Scottish MSPs raise concerns over 1140 hours and PVI sustainability
Last week’s Education and Skills Portfolio Questions in the Scottish Parliament brought forward the ongoing challenges faced by PVI nurseries, particularly around the sustainability of delivering the expanded 1,140 hours of funded ELC.
The government reiterated its commitment to the expansion and noted that research published in 2024 showed high uptake and signs of improvements in flexibility, accessibility and affordability for families. There is to be a full evaluation expected in early 2026.
However, for many nurseries, the picture looks very different.
NDNA research raises alarm on the Scottish funding gap
Liberal Democrat MSP Willie Rennie highlighted NDNA’s recent survey findings, stressing the stark financial pressures PVI nurseries continue to face. According to our research, 76% of PVI settings report that the funded rate they receive from local authorities does not cover the true cost of delivery, leaving the same proportion either breaking even or operating at a loss.
Rennie also mentioned the provider testimonies from Hannah Murison’s (National Operations Manager Scotland) MEd research, that conditions are deteriorating, staff are exhausted and the funding disparity between PVIs and local authority settings is widening. He pressed the Minister for when a “fair rate” would finally be delivered.
Government points to new cost data
Minister Natalie Don-Innes acknowledged the seriousness of the issue and said the government is awaiting results of a new national cost collection exercise led by the Diffley Partnership. This data, which NDNA members contributed to earlier this year, is expected to inform future rate setting.
While the Minister said she will consider next steps, she did not commit to a clear timeline. She also noted that the sector will see the data before it is presented more widely. In the past, previous cost collection exercises have not led to ‘sustainable rates’ that have met partner providers’ costs.
Still waiting for data publication
NDNA continues to call for transparency and urgency and are waiting for the publication of the cost data and for immediate action to follow. Providers cannot plan, invest or retain staff without funding that reflects the actual cost of delivering high-quality early years provision.
Impact on settings
For PVI nurseries who are the backbone of flexibility and choice for many families, the ongoing delay worsens long standing pressures, such as underfunding which threatens the viability of many settings. Workforce retention is becoming increasingly difficult, and parity with local authority settings remains far out of reach. The expansion of hours, while beneficial for parents, has not yet been matched by a sustainable deal for providers.
The parliament debate made it clear that the success of the 1,140-hour policy relies on a strong and sustainable mixed provider model. NDNA will continue to push for fair funding, timely publication of cost data and action plans to protect the future of our members and the families they help.
Listen to the full meeting here – https://www.parliament.scot/chamber-and-committees/official-report/search-what-was-said-in-parliament/meeting-of-parliament-04-12-2025?meeting=16724&iob=142908#orscontributions_M2826E443P779C2749953
- Scotland
- early education
- early years
- Early Years Scotland
- ELC
- funding
- NDNA
- NDNA Scotland
- Scotland
- Scottish Government
- Scottish Parliament
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