Coronavirus: 'Substantial risk' nurseries will not survive pandemic

There is a "substantial risk" many nurseries will not survive the coronavirus outbreak, according to a body which represents the sector.

Cwlwm said most childcare providers did not qualify for Welsh Government support and the sector was being "ignored" during the pandemic.

But the Welsh Government said a range of financial help was available.

About 10% of childcare provision has remained open to care for key workers' children and vulnerable infants.

But Cwlwm, an umbrella body which represents about 4,000 childcare providers, estimates 90% 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 of up to £10,000 to businesses is not available to most nurseries, they say, because they need to be registered for VAT and most childcare businesses are exempt.

The body said it was also unclear if childcare providers who receive public money through the free childcare offer or Flying Start were able to get access to the UK government's furlough scheme, which offers grants to businesses to cover 80% of workers' salaries.

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.

"We're not looking for special treatment, we're looking for fairness for the childcare sector," she said.

"We feel that the childcare sector is being ignored and that no-one seemingly cares."

"The sector will be essential both in the short, medium and long term for economic regeneration," she added.

"If the sector is not supported now, many settings will struggle to re-open".

But the Welsh Government said while the Economic Resilience Fund would help a "significant number of businesses", "it is clear that it will not reach all".

The £500m scheme is currently open to businesses who are VAT registered or exempt from VAT with turnover greater than £85,000.

"All childcare providers who currently receive 100% Small Business Rates Relief will receive a £10,000 grant to be issued by local authorities as soon as possible," a spokeswoman said.

The Welsh Government said current UK government guidance on who could access the Job Retention scheme, so businesses can furlough staff, was "unclear" and it was working on providing clarity for those who receive public funding.

"The deputy minister for health and social services is due to meet Cwlwm on Monday to discuss their concerns," she added.