A GROUP of nursery owners all based in communities in Newport fear they may forced to cut funded spaces or close down altogether if funding doesn't improve.
Nurseries across the country are currently being forced to run at a loss as a result of what a number of owners in Newport are calling "a lack of funding" from the Welsh Government, combined with a rise in costings.
As many nurseries are staff-heavy, rising wages have meant more outgoings than income for many nurseries as funding has not increased to match.
Natasha Baker, who owns Wibli Wobli, Newport's only Welsh language nursery for children aged 0-5 years, says her nursery is struggling due to this mismatch.
She says that any losses felt by nurseries will be "markedly increased" by this budget, and says it shows the Government "don't value" childcare staff or early education.
She called for the Government to recognise the "highly qualified and dedicated professionals" within the industry, and said that if nurseries are forced to close down as a result of these costs, it would be the children who "will ultimately suffer".
Wibli Wobli has recently survived a devastating fire and Ms Baker says "the last thing" she wants to do is up her costs for parents, but fears she may be left "with little choice" if funding does not get better.
She added: "Nurseries in deprived areas or under government contracts do not even have the option of raising prices or stopping the funded places so I have no idea how they will cope."
Lisa Owen, of Chuckles Nursery in Bettws, shares much of the same concern, and says her main worry is the discrepancy between the funding rate and the costs she is facing.
She explained: "We're unable to afford these higher rates caused by the budget due to a lack of funding, and we're having to make up our own shortfall when our costs are wage heavy.
"I fear we may have to close Chuckles if something doesn't change."
The nurseries are unable to consider laying off staff due to childcare regulations.
Ellis Jenkins, of Sunnybank Nursery in Newport, said the gap between funding and costs "is criminal", and called for "immediate action" from the Welsh Government to save a sector that is "on its knees".
He said: "If things don’t drastically improve then providers hands will be forced; either increase fees even more for non-funded children to cover the gaps or stop providing childcare and early years education."
The Welsh Government were contacted for comment.
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