Scottish Budget – funding to continue childcare support for priority families
Scotland’s Finance Secretary Shona Robison reported on the Budget in Holyrood this week.
For early years, the main features of the Budget were:
- funding to continue development of flexible, affordable childcare for priority families in Early Adopter Communities, giving families the opportunity to seek employment and improve their living standards
- delivering commitment to ensure early learning and childcare and children’s social care staff in the private and voluntary sector are paid the real living wage
- Free Breakfast Clubs – Bright Start breakfasts in schools
- Lifting the two-child benefit cap
Purnima Tanuku OBE, Chief Executive of National Day Nurseries Association (NDNA) Scotland said: “While it’s vital that all children especially those from disadvantaged backgrounds have access to high quality early learning and childcare, the whole sector is extremely worried about the hikes in employer costs from April.
“Funding for partner providers must be uplifted to factor in the increased National Insurance Contributions and higher Real Living Wage. We have calculated that this will push providers’ staffing costs up by at least 9%, about an additional £2,200 per member of staff. This increase must reach providers by April so they can afford these pay rises. This year many local authorities waited until November before passing on this additional funding which meant nurseries had cash flow issues impacting their businesses.
“While it’s welcome that the Scottish Government aims to support more priority families, this must not be at the expense of the private and voluntary nurseries that offer flexibility and all-year-round care. If the investment is not sufficient, this additional cost will either be passed onto parents in the form of higher fees or nurseries will have to reduce their places or be forced to close for good.”
The Finance Secretary also announced that, recognising the importance of providing stability and certainty to taxpayers and businesses across Scotland, there will not be any new bands or increases to the rates of Scottish Income Tax during this Parliament. They will maintain their commitment that over half of Scottish taxpayers will pay less Income Tax than they do in the rest of the UK, uprate the Starter and Basic rate bands by at least inflation.
- England
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