MS, Minister for Children and
Social Care: In April 2025, I announced that the Welsh Government
would be moving from a three yearly to an annual review for the
Childcare Offer rate. This approach is designed to strengthen
transparency and responsiveness and ensure funding decisions
reflect the real pressures facing childcare providers.
During Summer 2025, the Welsh Government sought the views of
childcare settings delivering the Offer through the Childcare
Offer's Annual Survey. These findings, alongside information
gathered through Care Inspectorate Wales' Self-Assessment of
Service Statement (SASS), have informed this year's rate review.
The outcome of the review has been considered carefully in the
context of wider Welsh Government spending decisions. We are
committed to ensuring sustainability for our programmes, and so I
have concluded that the hourly rate for the Childcare Offer
should be increased to £6.67, effective from 6 April 2026. This
4.18% increase maintains one of the most generous comparable
rates across the United Kingdom. It will help childcare settings
manage the impact of the forthcoming changes to the National
Living Wage and other rising costs.
Alongside this uplift, the maximum amount permitted for meals
charges will also be subject to a 4.18% increase. I believe that
this will continue to strike a balance between what is affordable
for the provider and what is affordable for the parent.
The Welsh Government will continue to work closely with the
childcare sector plus stakeholder representatives to explore
long-term, systemic ways in which we can support the
sustainability of the sector and encourage its continued
development within the framework of funded childcare programmes.
