When the UK government decides to spend more or less on things such as health and education in England, the Barnett formula is used to decide how much money the other nations receive.
The £4bn expansion of childcare support in England, announced last year, meant £180m was made available to the Welsh government.
Finance Minister Rebecca Evans said at the time that the Welsh government was “already rolling out a phased expansion of our childcare offer to two-year-olds” as part of a co-operation agreement with Plaid Cymru.
The Welsh government has said it is focusing the rollout on the most disadvantaged communities in the first instance. It said there was an extra £50m to further expand provision in the 2025-26 budget.
Small business rate relief for registered childcare premises was made permanent in November 2024 after childcare providers warned they face higher costs, such as increased employers’ National Insurance contributions.
