Expansion of Early Learning and Childcare – Reinstatement of 1140 statutory duty - Business and Regulatory Impact Assessment (BRIA)
This Business and Regulatory Impact Assessment (BRIA) was carried out to update the BRIA undertaken in relation to the 1140 expansion policy in 2019, and to look at the business and regulatory impacts of reintroducing this policy from August 2021.
11. Summary and recommendation
11.1 Based on analysis of the associated costs and benefits, Option 1 (the reinstatement of the statutory duty to deliver 1140 hours to be set for August 2021) is the preferred option.
Option 1: The reinstatement of the statutory duty to deliver 1140 hours to be set for August 2021
Total benefit per annum: - economic, environmental, social
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 (roughly £2,100 compared to the current statutory entitlement of 600 hours)
- 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.
Total cost per annum: - economic, environmental, social - policy and administrative
- Recurring additional revenue cost of £567 million per annum from 2021-22, in addition to costs incurred to provide 600 hours of funded childcare.
- £476 million capital cost for the four financial years from 2017-18 to 2020-21 inclusive.
- No recurring annual capital cost.
Option 2: Statutory duty to deliver 1140 hours reintroduced at a later date than August 2021 (and will remain at 600 hours in August 2021)
Total benefit per annum: - economic, environmental, social
- If some local authorities still choose to roll out the expanded entitlement then some, or all, of the benefits described in Option 1 could be witnessed to some degree.
Total cost per annum: - economic, environmental, social - policy and administrative
- 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.
Signed: Maree Todd
Date: 20 January 2021
Minister's name: Maree Todd
Minister's title: Minister for Children and Young People
Scottish Government Contact point: ELCPartnershipForum@gov.scot
Contact
Email: ELCPartnershipForum@gov.scot
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