Welsh Government announces a boost in childcare investment
Welsh Government accelerates funded childcare expansion
At a glance
• £55 million childcare investment confirmed
• Phased rollout supports pledge to deliver ‘’the most generous childcare offer in the UK’’
• Wrexham extends its offer to all two-year-olds
The Welsh Government has confirmed a £55 million investment in childcare as part of the First Supplementary Budget 2026–27, accelerating the rollout of funded childcare to more two-year-olds across Wales. The package includes £10 million in capital funding and will help deliver 12.5 hours of funded childcare per week to all two-year-olds, administered through local authorities.
The capital funding is intended for use in enhancing and expanding childcare settings; improving quality, capacity and accessibility across early years provision. It’s also hoped that it will support the long-term sustainability of providers, help manage rising demand, and bolster Welsh-medium childcare — feeding into the Government's wider ambition of reaching one million Welsh speakers by 2050.
The investment marks a step toward the Government's longer-term commitment to provide 20 hours of funded childcare per week for all children aged nine months to four years. Once fully rolled out, Ministers say the offer will be the most generous anywhere in the UK.
Wrexham expands offer
Wrexham has become the latest local authority to extend funded childcare to all two-year-olds in its area, joining Swansea, Merthyr Tydfil and Newport. According to the Government, the extra £55 million will fund 3,300 new childcare places for two-year-olds within Flying Start arrangements, with an Expert Steering Group advising on workforce planning, digital applications and improving access for families as the rollout continues.
Ministerial response
Deputy First Minister Sioned Williams, who holds responsibility for childcare, said the investment reflects an accelerated commitment to Welsh families.
"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," she said, adding that the Government would continue working with local authorities to extend the offer nationwide.
Sector response — and a note of caution
Claire Protheroe, Head of Contracts and Projects at Coram PACEY, welcomed the funding but cautioned that financial investment alone won't be enough. She pointed to a continuing decline in the number of registered childminders as a warning sign, stressing that the childcare and playwork sector needs proper support — not just funding announcements — if expansion is to succeed.
Political context
The funding forms part of Plaid Cymru's first supplementary budget, and comes after pressure since May's election to clarify how the party would fund its flagship childcare pledge. Because Plaid lacks a Senedd majority, the budget — and the funding it contains — depends on securing support from another party, likely Labour or the Conservatives, in a vote expected before mid-July. The Government has indicated the £55 million is drawn from underspend in the previous Labour budget, estimated at around £300 million.
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