Childcare putting Welsh parents in debt, Senedd told

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A woman helping children cut paperImage source, Getty Images

Parents are going into debt - especially single mothers - because of the high cost of childcare, Senedd members have been told.

Funding for a childcare scheme has been cut by the Welsh government in an attempt to direct more money to frontline public services.

The government says demand for care had been lower than expected.

But the Women's Equality Network (WEN) charity said it was the "wrong reaction".

The gender-equality group said the government should instead make sure families can access the service.

In October, Finance Minister Rebecca Evans revealed cuts mid-way through the financial year so more funding could be switched to the NHS and rail operator Transport for Wales.

It included a cut of £16.1m to the childcare offer which provides 30-hours of care a week for three and four-year-olds.

The government said the money was available after updated forecasts of demand from parents.

Another £11.2m will be taken out of the policy next year, again based on the latest forecasts, with the government saying it will have "no anticipated direct impact to delivery".

But Jessica Laimann of WEN said the reduced demand was "most likely a mismatch between what families need and what is actually available".

"Cutting the budget is certainly the wrong reaction to that," she told the Senedd's finance committee.

Research by Oxfam Cymru, external last year showed a "critical need for affordable childcare in Wales", she said.

She added: "High childcare costs are compounding the financial pressures for families, pushing parents - especially single mothers - into debt and poverty."

She also said women were more likely to work in and rely on care services.

"So if we are still seeing cuts to these provisions women are likely to bear the brunt of that."

A Welsh government spokesperson said: "The childcare offer is a demand-led programme and support is made available for all eligible parents that apply.

"We have prioritised communications across Wales to increase awareness and encourage take-up among eligible parents, and we will continue with this in 2024-25."