Funding follows the child and the national standard for early learning and childcare providers: guidance on criteria 7 - business sustainability

Section 2 Principles For Reviewing Business Sustainability

19. Local authorities and funded providers working together meaningfully and in genuine partnership to deliver high quality and flexible ELC provision is fundamental to the success of ‘provider neutral’ Funding Follows the Child model.

20. This section outlines clear guidance on the principles which should be applied when reviewing business sustainability evidence from funded providers. The approach is built on partnership, and the principles which underpin business sustainability are, in particular, but not limited to:

• The evidence requested by the local authority regarding a private or third sector provider’s business sustainability will be reasonable in terms of the size, scope and risk associated with the settings the provider operates.
• The information submitted by providers will be robust and accurate.
• The evidence requested regarding business sustainability will reflect the nature and scope of the ELC arrangements, including but not limited to, the size, capacity and financial / organisational structure of the private or third sector provider applying.
• The evidence requested will be a suitable mixture of historical information and future business plans that give the local authority assurances that the setting has the knowledge and experience to remain sustainable.
• The local authority may request additional evidence should there be an identified risk of provider failure or in other events, such as, where concerns are raised with the local authority or where there are indications of a reduction in quality.
• All documentation collected will only be used for the purpose of assuring that the private or third sector provider meets the Business Sustainability criteria in the National Standard.