Welsh Government has now published its Final Budget, which includes an additional £30million on top of the £20million included in the Draft Budget for childcare.

This will provide a further uplift in the hourly rate to £6.40 to support childcare providers with cost pressures.

It will also ensure funding for the Flying Start programme to deliver childcare to two-year-olds across Wales.  This is in addition to the recent announcement about moving to annual hourly rate reviews from 2025-26 and the decision to make 100% rates relief for all childcare premises permanent.

In publishing this Final Budget, the Welsh Government has worked closely with Jane Dodds MS, the leader of the Welsh Liberal Democrats, to agree more than £100m of additional investment, in areas of shared priorities.

Read more here Final Budget 2025-2026: explanatory note