Early learning and childcare expansion: BRIA

Business and Regulatory Impact Assessment (BRIA) relating to the expansion of early learning and childcare for 1140 hours per year for all 3 and 4 year olds, and eligible 2 year olds by August 2020.

12. Summary and recommendation

12.1 Based on analysis of the associated costs and benefits, expanding funded ELC entitlement to 1140 hours and modifying the maximum session length to 10 hours or less through secondary legislation is the preferred option.

Option Total benefit per annum: - economic, environmental, social Total cost per annum: - economic, environmental, social - policy and administrative
Option 1: Expand funded ELC entitlement to 1140 hours and modify the minimum framework for the delivery of funded ELC.

Summary of benefits:

  • Children - benefit in terms of social, emotional and educational outcomes, in particular those from disadvantaged backgrounds.
  • Families – choice of high quality settings; potential for parents or carers to increase hours of work, enter labour market, or undertake training/study; total estimated annual saving from 1140 hours of around £4,500 per child.
  • Providers – payment of a sustainable rate; provider neutral approach; and simplified (and less burdensome) process for becoming a funded provider.
  • Economic – new employment opportunities across all of Scotland; funding to support payment of the real Living Wage to childcare workers delivering the funded entitlement; substantial programme of infrastructure development; and potential increases in labour supply.
  • Recurring additional revenue cost of £567 million per annum from 2021-22.
  • £476 million capital cost for the four financial years from 2017-18 to 2020-21 inclusive.
  • No recurring annual capital cost.
Option 2: Do Nothing
  • No additional benefits identified.
  • No additional costs.

Declaration and publication

I have read the Business and Regulatory Impact Assessment and I am satisfied that (a) it represents a fair and reasonable view of the expected costs, benefits and impact of the policy, and (b) that the benefits justify the costs. I am satisfied that business impact has been assessed with the support of businesses in Scotland.


Date: 01/05/2019

Minister’s name: Maree Todd
Minister’s title: Minister for Children and Young People

Scottish Government Contact point:

Jessica Galway


Email: katrina.troake@gov.scot

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