Childcare Association warns doubling of free nursery places "at risk"

A flagship Scottish Government policy to almost double paid-for nursery places for three and four-year-olds is "at risk'', a childcare association has warned.

The National Day Nurseries Association (NDNA) Scotland's annual survey found confidence among private nursery providers has hit an "all-time low'', with the number likely to offer the expanded hours having fallen from 51% last year to just 30%.

Ministers have pledged to increase paid-for nursery places from the current 600 hours to 1,140 for three and four-year-olds, and eligible two-year-olds, by August 2020, equivalent to about 30 hours a week in term time.

A deal struck with council umbrella body Cosla in April means £990 million will be spent on day-to-day funding for the scheme by 2021 - £150 million more than the government's previous estimate.

But the NDNA said more funding is needed now, warning in its report that the requirement to pay staff the real living wage will "cripple'' nurseries, without extra cash.

More than three quarters of those surveyed (78%) said funding for three and four-year-olds does not cover their costs, with the average shortfall at #1.98 per hour, equivalent to #1,188 a year per child.

Respondents expecting to make a loss rose from 12% last year to 16%, and some fear closure.

Just under half (46%) said they would be unlikely or very unlikely to provide 30 hours' cover compared with 24% last year, with only 7% of respondents able to meet the full 1,140 hours on current funding rates.

The NDNA has made a series of recommendations, including increasing funding rates for the current 600 hours and that funding for the doubled provision rises in line with projected costs.

The report states "more support'' is needed, adding: If we do not make plans and take decisions now, the 1,140 hours scheme is at risk.''

A Scottish Government spokesman said: "Since this survey was carried out, the Scottish Government has agreed a landmark near-#1 billion funding package with Cosla which provides for local authorities to offer fair and sustainable funding rates to private and third sector nurseries, which will significantly increase rates across Scotland and enable all childcare workers delivering the funded entitlement to be paid the Scottish living wage.''

He said the Government is working hard with Cosla and councils to promote positive and effective partnerships with all childcare providers.