A survey carried out before the Budget found that 91% of nurseries in Wales are expected to make a loss or break even this year. A nursery boss says “vital early years education” in Wales is at risk without significant financial help. Childcare providers have united to tell the Welsh government the support it offers fails to cover their costs. Ellis Jenkins, who runs a nursery in Newport, said costs had gone up 40% in recent years, and his business was facing an annual shortfall of more than £30,000.
Childcare providers say permanent business rate relief is a positive step, but does not take into account the impact the cost of living crisis and increased wage bills are having on the sector. Lisa Owen, director of Chuckles nursery in Bettws, Newport, said the shortfall 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 as it has, why that’s a help to us right now,” she said.
“Costs have increased 40% over the last three or four years and that’s inflationary costs as well as national living wage increases,” said Mr Jenkins, managing director of Sunnybank nursery. “At the moment we’re seeing a shortfall of over £30,000 a year. We’re heavily reliant on staff. Recruiting and retaining is difficult and that extra money wouldn’t just go toward supporting us financially but would enable us to re-invest in our teams, make the sector more attractive to work in and retain people.”
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