Boost for childcare sector in Wales through business rates relief
Small business rates relief scheme introduced in 2019 is being made permanent to save childcare sector in Wales some £3.4m per year
A scheme introduced in 2019 to help the childcare sector in Wales is now being made permanent. Under the non-domestic rates relief scheme, registered childcare premises were exempted from paying business rates.
Photo by Annie Spratt
The aim of the scheme was to help those in the childcare sector tackle rising costs and continue to operate. Many were able to better invest in staff, create new jobs and reduce fee increases, effectively passing on benefits to their local community and parents.
The scheme has proved so effective that the Welsh government have now announced that the exemption will be made permanent. Many in the sector have welcomed the news.
Abeer Bafaqih, Managing Director of Daisy Day Nursery in Cardiff, says: ‘It is encouraging to see that the Welsh Government is recognising and considering the positions that childcare providers are in.
‘The decision to extend the relief of business rates is a significant step. It’s a financial burden that we’re relieved to learn the already strained sector won’t need to carry. At a time when we’re seeing families stretching their income, we are grateful that the relief means we will be able to continue to offer a reasonable fee structure to them. We look forward to the Welsh government’s continuing support and advocacy for the early years sector and the families using these services.’
Purnima Tanuku OBE, Chief Executive of the National Day Nurseries Association (NDNA), adds: ‘Following lobbying from NDNA Cymru and other Cwlwm partners, we are delighted that the Welsh government will continue with this rates relief for nurseries on a permanent basis.
‘Childcare providers across Wales have faced rising delivery costs making it more difficult to remain sustainable while delivering funded early years places. Permanently removing the burden of business rates is a positive step to helping nurseries and providing certainty. In making this decision, the Welsh government is recognising the value of supporting the early years sector.’
Dawn Bowden MS, Minister for Children and Social Care, says: ‘Childcare settings provide an essential service in Wales, offering nurturing environments for our children and helping parents to access employment, education or training. But we know that the sector is under significant pressure and in need of ongoing support to meet their costs.
‘Making business rates relief for registered childcare premises permanent will be a huge boost to the sector, providing stability and helping providers reinvest savings back into their business to continue delivering high quality, and affordable childcare. It is the right thing to do for our children, parents and providers now and for the future.’
Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language, adds: ‘Today’s announcement is part of our £100m annual investment and longstanding commitment to sustaining and growing high-quality childcare. We want the childcare sector to be financially sustainable and this scheme will help reduce the risk of premises closing, meaning that registered childcare premises can continue their vital services and benefit families across Wales.’
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