Nursery World - Making ends meet part 3: How nurseries are diversifying their business to stay afloat

In part three of our series, we look at how providers in Wales delivering the country’s various funded places are diversifying what they offer to remain sustainable. By Leah Jones

Despite the rising cost of living and increases to National Living and Minimum Wage, funding rates for the Childcare Offer in Wales have been stagnant since 2022.

According to National Day Nurseries Association (NDNA) Cymru, 91 per cent of childcare providers expect to make a loss or only just break even as a result.

Under the Childcare Offer for Wales, three- to four-year-old children of eligible working parents can receive up to 30 hours of funded care a week, for up to 48 weeks of the year.

Providers receive just £5 per hour per child to deliver the offer, although the majority of them think a rate of between £6 and £8 is more appropriate, according to Early Years Wales.

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