Private nurseries in Scotland are currently dealing with a massive financial crisis, as underfunding from local authorities threatens current capabilities and their future.
Early childcare funding is provided to all children living in Scotland aged 3-5 years old by the Scottish Government. it provides funding for up to 1140 hours per year (up to 30 hours per week) for each child at no cost to parents.
The issue for nurseries, and in particular Private Nurseries is the amount given to them, after the local authorities deduct their costs is not enough to fully cover an hour of childcare, thus leaving the private nurseries to cover the shortfall themselves.
Since 2021, more than 100 nurseries’ have closed across Scotland for this reason.
Susan Boyce, Director of Bright Beginnings Nursery in the southside of Glasgow, expressed deep concern over the current funding crisis. “The current funding model is unsustainable,” she said.
“We’re committed to providing high-quality early learning, but the financial strain is becoming too for us to handle.”
However. In East Lothian, the council has capped the number of places it funds in private nurseries.
The difference in funding rates between private and public nurseries has also led to staffing challenges. Private nurseries often struggle to match the salaries offered by council-run settings, resulting in a significant loss of experienced staff. This not only affects the quality of care but also the stability that children need during their formative years.
In total, 23 local councils (around 79%) are paying private nurseries a smaller amount than they are delivering says the National Day Nurseries Association (NDNA).
The NDNA and other advocacy groups are currently urging the Scottish Government to address these issues by ensuring equal funding across all childcare providers. They emphasise that without immediate intervention, the sector risks further closures, reduced accessibility for families, and a decline in the quality of early childhood education.
Scottish Conservative spokeswoman for Children and Young People, Meghan Gallacher, said it was “unacceptable” that so many councils were in the dark over rates that they would be paying to childcare providers so close to the start of the new school year.
“The stark findings show how nurseries in Scotland are being left in limbo,” she said.
As Boyce aptly puts it, “Every child deserves the same access to a good quality of early learning, regardless of the type of nursery they attend. It’s crucial that funding reflects this principle.”
Below is a video explaining more about the topic.
