Welsh Government accelerates funded childcare expansion/Llywodraeth Cymru yn cyflymu’r gwaith o ehangu gofal plant a ariennir

The Welsh Government has confirmed a £55 million investment in childcare, including the rollout of funded childcare to more two-year-olds across Wales and £10m capital funding, as part of the First Supplementary Budget 2026-27. This funding will help to accelerate the rollout of 12.5 hours of funded childcare per week to all two-year-olds, delivered through local authorities.

£10m capital funding will help to enhance and expand childcare settings, improving the quality, capacity and accessibility of early years provision. The funding will play a vital role in supporting childcare by helping manage rising demand, strengthening the long-term sustainability of providers, and supporting Welsh-medium childcare - contributing to the Welsh Government’s ambition of reaching one million Welsh speakers by 2050. The funding represents a significant step towards the Welsh Government's commitment to provide 20 hours of funded care per week for all children aged nine months to four years old. At full rollout, the new childcare offer will be the most generous anywhere in the UK.

Deputy First Minister for Wales, with responsibility for childcare, Sioned Williams said:

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.

I'm particularly pleased that Wrexham is now expanding its childcare offer to all two-year-olds, and we will continue to work closely with local authorities across Wales to roll this out everywhere. This is spending with purpose, with every pound working harder for Wales.

Claire Protheroe, Head of Contracts and Projects for Coram PACEY said:

This announcement is a positive and welcome step for families in Wales, and Coram PACEY Cymru recognise the important investment being made to expand access to funded childcare. However, if this ambition is to be fully realised, much more work is needed to ensure the childcare and playwork sector is properly supported to deliver it. Wales must be bold in how it builds a sustainable early years and childcare system — not only by investing in places, but by reviewing the systems and mechanisms through which funded childcare is delivered, so that they work for children, families and providers.

Childminders play a vital role in offering flexible, high-quality childcare in communities across Wales, yet the number of registered childminders continues to decline. This should be a clear warning that expansion cannot be achieved through funding announcements alone. Sustained investment is needed to support the recruitment and retention of childminders, reduce barriers to entering and staying in the profession, and ensure funding rates and delivery models are financially viable for providers. Without this, families may still face limited choice and access, particularly where flexible, home-based childcare is most needed.

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