Chamber and committees

Funded early learning and childcare (ELC) is delivered across the public, private, third and childminding sectors. Since August 2021, all local authority areas have put in place an expanded offer of up to 1140 hours of funded ELC for all eligible 2, 3 and 4 year olds.

Funded ELC is delivered in a ‘provider neutral’ way, which means that families can access high quality funded ELC with the provider of their choice – in the public, private, third sector or a childminder – if that provider meets the criteria set out in our National Standard, has a space available, and is in contract with their local authority to deliver the funded hours.

Sustainable and thriving public, private, third and childminding sectors are essential if we are to realise the full benefits of the ELC expansion. The landmark multi-year funding agreement reached by Scottish Government and COSLA in April 2018 to fully fund the expansion to 1140 hours includes funding for the payment of sustainable rates that reflect the cost of delivery and enable payment of the real Living Wage to childcare workers delivering the funded entitlement. In addition, the Scottish Government announced on 4 December 2020 that qualifying day nurseries will continue to benefit from 100% relief on non-domestic rates until at least June 2023.

The Scottish Government has also taken a range of actions to support providers in the private, third, and childminding sectors during the pandemic, including making available more than £22 million of dedicated support.

On 31 August the Scottish Government published the Financial Sustainability Health Check of the Childcare Sector in Scotland . The Health Check collected evidence on the sustainability of the childcare sector, in particular in light of the impacts of COVID-19. It set out a range of actions to improve sector sustainability, including:

• Developing a programme of targeted business, financial management, marketing and human resources support for all types of childcare services.
• Developing a five year workforce strategy to support recruitment and retention in the sector and introducing a Childcare Taster Programme as part of the National Transitions Training Fund in 2021-22.
• Strengthening the process for local authorities to set sustainable rates for providers in the private, third and childminding sectors to deliver funded ELC; and
• Reviewing the administrative requirements on providers, particularly for private, third and childminding sector services.

Each of these actions will help us to support the sector to recover from Covid and get onto a sustainable footing so that they can continue playing a vital role in delivering our ambitious vision for expanding high quality early learning and childcare.