Last reviewed 10 September 2021

The Welsh government has announced that registered childcare premises will benefit from 100% non-domestic rates relief for an additional three years.

The extension of the business rates relief until 31 March 2025 will provide £9.7m of additional support for early years settings, according to the Welsh government. It is intended that it will help childcare providers who are facing financial difficulties as a result of the pandemic and secure the level of provision that children and parents need and rely on.

The Small Business Rates Relief scheme was enhanced in April 2019 to provide 100% relief to all registered childcare premises in Wales for a three-year period. Designed to help the sector deliver the childcare offer of 30 hours of early education and childcare, the scheme helped many private nurseries and day care providers overcome some of the financial challenges already facing the sector.

Julie Morgan, Deputy Minister for Social Services, said:

“We are committed to investing in Wales’ childcare sector. It is vital we recognise the essential service childcare settings provide to families, offering positive and caring environments for our children and helping parents to access employment, education or training.”

“The pandemic has had a devastating impact on businesses across Wales and childcare settings have been severely impacted. The pandemic has created new, and exacerbated existing challenges for childcare settings. The extension of the rates relief will help registered childcare premises continue the crucial work they do and help to ensure they remain viable businesses.”

The Nursery Rates Relief Scheme in Scotland, which was initially due to end on 31 March 2021, has also been extended until at least June 2023. The early years sector is now urging the English Government to follow suit and use the upcoming Spending Review to announce the extension of business rate relief rates for all eligible early years settings or to grant a permanent exemption for the sector.