So, we began testing our offer in parts of Wales in 2017. We were often asked why the offer wasn't available everywhere, and why we were phasing the roll-out. I was particularly asked that in my constituency in Cardiff North, which was one of the last places to join the roll-out. The phased approach was important to ensure that the offer was properly tested and worked as we had intended. I’m delighted that it has been so successful, and I would like to pay tribute and express my heartfelt thanks to our partners, to the local authorities and the childcare providers who have been absolutely essential to the process, and have helped us to achieve so much. Because of the work we have done together, testing the administration and accessibility of the childcare offer, I'm delighted to tell Assembly Members that our offer has been available across the whole of Wales since April, over a year earlier than originally planned. 

At the end of July, we had almost 16,000 three and four-year-old children accessing Government-funded childcare, and 29 per cent of these were doing so through the medium of Welsh or bilingually. When we evaluated the offer at the end of the first year of implementation, the majority of parents reported a real increase in their disposable income because of the offer. A typical parent whose child is benefiting from 20 hours of childcare per week is getting the equivalent of an extra £90 per week in their pockets—money that they would not otherwise have had. A high percentage of parents also told us that the offer had given them more flexibility in the types of jobs they could do, or gave them more opportunities for training. And in the first year of roll-out, 60 per cent of all parents using the offer earned the equivalent or less than the median population earnings in Wales, benefiting low and middle-income families most. So, I am sure you will join me in paying tribute to both the 2,000 childcare providers currently delivering the offer, and to our local authorities, who have played an integral role in ensuring families can access this support.

It is also important to remember that the childcare sector is a significant employer in its own right. Across Wales, there are over 3,600 childcare settings employing around 17,000 people. Parents using childcare go on to contribute over £1.2 billion to the economy of Wales. We are taking steps to support the sector in a number of ways, for example through the 100 per cent rate relief, and through working with key stakeholders to professionalise the childcare workforce. The new suite of qualifications introduced earlier this month will offer better progression routes and wider career opportunities, and in the autumn we will be piloting a business support approach for the sector to support long-term growth.

Given our success to date, I am keen to look at how we can extend this vital support. So, as set out in the First Minister’s leadership manifesto, we are now considering the feasibility of expanding the offer to support parents in education and training, or on the point of returning to work. The offer is one of a suite of programmes aimed at supporting parents, many of which also support families with the costs of childcare. However, it has become clear that there are some gaps between these programmes. This was an area of particular interest to the Children, Young People and Education Committee when they considered the now Childcare Funding (Wales) Act 2019. I think it's important we look at this, and ensure we are doing all we can to support parents into work. I expect the review to report in early 2020.

I am also pleased to be able to announce that we will be working with local authorities across Wales to develop long-term delivery arrangements for the offer, building on some of the systems and services they already have in place. Local authorities have done an excellent job administering the offer, and are well placed to carry on with this important work, particularly given their local knowledge and the close relationships they have built over many years with providers and parents in their areas. Working with local authorities, I'm confident that we can deliver a national service to administer the offer—a national service that also adds real value at the local level. The WLGA welcome this ongoing role for local authorities and we will be working with them and others as we develop detailed proposals.

Members will be aware that we had planned to work with HMRC on a national approach to applications and eligibility checks. This would have seen us using their childcare services platform, which administers both the English 30-hour offer and tax-free childcare. A discovery impact assessment completed before the summer suggested the costs of developing and then running the service for five years could be in the region of £16 million. Given what was involved, these costs are not unreasonable, but they are higher than those outlined in the regulatory impact assessment for the Act. In part, this is because they include some costs not available at the time the RIA was completed. Also, given that we're reviewing the eligibility criteria for the offer, and in light of these costs, I determined it would be more sensible for us to suspend the work with HMRC at this time. But I would, however, like to thank them for the time they spent with us to date in considering all of our options. 

This change has led to a delay in bringing forward the secondary legislation under the Childcare Funding (Wales) Act. I want to make sure that legislation meets the needs of the service we are developing with local authorities, and I feel it's important to take the time needed to get it right. In the next months, we will continue to refine the offer based on our experience and further evidence from our ongoing evaluation programme. Acting Presiding Officer, this Government is committed to tackling the causes of poverty, and in particular in-work poverty, and our childcare offer is a key part of that commitment, helping working parents with those costs. I'm delighted at the success it has been so far.