Government Funded Childcare - Dynamic Market

Cardiff Council is establishing a Dynamic Market arrangement to support the delivery of Government-funded childcare across the city. This notice is intended to inform the market of the Council’s proposed approach and to support early provider awareness and engagement ahead of any formal procurement process.

The initial focus of the arrangement will be to support completion of Welsh Government’s commitment to provide 12.5 hours of funded Flying Start childcare for two- to three-year-olds, ensuring that sufficient childcare capacity is available across Cardiff.

The Dynamic Market will provide a flexible, transparent and scalable procurement mechanism through which childcare providers, including childminders, who are registered with Care Inspectorate Wales (CIW) may apply to deliver funded childcare places, subject to meeting the Council’s agreed quality, safeguarding, operational and contractual requirements as well as the Welsh Governments Guidance for Childcare (This is currently the “Flying Start Childcare Guidance” but is likely to change in the near future as the Governments programme for childcare develops).

Subject to confirmed Welsh Government policy direction, funding allocations and any required approvals, the arrangement may also provide a mechanism to support the phased implementation of future funded childcare commitments, including increased provision for two-year-olds, extended funded childcare provision for three- and four-year-olds, and potential future childcare provision for children aged nine months to two years.

The Dynamic Market is intended to operate for an initial period of 4 years, with an option to extend for a further 2 years and an additional further 2 years (8 years in total), subject to Council requirements, performance, continued funding and any necessary approvals. The Dynamic Market is intended to remain open to new eligible providers throughout its lifetime, enabling providers to apply to join as capacity, demand and local sufficiency requirements change. This approach is intended to support parental choice, improve access to funded childcare in communities across Cardiff, strengthen childcare market capacity, including Welsh-medium provision, and provide the Council with a flexible commissioning model capable of responding to future policy and funding developments.

The indicative maximum annual value of the Dynamic Market would be £15,276,300 at the current rate of £8 per child per hour. These figures represent a potential maximum and will vary depending on population changes, parental take-up, and future Welsh Government funding allocations. The value may also increase as wider childcare commitments are introduced, including additional hours, weeks, and eligibility for other age groups.