Registered childcare premises will no longer have to pay business
rates, saving millions of pounds every year.
Estimated to save the sector £3.4 million annually, the now
permanent non-domestic rates relief for childcare premises will
support childcare providers to invest in staff, create new jobs
and reduce fee increases for parents.
Since 2019, premises like day nurseries have not paid business
rates in Wales thanks to the small business rates relief scheme -
helping many tackle rising costs and continue to operate.
Minister for Children and Social Care, said:
“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.”
Cabinet Secretary for Finance and Welsh Language, said:
“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.”
Chief Executive of the National Day Nurseries
Association, Purnima Tanuku OBE said:
“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.”
Managing Director for Daisy Day Nursery, Abeer Bafaqih
said:
“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.”
Notes to editors
Notes to editors
- Registered childcare premises in Wales have had 100% business
rates relief since 2019 on a temporary basis, but the full 100%
rates relief has now been made permanent by the Welsh Government.
-
Non-Domestic Rates -
Small Business Rates Relief | Business Wales
-
NDNA: National Day Nurseries Association
(NDNA) is the national charity representing children's
nurseries across the UK.
