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Point to note

If you are using this scheme to provide awards of subsidy, you must inform the Subsidy Control Unit – email:

1. Region

All Wales

2. Title of subsidy scheme

Childcare and Early Years Capital Programme

3. UK legal basis

The Government of Wales Act 2006 and in particular Sections 58A and 60.

4. Objectives of the scheme

The main objectives for the Childcare and Early Years Capital Programme are to ensure that the childcare sector in Wales is strengthened and supported. This funding also helps support the Programme for Government commitments to:

  • fund childcare for more families where parents are in education and training or on the edge of work
  • deliver a phased expansion of early years provision, to include all 2 year olds, with a particular emphasis on strengthening Welsh medium provision
  • continue to support the flagship Flying Start programme.

5. Public authority(ies) authorised to implement the scheme

Welsh Government

6. Category(ies) of eligible enterprise

Registered day care and childminders and those working towards registration with Care Inspectorate Wales.

7. Sector(s) to be supported

  • Education
  • Other service activities (to include Childcare and Early Years)

8. Duration of the scheme

1 April 2023 to 31 March 2025

9. Budget for aid under the scheme


10. Form of support

All subsidy awarded under the scheme will be transparent. Aid may be awarded by way of grants.

11. Eligibility terms and conditions

The childcare sufficiency assessments completed by local authorities will identify gaps where there is a need for childcare provision and hence capital funding. Eligibility for funding will be for day care and childminders registered with Care Inspectorate Wales or an in the process of being registered to apply for capital funding through the relevant local authority.

12. Basis for calculating subsidies

We propose using the 4 ‘definitions’ in schedule 1 of the childcare statutory guidance. These are:

  • Welsh Medium Setting - Welsh is the main day to day language of the setting. Welsh is the language of all activities, and is the language of communication with all children and young people. It is also the language of the setting’s administration. The setting communicates with parents either in Welsh or in both Welsh and English according to parental preference. Children from all language backgrounds are welcomed into the provision.
  • Welsh Medium and English Medium Setting - Both Welsh and English are used side by side as languages within the setting and has full bilingual elements. Welsh and English are used as languages of communication with the children and young people and both languages are used for activities. Both languages are used for the setting’s administration. The setting communicates with parents either in Welsh or in Welsh and English according to parental preference.

Weighting criteria as below.

We recognise the importance of highlighting and supporting policy drivers; we are proposing that applications to the Capital Grant for Childcare and Early Years are weighted against the following criteria:

  • Welsh Medium Provision  – Where a scheme directly supports the expansion of Welsh Medium Provision it would be weighted at 30% for immersive provision, and 20% for bi-lingual provision.
  • Co-location - for example on school sites, at Community or Health Hubs – Where a scheme directly supports Welsh Government’s co-location of services agenda, it would be weighted at 25%.
  • Expansion of Childcare Offer, Flying Start or Foundation Phase Nurseries in a childcare setting – A scheme would be weighted 10% for each aspect that would be provided within a bid. Therefore, a scheme that is offering foundation phase in a Flying Start setting and accepting children under the Childcare Offer would be weighted as 30%. For those childcare settings delivering the Childcare Offer but nothing else, the weighting would be 10%.
  • Expansion of places – The business case for a scheme would have to clearly set out the scale of expansion from existing provision being delivered, for example capital investment would result in capacity of the setting increasing from X to Y. The weighting would increase proportionate to the increase in provision, up to a maximum of 15%.

13. Maximum subsidy allowable under the scheme

There is not a maximum amount as each project will be different and dependent on need. Although based on previous experience and value will aim not exceed £2 million.

14. Contact information

Subsidy Control Unit

Welsh Government
Cathays Park
Cardiff CF10 3NQ
United Kingdom

Telephone: + 44 (0)3000 604 400

Rydym yn croesawu galwadau a gohebiaeth yn Gymraeg / We welcome calls and correspondence in Welsh.