The government is offering more money to nurseries and childcare providers after an investigation revealed a chronic shortage was causing problems for parents.

An investigation by Tynwald’s the social affairs policy review committee heard there was a serious lack of childcare and nursery provision, particularly for children aged up to two. Last year the committee heard there were only 12 childcare centres that catered for children aged two and under, offering a total of 126 places.

A lack of childcare facilities risked stunting economic growth, the government was warned.

Tynwald later called upon the government to adopt a ’strategic approach’ to address the ’social and economic issues’, highlighted by the committee, due to a lack of childcare places.

Now the Department for Enterprise says changes to two of its business support schemes offer more support.

The Financial Assistance Scheme has been updated to include support for nursery and child day care centres, while the Micro Business Grant Scheme has been revised to offer an enhanced rate of financial support - up to £15,000 - for childcare providers and nurseries.

Enterprise Minister Laurence Skelly said: ’We listened to the feedback from the social affairs policy review committee, which highlighted the shortage of childcare and nursery facilities.

’We aim to promote every opportunity for parents to return to work and believe the additional support for businesses operating or looking to operate in this area will provide services which meet the needs of our community.’

It was ’essential’ to spot the gaps in what the government offered to meet the needs of business and society, he said.

The Financial Assistance Scheme (FAS) provides grants for new start-up businesses, local businesses looking to expand, and businesses relocating to the Isle of Man.

Capital and operating grants of up to 40% are available and an employee relocation incentive of up to £10,000.

The Micro Business Grant Scheme (MBGS) is designed to give start-ups and early stage small businesses the necessary training, financial support and mentoring to get their business off the ground.

It offers 20 hours of training, as well as financial assistance at a standard rate of up to £6,000, with an enhanced rate of up to £15,000 for ’substantially exporting businesses’ and childcare providers.

Further assistance, up to £10,000, is potentially available to support job creation.

Businesses must have been operating for under 18 months, be resident on the Isle of Man for tax purposes and have annual turnover between £5,000 - £100,000.

Neither of the schemes is retrospective.