Hundreds more families across Wales are set to benefit from expanded access to funded childcare, following a £55 million investment announced by the Welsh Government as part of its First Supplementary Budget for 2026–27.
The funding package includes both revenue and capital investment aimed at widening access, improving quality, and ensuring long-term sustainability across the childcare sector.
At the heart of the announcement is the accelerated rollout of 12.5 hours of funded childcare per week for all two-year-olds, delivered through local authorities. Alongside this, £10 million in capital funding will be used to expand and enhance childcare settings, boosting capacity and improving accessibility for families.
The Welsh Government says the investment will help providers respond to rising demand while strengthening the sector’s resilience. A particular focus will also be placed on supporting Welsh-medium childcare provision, aligning with the long-term ambition of reaching one million Welsh speakers by 2050.
The policy direction marks another step towards a broader commitment to provide 20 hours of funded childcare per week for children aged nine months to four years. Once fully rolled out, ministers believe the offer will be among the most generous anywhere in the UK.
Progress on delivery is already visible. Wrexham has now joined Swansea, Merthyr Tydfil, and Newport in offering funded childcare to all two-year-olds in their areas, demonstrating how phased expansion is taking shape on the ground.
Local authorities will play a central role in delivering the extended entitlement, working in partnership with childcare providers to ensure capacity meets demand.
The Expansion of Childcare Expert Steering Group will guide the next phase of delivery, focusing on key challenges including workforce planning, digital application systems, and improving access for families who may face barriers to provision.
Deputy First Minister for Wales, with responsibility for childcare, Sioned Williams, emphasised both the social and economic importance of the funding:
“This investment shows we are accelerating our commitments to the families of Wales. 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.
“I'm particularly pleased that Wrexham is now expanding its childcare offer to all two-year-olds, and we will continue to work closely with local authorities across Wales to roll this out everywhere. This is spending with purpose, with every pound working harder for Wales.”
Beyond immediate cost relief for families, the funding is positioned as a long-term investment in early years development, economic participation, and community wellbeing.
For public sector leaders, the announcement signals continued policy emphasis on integrated early years services, with implications for workforce planning, infrastructure, and cross-sector collaboration.
As demand continues to rise, the success of the rollout will depend on the ability of councils and providers to scale sustainably while maintaining quality and accessibility – particularly in underserved and Welsh-speaking communities.
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