More than 80 per cent of children aged 3 to 7 are making good progress in learning Welsh as a first language in Welsh-medium schools.
A report out today by education watchdog Estyn also reports standards in pupils' language, literacy and communication skills are similar to those in English-medium schools, and are in line with the expected level at that age.
The new report, Welsh in the Foundation Phase, considers standards in developing language in Welsh-medium schools taking into account whether pupils come from a Welsh-speaking home or not.
It also considers the balance between formal language development and informal activities which is a core part of the Foundation Phase approach to teaching and learning.
A rally is being held at City Hall in Cardiff today as part of a campaign calling on Cardiff Council to honour their pledge to establish a Welsh-medium school in Grangetown.
Campaigners say access to Welsh-medium education is especially difficult for many in the Butetown, Riverside and Grangetown communities, with some children having to face round trips of up to 8 miles a day with no financial assistance for transport.
Parents in Merthyr Tydfil are protesting over the local council's decision to introduce compulsory bus passes for school children. Instead of paying 60 pence per day, parents must now pay £39.50 per term.
Many parents say they cannot afford the payout and have no choice but to allow their children to walk to school.
In a statement, Merthyr Tydfil County Borough Council said the bus pass scheme implemented was "a way to improve the safety of pupils."
Previously, there was "no way of being able to clearly identify potential pupils, on any of our contracted buses, in the event of an incident", it said.