Thank you. As you say, we launched the £4 million childcare provider grant in the summer of 2020 in response to calls for direct financial help from the sector. Some of the settings were able to access direct financial support from the wider Welsh Government and the UK Government, including furlough, but there were a number that were telling us at the time that they were ineligible for that and that they were struggling, and the childcare provider grant was part of filling that gap for those who weren't able to access the wider ones. And, in fact, it's proved not to have had as much take-up as we would've wished, and we did feel that—. I mean, we did discuss it with one of the committees, actually, of the Senedd at the time, and I can remember very well the discussions when concerns were expressed about whether it was devised in the right way to reach people. And in fact, of the estimated 1,000 settings that were eligible for the childcare provider grant, successful applications were received from only 162 settings, with a total spend of £0.5 million and an average of £3,000 per setting. And that was obviously disappointing; we were very disappointed, as we would've liked more settings to have taken up the support. Those who had it thought it was useful, but that was a very disappointing outcome.
We haven't undertaken a formal independent evaluation of the grant, but we have collected feedback from local authorities who were administrating it, and from the umbrella bodies, and we've also got some feedback directly from the settings. So, comments included the complexity of the grant process and the requirement to evidence losses, which some settings found it difficult to do. Settings were also put off by the risk of having to repay if they had to close. Other settings were ineligible due to an unwillingness to become incorporated, because they had to become incorporated in order to access the grant, or because they temporarily had to de-register, because this was aimed at registered providers.
So, it didn't work out in the way that we wanted it to, and as I say, we haven't got an independent evaluation, but we are pretty sure that those are the reasons—too complicated, too difficult and too many barriers, basically, to accessing it. So, in response to that, we looked again at how best to support the sector, and over the last financial year, we directed £5.3 million in funding to the sector via the children and communities grant administered by local authorities, and this enables local authorities to assess the situation on the ground and provide small-scale sustainability grants according to the need in the local areas. So, through this mechanism, we have been able to provide funding to cover losses experienced by business as a result of reduced demand. Again, we haven't had formal evaluation of that funding, but feedback does suggest that it was of great benefit, and that's why we decided to direct a further £3.5 million in support via the children and communities grant in this financial year.