Invest in care, invest in Wales: the urgent case for funded childcare

Sarah Rees, Head of Oxfam Cymru

From September 2025, parents in Wales will be missing out on thousands of pounds in government-funded childcare support compared to families elsewhere in Great Britain.

Parents in England with children under 2 will receive up to £2600 more support per year than Welsh families – and for part-time care, the gap widens to as much as £ 4400 annually.

The situation isn’t much better when compared to Scotland. Parents in Wales will still pay around £1700 more per year than Scottish families for the same level of childcare.

That means Welsh families are being hit hardest with childcare costs — simply because of where they live. It’s unfair, and it needs to change.

Here in Wales, we’ve seen some improvements — like the Welsh Government promising to expand the Flying Start programme to all 2-year-olds.

But the roll-out is happening too slowly and doesn’t go far enough, with just 60% of parents of 2-year-olds currently eligible to apply for only 12.5 hours of funded childcare.

Timetable

Oxfam Cymru calls on the Welsh Government to confirm a clear and urgent timetable for delivering this promise. Families deserve to know when support is coming — and the Government should be working with Oxfam Cymru, and other experts, to co-create a proper plan for funded childcare starting from 9 months old.

Why 9 months? Because that’s when paid parental leave ends — and it’s the point at which many parents, especially mothers, face the difficult decision about whether to return to work or not.

Oxfam Cymru welcomes the progress made so far, including the Welsh Government’s focus on ensuring quality childcare and increasing the number of places available as expansion continues. However, amid the ongoing cost of living crisis, life is getting harder for families in Wales.

Unless urgent action is taken, by the end of this summer, Wales risks having the worst-funded childcare in Great Britain. That’s simply not good enough for families trying to work, study, or make ends meet.

Childcare changes lives

Investing in childcare has enormous benefits for Wales. It gives children the best start, helps parents go to work, and boosts the economy. But right now, many Welsh families simply can’t afford it.

High-quality childcare is also a powerful and effective tool in tackling child poverty — not only by maximising parents’ opportunities to work and earn in ways that are economically viable for their families, but also by helping to mitigate the impact of poverty on children’s early development and long-term outcomes.

To put this into perspective, child poverty remains a stark reality in Wales. One in three children live in relative income poverty, rising to almost half (45%) of all children aged 0–4 years. That’s why Oxfam Cymru is calling on Welsh Government to make childcare a top priority – because properly funded childcare isn’t just helpful, it’s a key lever in tackling child poverty head-on.

The figures are even more concerning for children in single-income households, where 51% are living in poverty. Crucially, poverty isn’t just affecting families out of work — seven in ten children living in poverty have at least one parent in employment, underlining the urgent need for affordable, accessible childcare as a tool for both supporting families and tackling poverty at its root.

When childcare is unaffordable or hard to access, it’s usually mothers who have to make the impossible choice to give up work. That keeps women out of jobs and worsens inequality.

These figures are all trending upward rather than being reduced, in spite of the Welsh Government’s stated aims to tackle child poverty. While the Welsh Government has set out strong ambitions and made clear commitments, current progress is falling short of what’s needed.

By its own measures, there is still a significant gap between its stated priorities and the policies being delivered on the ground.

We know what works – let’s make it happen

Other parts of the UK are making childcare more affordable. Wales can too – Oxfam Cymru,  renews our call for Welsh Government to do more – and faster – by:

Expanding Flying Start to all, now

While Flying Start has its limitations and may not fully meet current needs, it remains better than no provision at all. More families need access and they need it now.

Bridging the gap across the existing childcare offers

Wales’ two main childcare support programmes — Flying Start and the Childcare Offer for 3–4-year-olds — currently serve different groups of parents. Flying Start targets families in the most deprived areas, while the Childcare Offer is limited to parents who are already in work. But supporting only those who are already employed isn’t enough to tackle child poverty. A universal approach is needed — one that guarantees all children access to high-quality early years support, regardless of their parents’ employment status or postcode.

Start funding care for under-twos

Wales doesn’t offer any funded childcare for children under two — even though this is when families need it most. This gap in support begins right after paid parental leave ends — forcing many parents, mainly mothers, into impossible decisions about returning to work.

Funded childcare from 9 months old would change that, and bring Wales more in line with what’s being delivered across the border. Without a clear plan to expand access to funded childcare for this age group it creates a significant gap in provision during the earliest and most formative years of a child’s life.

Support the childcare workforce

Addressing the crisis in the childcare sector is essential. The sector is under immense pressure, and none of the wider ambitions for families and children will succeed unless we properly support the people at its heart. Childcare workers provide expert, skilled care to our most loved ones during their formative years — yet too often, they are undervalued.

Ensuring fair pay, high-quality training, and decent working conditions isn’t just the right thing to do, it’s vital to sustaining a sector that families rely on and children deserve.

Time to Act

Families in Wales are being short-changed — and they can’t wait any longer.

Investing in childcare is one of the most effective ways to tackle poverty and mitigate the impacts of poverty, support parents, and give children the best start in life. It’s good for everyone — and it’s long overdue.

The Welsh Government needs to act now. Families in Wales deserve better.