£55m childcare funding boost announced

Nation.Cymru staff

More families across Wales are set to gain access to free childcare after the Welsh Government announced a £55 million package to expand provision and increase capacity in the sector.

The money, included in the First Supplementary Budget for 2026-27, will support the rollout of 12.5 hours of childcare a week for two-year-olds and help providers expand their facilities.

Of the total, £10 million has been allocated for improvements and expansion work at childcare settings.

The announcement comes as Wrexham joins Swansea, Merthyr Tydfil and Newport in offering funded childcare to all two-year-olds in their local authority areas.

The Welsh Government has previously committed to extending childcare provision further, with plans to eventually provide 20 hours of funded childcare a week for children aged between nine months and four years.

Deputy First Minister Sioned Williams said the funding would accelerate the rollout of childcare provision across Wales.

She said: “This investment shows we are accelerating our commitments to the families of Wales.

“Childcare costs in Wales are the highest in the UK and I am determined to help families all over Wales, while also supporting children’s development.

“I’m particularly pleased that Wrexham is now expanding its childcare offer to all two-year-olds, and we will continue to work closely with local authorities across Wales to roll this out everywhere.”

The Welsh Government said the funding would also support childcare providers facing increased demand and help expand Welsh-medium childcare provision.

An Expansion of Childcare Expert Steering Group has been established to advise on the next stages of the rollout, including workforce planning, digital application systems and access to services.

The expansion is being introduced in phases through local authorities, with four council areas now offering funded childcare to all two-year-olds.