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Everything you need to know about 1140 hours and funded childcare as a provider in Scotland
Funded early learning and childcare is ‘free’ to parents, but funded by the Scottish Government.
In Scotland all three and four-year-olds are entitled to 1140 hours of Early Learning and Childcare. Some two-year-olds from disadvantaged backgrounds receive 15 hours per week of entitlement. Some local authorities are running pilot schemes to expand funded childcare to all two-year-olds.
There are six early adopter communities part of this pilot: Dundee, Glasgow, Clackmannanshire, Inverclyde, Levenmouth (Fife) and North Isles and West Mainland (Shetland).
Key funding information for providers in Scotland
- NDNA Scotland has used the latest figures from local authorities under the Freedom of Information Act, to call for rates to increase to a level that will enable providers to meet the costs of delivering places
- See Government guidance for Scotland
- Parents in Scotland can access Tax-Free childcare
- Parents in Scotland can use Childcare Choices to determine what funding they may be eligible for.
Template letters for parents and MSPs about rising employment costs (from April 2025)
Our members have asked us for template letters to help explain the financial pressures facing early years providers—especially the increased employment costs coming from April 2025.
We have produced two adaptable templates:
- Template letter for parents (explains rising costs and pressures on settings)
- Template letter for MSPs (more effective when personalised with local detail)
Download them here:
FAQs about funded early years childcare in Scotland
NDNA’s investigation found that local authorities are withholding millions of pounds of early years funding, using it to offset other deficits or holding it in reserves. This directly affects the rates paid to providers delivering funded hours.
Audit Scotland identified that although the 1140-hours expansion increased provision, the childcare sector remains fragile. Rising costs, workforce challenges, and sustainability pressures particularly affect private, voluntary and independent (PVI) providers.
The Scottish Government’s sustainable rates review found that funding variation is expected across areas, but in many cases PVI providers are not being supported to the same level as local authority settings. Providers report that this makes it difficult to pay the Real Living Wage and retain staff.
Yes. Six early adopter communities are piloting extended funded ELC for all two‑year‑olds:
Dundee, Glasgow, Clackmannanshire, Inverclyde, Levenmouth (Fife), and North Isles/West Mainland (Shetland).