The BBC“Critical early years education” in Wales is at risk without significant financial support, a nursery boss says.
Childcare providers have united to tell the Welsh Government that the support it provides is failing to meet their costs.
Alice Jenkins, who runs a nursery in Newport, said costs had risen by 40 per cent in recent years, and her business was losing more than £30,000 a year.
The Welsh Government said It made business rate relief permanent for the sector. And nursery providers will review their childcare offering annually instead of every three years.
Childcare providers say the permanent business rate relief is a positive step, but it does not take into account the impact on the sector of the life crisis and rising wage bills.
Lisa Owen, director of Chuckles Nursery in Bettws, Newport, said the shortage was costing her £1,500 a week.
“We haven’t paid business rates since 2018, so I don’t see, when the climate has changed as much, why it’s helpful for us at this point,” she said.
“We can’t cut corners… Electricity, water rates, everything is going up, so we’re up against it all the time.
“Sixty per cent of my turnover goes to staff wages, they have gone up so we are under a lot of financial pressure and we have to make sure we are trading within our costs.
“Part of our regulations dictate that we have to be sustainable to protect children because we can’t just close tomorrow.”
“Costs have gone up by 40 per cent in the last three or four years and that’s the cost of inflation as well as the increase in the national wage,” said Mr Jenkins, Sunnybank’s nursery managing director.
“At the moment we are looking at a shortfall of over £30,000 a year. We are very dependent on staff.
“Recruitment and retention are difficult and this extra money will not only go towards helping us financially but also helping us reinvest in our teams, making the sector more attractive to work and retain people. will enable.”
Businesses want the Welsh Government to raise the childcare offer funding rate to £8.80 an hour to reflect inflation and rising wages, arguing that the whole economy would benefit.
“We provide vital early years education here that prepares children for school,” Mr Jenkins said.
“The economic benefit of investing in childcare in the early years is profound: we allow parents to return to work, we provide a safe place for children while they are at work and so the benefits Not just for children, but for the Welsh economy.
“It’s about being a focal point within communities.”
The Welsh Government said: “We recognize the financial pressures facing childcare providers in Wales and have taken action to support them.
“We have made small business rates relief for registered childcare premises in Wales permanent and childcare providers will be paid annually, instead of every three years, as part of the childcare offer. Have moved to review hourly rates.
“We are also investing more than £100m a year in the sector to maintain and grow high quality childcare.
“We want Wales to be an environment where childcare providers can thrive and are in constant dialogue with partners across the childcare sector. [Cwlwm – a consortium of five childcare organisations] About how additional support can be provided.