Clybiau Plant Cymru Kids' Clubs, a Welsh Assembly-funded organisation that has helped develop more than 1,166 out-of-school clubs, was told last week that its funding for 2005-2006 would be cut by 35 per cent.
Although this is a temporary reprieve from the proposed 60 per cent decrease announced last December, the organisation has been told that funds for 2006-2007 will be cut by 60 per cent, and that it will need to make plans for a 'reduced level of support from the Assembly'.
Clybiau Plant Cymru Kids' Clubs will now receive 740,000 for 2005-2006, instead of the 1m annual grant that it had from 2001 to 2005. Two of its five regional offices, in Powys and Haverfordwest, are due to close.
Director Wendy Hawkins said, 'I am pleased to say the additional money will help us through 2005-2006, though we are being forced to use a proportion of our reserves, as well as make cuts to our original services.'
She predicted a 'decreased level of service' if no extra funding is found for 2006-2007.
Since it was set up in 2001, the organisation, which employs 61 staff, has helped support the provision of 26,000 childcare places - a market increase of 98 per cent across Wales.
Ms Hawkins said, 'We spend a lot of time helping clubs with sustainability.
We help them apply for funding and monitor grants and we have brought in Pounds 1.8m of funding in three years. We've also trained in excess of 5,000 club staff.
'The economic development of Wales is supported by out-of-school childcare.
Any club closures or lack of new development would impact on parents'
ability to continue to or return to work or training,' Ms Hawkins said.
'In a climate where childcare is at the forefront of the economic and political agenda, this just does not make sense.'
