The Childcare Provider Grant for NPT

The Childcare Provider Grant is to provide financial assistance for CIW-registered childcare businesses which have experienced a reduction in net income as a result of the COVID-19 outbreak and have not been able to access grants from other UK or Welsh Government schemes.

The grant available per local authority area will be allocated on a ‘first come, first served’ basis, until the fund is fully committed, or 31st October 2020, whichever is earlier.

If you have not already done so, please follow the link below to the Business Wales website and use the Childcare Provider Grant Eligibility Checker to find out if you are eligible to apply for this grant.

If after using the Eligibility Checker your setting is eligible to apply for grant funding, please complete the application form below.

The purpose of the grant is to support registered childcare businesses with immediate cash flow support to help them with the economic consequences of the Covid-19 outbreak. The grant seeks to help those childcare businesses which have not been able to access other schemes and complements, other Covid-19 response measures to support businesses, social enterprises and charitable organisations in Wales.

A grant of up to £5,000 is available to CIW registered childcare businesses that have been affected by the Covid-19 outbreak. Your net income for April to June 2020 must have reduced compared to April-June 2019 due to COVID-19 and you must not have been able to access the various other grant schemes offered by UK and Welsh Governments. Or, alternatively, if you started trading on or after 2 April 2019, you may be eligible for a grant of up to £2,500 if you suffered a net loss for the period 1 April 2020 to 30 June 2020 and meet all of the other criteria listed below.

This grant can only be claimed by businesses that meet the following criteria:

  • The business provides childcare;
  • The business is registered with Care Inspectorate Wales (CIW);
  • Businesses must have been operating in Wales on or before 1st March 2020 and is continuing, or intends to continue operating in Wales;
  • Where the business is temporarily closed, the business must undertake to fully re-open on, or before 14th September 2020; or if based on school premises, as soon as the school allows
  • The business has experienced a reduction in net income due to coronavirus during the period 1st April to 30th June 2020 compared to the equivalent period in 2019; or if the business started trading on or after 2 April 2019 and suffered a net loss for the period 1 April 2020 to 30 June 2020;
  • Business has not received funding from and/or has not successfully applied for Economic Resilience Fund, Business Rate Grant, Self-Employment Income Support Scheme, Welsh Government Start Up Grant, or Third Sector Resilience Fund or, where relevant, the Mudiad Meithrin grant scheme which is funded from the Third Sector Resilience Fund.
  • Where applicable, Coronavirus Job Retention Scheme (CJRS) declarations are up to date and copies will be provided with the application;
  • Businesses need to confirm that without the grant support the viability of the enterprise will be under threat, and outline why;
  • Business must be, or must undertake to become within 12 months, registered as a company limited by guarantee, a private limited company, Community Interest Company or a Charitable Incorporated Organisation. (Cwlwm partners are able to discuss this with you if you are unsure). If you are a childminder and are registered with HMRC as a sole trader then you are exempt from this requirement;
  • If you employ staff, your business must aim to maintain employment for 12 months;
  • Only one application per businesses.
  • Proof of identification of applicant (one of the following)
    • Current UK or EEA photocard driving licence
    • Current signed passport
    • Original Birth certificate
  • Proof of business address (one of the following)
    • Council tax statement
    • Utility bill
    • Written correspondence confirming registration with HMRC
    • If based on school premises, suitable evidence or confirmation from the school
  • Evidence of active trading up to 1st March 2020 e.g. bank statements (Please ensure all business related income and expenditure is clearly highlighted on bank statements.)
  • Actual turnover for the 2019/20 tax year and anticipated turnover for the 2020/21 tax year.
  • Business bank statements, or statements for accounts used for business purposes to be provided for the periods 1 April to 30 June for 2019 and 2020

If any of the above documents are in an individual’s name rather than in the name of the business, please explain why.

You must include your supporting evidence with your application. Applications without supporting evidence will not be considered.

If any data is incomplete or incorrect or the evidence provided is insufficient we will not process the application and it will be rejected.

Scanned documents and photos are acceptable forms of evidence for this purpose.

Business A had income of £5,000 and expenses of £3,000 for April to June 2019. Its net income was therefore £2,000 for that period. During April to June 2020, due to coronavirus the business had income of £2,000 but incurred expenses of £3,000, giving a net loss of £1,000. The difference between the net income of £2,000 in 2019 and net loss of £1,000 in 2020 is £3,000.

To calculate the reduction in net income, we must take the change in net income and divide it by the original net income. In this example, the change in net income is £3,000 (the difference between net income in 2019 and net loss in 2020). The original net income in 2019 was £2,000.

£3,000 divided by £2,000 = 1.5. 1.5 multiplied by 100 gives a percentage of 150%.

The business has therefore experienced a reduction in net income of 150%.

As the reduction in net income was 150%, the business is entitled to a grant that equals the net reduction, up to a maximum of £5,000. In this case the grant would cover the net reduction of £3,000

 

Business B had income of £3,800 and expenses of £2,650 for April to June 2019. Its net income was therefore £1,150.  For April to June 2020, due to coronavirus, the business closed and only received Childcare Offer funding of £1,100 (including £500 actually received in July for June). Despite closing it still incurred expenses of £1,200. This meant for April to June 2020 the business had a net loss for April to June 2020 of £100.

The difference between the net income in 2019 and net loss in 2020 is £1,250. 

£1,250 divided by £1,150 = 1.08. 1.08 multiplied by 100 gives a percentage of 108%.

The business has therefore experienced a reduction in net income of 108%.

The business is entitled to the lower of the reduction in net income, or £5,000.

The business would therefore be eligible for a grant of £1,250, as the reduction in net income of £1,250 is less than £5,000.

 

Business C had income of £5,000 and expenses of £2,000 for April to June 2019. Its net income was therefore £3,000.  For April to June 2020 the business continued to trade but, due to coronavirus the business received income of £3,000 and incurred expenses of £1,400. This meant for April to June 2020 the business had a net income for April to June 2020 of £1,600.

The difference between the net income in 2019 and net loss in 2020 is £1,400. 

£1,400 divided by £3,000 = 0.47. 0.47 multiplied by 100 gives a percentage of 47%.

The business has therefore experienced a reduction in net income of 47%.

As the reduction in net income was 47%, the business is entitled to a grant that equals the net reduction, up to a maximum of £2,500. In this case the grant would cover the net reduction of £1,400.

 

Business D started trading on 1 September 2019. As the business started trading after 30 June 2019, it is eligible for a maximum grant of £2,500 to cover net losses incurred during the period 1 April to 30 June 2020. The grant will match the net loss experienced for this period, up to a maximum of £2,500.

For the period April to June 2020, the business experienced income of £12,000 and expenditure of £16,000. The business therefore made a net loss of £4,000 for April to June 2020. As the net loss experienced exceeds the maximum grant of £2,500, the business will receive a grant of £2,500.

 

For more information and guidance on how to complete the application form please download the Guidance Notes document below.

Please return the completed application form and all supporting evidence to eycu@npt.gov.uk

You must include your supporting evidence with your application. Applications without supporting evidence will not be considered.

Receipt of your application will be acknowledged within 10 working days.

We aim to process grant applications within 30 days of receipt.

Downloads
File type Document File size
docx Grant For Childcare Providers Application Form
64 KB
docx Guidance Notes
59 KB
pdf Childcare Provider Grant Privacy Notice
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