education and care can ”help level the playing field” for children from more deprived backgrounds. Professor Mari Rege, head of the Norwegian Government’s expert group on child poverty, said that:
…to give these children better opportunities to actually not end up as poor themselves when they grow up, I, at least, don't know about any more effective tool than early childhood education, to actually bring them in to childcare.
However, there are concerns that the Welsh Government’s approach of focussing Childcare Offer support on working families risks exacerbating existing inequalities faced by children from non-working families. The Bevan Foundation has said the current approach “risks entrenching disadvantage at an early age as children miss out on the benefits of high-quality childcare”.
Children with additional needs and/or disabilities face long-standing challenges in accessing childcare. Coram Family and Childcare found just 5% of Welsh local authorities have sufficient childcare provision for disabled children.
Our article on the Children, Young People and Education Committee’s inquiry into access to childcare and education for disabled children outlines how this impacts children and families.
The Committee called for the Welsh Government to work with partners to develop realistic timescales for guaranteeing that children with additional needs can access childcare provision. The Minister for Children and Social Care has said she is “committed to breaking down the barriers to enable all children and their families to access childcare as required”.
Next steps
You can watch the Plenary debate on the Committee’s report on Senedd TV. And keep an eye out for how childcare fares in the Welsh Government’s draft budget, due for publication on 10 December.
Article by Gareth Thomas, Senedd Research, Welsh Parliament
