Part of the debate – in the Senedd at 4:23 pm on 22 September 2020.
Thank you for the statement, Minister. There has been understandable concern from parents, so I welcome this today. I too would like to offer thanks from the official opposition to all our nursery and child carers, who not only do a fantastic job not only just caring for our children, but helping to nurture them and helping them grow as individuals. I welcome the fact that the system is now being reinstated, having been suspended during lockdown, for working parents of three and four-year-olds, because it's a vital lifeline for families, enabling the parents to actually earn a living.
But many nurseries have been operating at a loss due to the fall in the uptake that you've just referred to, presumably due to the ongoing uncertainty and some workers still being on furlough. What support can the Welsh Government offer to nurseries that are facing serious financial hardship due to their enforced closure, fewer children attending and increased costs to deal with COVID regulations? And what consideration has been given to setting up a transformation fund to be able to support the sector until occupancy levels pick up further than you've said, and to really review the hourly rate to reflect the additional costs that they've had to incur, as called for by the National Day Nurseries Association?
The organisation Cwlwm, which you referred to, has said that most childcare providers did not qualify for the Welsh Government support, and the sector was being ignored during the pandemic. Cwlwm, an umbrella body that represents 4,000 childcare providers, estimates 90 per cent of nurseries, day care centres, clubs and childminding services have closed in the last month, but still had to pay bills and rent. A Welsh Government scheme offering grants up to £10,000 to businesses is still not available to most nurseries, they say, because they need to be registered for value added tax, and most childcare businesses are exempt. Cwlwm chairwoman, Dr Gwenllian Lansdown Davies, said clarity was needed so providers could pay their staff, and the VAT exemption needed to be lifted or childcare businesses would not survive the pandemic. I'd love to hear what you could say on that, Minister, please.
I hear what you're saying about not requiring childcare providers to close during the pandemic, but the reality is that many did close because numbers simply weren't viable. And in terms of our economic recovery, we need childcare settings to survive and to flourish. Indeed, following the introduction of the childcare offer, Welsh Government has been working to increase the number of childcare places by working with local authorities to create additional capacity. What assessment has the Minister made of whether these plans need revising because of the pandemic, please? Thank you.