Question reference: S5W-25050
- Asked by: Alison Harris, MSP for Central Scotland, Scottish Conservative and Unionist Party
- Date lodged: 30 August 2019
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Current status: Answered by Maree Todd on 30 September 2019
Question
To ask the Scottish Government what action it is taking to ensure that private, voluntary and independent childcare providers, in partnership with local authorities to deliver funded childcare, receive their payments within a consistent and sustainable timeline.
Answer
Prompt and efficient payment to funded providers is an important aspect of the Funding Follows the Child approach which will be introduced in August 2020. As set out in Funding Follows the Child and the National Standard for Early Learning and Childcare Providers Operating Guidance it is vital that funded providers are paid promptly and efficiently by local authorities for the delivery of the funded hours, in order that their cash flows are healthy and to support overall business sustainability.
Many local authorities have already adopted prompt payment practices, and we will continue to encourage authorities to share these examples of good practice with others to ensure that all funded providers receive payments for delivering funded early learning and childcare in a prompt and efficient manner.
The Operating Guidance sets an expectation that local authorities should pay a funded provider within 30 days of the start of term and preferably sooner.
The timing of payment should be stipulated in the agreement between the local authority and the funded provider or in the general conditions governing terms of business.
We expect local authorities to work with their funded providers, where payment difficulties arise, to resolve matters timeously to ensure that any funded provider does not suffer unduly as a result of a late payment for delivery of the funded hours.