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Early years providers in Wales given permanent business rates relief from Welsh government

By Shannon Pite

Registered early years providers in Wales will no longer have to pay business rates, the Welsh government has confirmed.

While registered early years premises in Wales have had 100% business rates relief since 2019 on a temporary basis, the full 100% rates relief has now been made permanent by the Welsh Government.

The move is estimated to save the Welsh early years sector 拢3.4 million a year.

Commenting, Dawn Bowden, Welsh minister for Children and Social Care said:

鈥淐hildcare settings provide an essential service in Wales, offering nurturing environments for our children and helping parents to access employment, education or training. 

鈥淏ut we know that the sector is under significant pressure and in need of ongoing support to meet their costs.

鈥淢aking business rates relief for registered childcare premises permanent will be a huge boost to the sector, providing stability and helping providers reinvest savings back into their business to continue delivering high quality and affordable childcare.

鈥淚t is the right thing to do for our children, parents and providers now and for the future.鈥

The Early Years Alliance continues to call on the government to exempt early years settings based in England from business rates, arguing in its 2024 manifesto for government that 鈥渞ising business rates now present a significant 鈥 and growing 鈥 financial burden on many settings around the country鈥 though noting that 鈥済iven many providers are not subject to business rates, this alone would not be sufficient to ensure the overall long-term sustainability of the sector as a whole鈥.