MANY childcare providers across Wales will be forced to close due to the unsustainable funding model imposed by the Welsh government, the sector warned today.

Lisa Owen, who has run the Chuckles nursery in Newport for more than 25 years, called for fair funding for providers and parents as she penned a 2,000-name Senedd petition.

Under the Welsh government’s offer, working parents or those in eligible education or training can get help towards the cost of childcare for three and four-year-olds.

But providers receive a £6.40-an-hour rate, which Ms Owen warned does not cover the true cost of delivering childcare, with many businesses being forced to run at a loss.

“Childcare providers should not have to fight to survive,” she wrote.

“Families should not have to struggle to find care for their children. If we don’t act now, the future of childcare and early years education in Wales is at serious risk.”

In response to the petition, Minister for Children and Social Care Dawn Bowden said that the Welsh government would invest more than £150 million in childcare in 2025-26.

Pledging to review the amount providers receive each year, Ms Bowden pointed to April’s £1.40 uplift in the rate, which had been frozen at £5 for three years as inflation spiralled.

She also mentioned a 20 per cent uplift in allowable food costs and 100 per cent small business rates relief.

But Ms Owen was extremely disappointed by the minister’s response, saying she had to subsidise the childcare offer at the risk of losing her business.