Nursery Fees in Wales Leave Parents Trapped at Home

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Parents in Wales report being unable to work full time or pursue promotions due to the rising cost of childcare, which has surged to become the highest in the UK. While childcare costs for under-threes in England have more than halved, prices in Wales have increased significantly, according to separate surveys.

The 24th annual childcare survey by children’s charity Coram revealed that a part-time nursery place for a child under two now costs an average of £155.04 per week in Wales, a 10% rise, whereas in England it has dropped by 56%.

Caroline and Matt Stuart from Lisvane, who have two young boys, pay £780 a month for three days of childcare with a childminder, relying on Caroline’s father for the other two days. Caroline explained that although they receive the Wales 30-hour free childcare for their oldest child, full-time work hours exceed this, making full-time childcare unaffordable.

She said, “We use the cheapest options, my father two days and a childminder on the other three days as a childminder is cheaper than nursery,” adding that nursery costs would be more than her salary after tax and pension.

Caroline highlighted the complexity of the childcare system, pointing out that the government’s 30-hour offer forces parents to juggle between maintained schools and private nurseries, unlike in England where the offer can be used entirely at private nurseries.

She also noted that full-time work is 37.5 hours, not 30, so she works evenings from home to cover the difference. Despite returning to work, Caroline feels held back by maternity leave and limited paternity leave, saying, “My pay is behind because I have taken two maternity leaves and so I am behind on promotions and pay.”

Eligible parents of three and four-year-olds in Wales can claim up to 30 hours of free childcare weekly, but both parents’ gross income must be £100,000 or less. The Flying Start programme offers 12.5 hours of free childcare for two-year-olds in eligible postcodes, with plans to expand this provision.

Purnima Tanuku, Chief Executive of NDNA Cymru, explained that childcare costs have risen because funding rates for the Childcare Offer hadn’t increased since 2022, forcing nurseries to raise fees to cover losses.
Tanuku welcomed the Welsh Government’s steps to increase funding to £6.40 per hour and provide permanent relief from business rates, but warned that providers still face rising costs, with nurseries increasing fees by an average of 12%, below the 15% rise in staffing bills.

She stressed the importance of local authorities working with childcare providers as the Flying Start offer expands to ensure sufficient places. Natasha Baker, who left her legal career to open a Welsh language nursery in Newport, described the childcare system as overly complicated and flawed.

Baker highlighted the high employment costs nurseries face due to strict staff-to-child ratios, which have become more expensive with rising National Insurance and minimum wage rates. She questioned the fairness of offering free childcare to parents earning up to £100,000, stating, “In my opinion we have choice not to take government funded childcare.” Her nursery now cares for 120 children, illustrating the ongoing challenges faced by providers balancing quality care with financial viability.