Rolling back on childcare commitments?

Poverty A photo of a child playing outdoors at a nursery
Image by Carole LR from Pixabay
ViewsOctober 7th, 2024

The Bevan Foundation’s Head of Policy (Poverty), Steffan Evans explores what recent Welsh Government comments might mean for childcare policy

Finding good quality, affordable, childcare has long been a challenge for families across Wales. Back in January, the Bevan Foundation published a report that showed just how important it is that this challenge is addressed if poverty and inequality are to be reduced.

There had been hopes that the Welsh Government might step up its work to address the barriers to affordable, quality childcare over the coming months. A document put out by the Welsh Government over the summer, however, has raised concerns that it could be about to roll back on its existing commitments.

What support do parents get with childcare at the moment?    

Parents in Wales are entitled to support with their childcare costs through a mixture of UK and Welsh Government programmes, depending on the age of the child and the employment status of the parent.

There is some financial support available for working parents of under-2s through the UK Government’s Tax-Free Childcare or via Universal Credit, both of which reduce the cost of childcare although do not cover it in full. Once a child reaches two years of age, some families become eligible for some funded childcare. The Welsh Government’s Flying Start programme provides free, part-time childcare to two- and three-year-olds living in Wales’ most deprived communities, along with additional support for parents.

It is only when a child reaches the age of three years that provision increases.  All three-year-olds are entitled to 10 hours a week of free Foundation Phase education, usually starting in the term after their third birthday. The families of three-year-olds whose parents work at least 16 hours a week (and neither parent earns more than £100,000) or who are in full-time training are entitled to a further 20 hours a week of free childcare on top of the early years education.

What extra support had the Welsh Government committed to?

In November 2021 Labour and Plaid Cymru announced their Co-operation Agreement. Among the policies that the parties committed to implement through the agreement was the expansion of “free childcare to all two year-olds”.  

In 2022 the Welsh Government announced that the Co-operation Agreement commitment would be met by expanding the childcare element of Flying Start to all two-year-olds. This would mean that all two-year-olds, regardless of their parents’ employment status, could benefit from 12.5 hours of funded childcare a week.

It was to be delivered via a phased approach. Phase 1 started in September 2022 with the aim of expanding provision in Wales’ most deprived communities. Phase 2 began in April 2023 with the aim of expanding the availability of Flying Start more widely by March 2025.  Phase 3, the phase where Flying Start was expanded to all two-year-olds, was due to start in April 2025.  

What are the Welsh Government now saying about providing extra support?

In July 2024 the Senedd’s Equality and Social Justice Committee published the findings of their follow-up inquiry into childcare provision in Wales. The report made a number of interesting recommendations about how childcare provision could be improved in Wales.

Of equal interest, was the Welsh Government’s written response to the committee’s recommendations. It is this response that is raising concerns about whether the Welsh Government is still committed to expanding childcare to all two-year-olds.

In their response, the Welsh Government notes that 60% of two-year-olds across Wales will be able to access Flying Start (Childcare) by the end of 2024/25. It goes on to note that while the Welsh Government “remain committed to the objective” of expanding early years provision for all two-year-olds, the difficult financial landscape means that they are “not currently in a position to confirm any new developments to childcare”.

What does this mean for children and their families?

The Welsh Government’s lack of commitment to Phase 3 of its childcare expansion must be a big concern to the parents and carers of the 40% of two-year-olds that will not be eligible for Flying Start (Childcare) by next April. The Welsh Government’s reiteration that it is committed to further expansion will come as scant relief if there are no firm plans as to how that commitment will be realised.

The impact of this apparent policy shift goes further, however. As the Bevan Foundation’s report earlier this year highlighted, there are significant problems with childcare provision. From the lack of support for younger children to difficulties in accessing existing schemes, there is an urgent need to get to grips with Wales’ childcare system. The rowing back from the changes promised in 2021 will delay the time when all children in Wales can access good quality, affordable childcare.

Dr Steffan Evans, is Head of Policy (Poverty) at the Bevan Foundation 

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