Financial sustainability health check
Financial sustainability health check of the childcare sector
The period since March 2020 and the onset of the impacts of COVID-19 has been challenging for the childcare sector, as it has been for many other sectors of the economy.
We published the financial sustainability health check in August 2021. The health check collected evidence on the sustainability of the childcare sector in Scotland, in particular in light of the impacts of COVID-19. The exercise have also captured information on the impact of the range of financial support that has been made available.
The health check was informed by evidence and analysis from:
- detailed surveys of childcare providers
- in-depth case study interviews with a range of providers
- discussions with childcare provider representative bodies
- analysis of trends in Care Inspectorate registration data
The findings were published on 31 August 2021 and set out in Financial sustainability health check of the childcare sector in Scotland.
Alongside this a supporting analysis and evidence paper has also been published.
We are working with the sector and delivery partners to progress the series of actions set out in the health check to enable recovery and to support the long-term sustainability of the sector, including:
- funding an extended pilot programme of targeted business gateway support to help childcare providers to adapt to current economic conditions and strengthen their sustainability. More information on this programme is available below
- working with COSLA and local authorities to strengthen the process for local authorities to set sustainable rates for providers delivering funded early learning and childcare
We continue to monitor the sustainability of the childcare sector and will an update of the financial sustainability health check will be undertaken in early 2023.
Programme of targeted support for the childcare sector
The extended programme of support is available to all types of registered childcare providers in Scotland, including self-employed childminders. It will allow childcare providers to access targeted business, financial management, marketing and human resources (HR) support if they need to refresh their knowledge, upskill, or access specialist advice.
This project will be delivered through Business Gateway from December 2022 until 31 March 2023.
Business Gateway will run virtual courses for the sector on specific subjects chaired by experts. They will also provide free one-to-one sessions with their advisers to find out more about any business concerns you might have, followed by aftercare sessions where required.
More information about this programme is available on Business Gateway website's childcare and childminding business support section.
Childcare Sector Representation and Sustainability Fund
In August 2022, the Childcare Sector Representation and Sustainability Fund provided the opportunity for childcare sector representative organisations in Scotland, who met the eligibility criteria, to apply for funding for the two-year period 2023-24 to 2024-25 to support the delivery of their representative functions and to enable them to strengthen their long-term sustainability.
This followed the commitment in the health check to review how the impact of the core funding that childcare sector representative organisations currently receive can be maximised to support outcomes for children, childcare services, and the long-term sustainability of the representative bodies.