Two councils in Scotland still to decide on childcare funding rates
Despite extra funding and guidance on paying a sustainable rate for funded early learning and childcare (ELC) being available from the Scottish Government from April, two councils have still not set out what partner providers will be paid in 2024/25.
National Day Nurseries Association (NDNA) Scotland has followed up an earlier investigation in May which found that 12 councils still had not set out what funding rates they would be paying six weeks into the financial year. Ten of the original councils have now confirmed that providers will get a new rate.
However, Inverclyde and Midlothian councils have said they haven’t yet set the amount they will pay per hour of funded ELC delivered by partner providers, despite the fact that the new academic year has started.
Earlier this year, with the Real Living Wage increasing by 10% to £12 per hour from April, the Scottish Government committed £16 million to ensure the legal requirement to pay this to ELC staff was funded.
Purnima Tanuku OBE, Chief Executive of National Day Nurseries Association (NDNA) Scotland, said: “Nurseries across Scotland have been legally bound to pay the increased Real Living Wage for five months now. The fact that some councils still haven’t decided how much they will pay providers for the places they are delivering is shocking.
“Two other councils have now increased their rates by the 7.6% required which will be welcomed by providers in those areas. However, more needs to be done to ensure the rates being set are actually sustainable for providers.
“We will be hearing about the new Real Living Wage rate later in the autumn, so it is important that councils and the Scottish Government work out how funding can keep pace with the rising costs providers are facing.”
NDNA Scotland asked local authorities in Scotland how their increases would translate into sustainable hourly rates for funded ELC, which are paid to partner providers who deliver those places.
All of the 32 councils have now responded, with 21 local authorities confirming that they will be making the minimum uplift of 7.6%. Edinburgh and Moray had previously set out lower increases of 4.8% and 4.2% respectively but have now increased these to 7.6%.
Only three councils, Highland, Na H-Eileanan Siar and Stirling, have announced increases that match the 10% rise in the Real Living Wage.
- Scotland
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