Sioned Williams MS, Deputy First Minister and Cabinet Minister for Social Justice and Equality
Childcare costs in Wales are the highest in the UK, and the Welsh Government is taking forward a transformational universal childcare offer to help families all over Wales, while also supporting children's development.
I am writing to make Senedd Members aware of a major Welsh Government investment which will accelerate the expansion of funded childcare in Wales.
We will be investing an additional £55m in childcare this year. The extra investment will allow for the expansion of thousands of additional funded childcare places across Wales, focusing immediately on the expansion of childcare for two-year-olds.
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, our new childcare offer will be the most generous anywhere in the UK.
This funding will help to accelerate the rollout of 12.5 hours of funded childcare per week to all two-year-olds.
£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 the childcare system. It will help manage rising demand, strengthen the long-term sustainability of providers, and support Welsh-medium childcare - contributing to the Welsh Government’s ambition of reaching one million Welsh speakers by 2050.
This investment is part of the Welsh Government's First Supplementary Budget for 2026-27, to be published on 23 June. The budget sets out this Government's early spending priorities, targeting investment where it will make the greatest difference for the people of Wales.
Wrexham has today joined Swansea, Merthyr Tydfil and Newport in expanding 12.5 hours of childcare to all two-year-olds in their areas.
The recently formed Expansion of Childcare Expert Steering Group will advise on the development of the phased rollout, with a focus on workforce planning, digital applications and improving access for all families.
I will keep members informed as we continue to make progress in this important area.