A Mid and West Wales MS has called on the Welsh Government to offer more support for the childcare sector or risk providers going out of business.

Jane Dodds, the leader of the Welsh Liberal Democrats, raised concerns over the potential impact that the 2024 National Living Wage uplift may have on childcare providers.

According to a recent survey from Early Years Wales, 84 per cent of childcare providers stated that the wage increase is unaffordable given the current funding rates and rising operational costs they face.

The same survey also found that 91 per cent of providers have been forced to consider or are set to increase fees for parents, while 94 per cent believe that the current funding rates are inadequate.

Ms Dodds said: “Unfortunately, like many industries here in Wales, our childcare sector is nearing its financial breaking point.”

“Devoid of any substantial government backing, there is a real risk that countless childcare providers could go under if immediate action isn’t taken.

“The impact of losing our childcare sector would be felt by all of us here in Wales, not just working families that are already struggling with balancing work and home responsibilities.”