Funding follows the child and the national standard for early learning and childcare providers: guidance for setting sustainable rates from August 2020

This document provides guidance to enable local authorities to set a sustainable rate that is paid to funded providers in the private and third sectors.

Annex C: Glossary

Term Description
Accounts A term used to refer to financial statements, that is, the income statement and balance sheet, and often the cash flow statement.
Business Rates Business rates (also called non-domestic rates) are a tax on non-domestic properties to help pay for local council services.
COSLA COSLA, the Confederation Of Scottish Local Authorities,is the voice of Local Government in Scotland. They provide political leadership on national issues, and work with local authorities to improve local services and strengthen local democracy.
Early learning and childcare / ELC The relevant legislation defines early learning and childcare as: "a service consisting of education and care, of a kind which is suitable in the ordinary case for children who are under school age, regard being had to the importance of interactions and other experiences which support learning and development in a caring and nurturing setting."
Funded hours The hours of funded ELC provision for children which are funded through the local authority up to the statutory entitlement of 600 hours per year or (from August 2020) 1140 hours of funded ELC per year for all 3 and 4 year olds and eligible 2 year olds.
Funded Provider An ELC setting who meets the National Standard and offers the ELC funded entitlement to children.
Healthy snack and milk It is proposed that, under Scottish Government's newly devolved powers to deliver the Welfare Foods commitment, children will receive a healthy snack and milk as part of their ELC experience. This will equate to 1/3 of a pint of whole or semi-skimmed cow's milk and a piece of fruit or vegetable for every ELC session. This will be available to all ELC settings across Scotland, whether they are funded or non-funded.
Meal Every child attending a funded ELC session – which is any session that includes funded hours, regardless of whether they are mixed with 'paid for' hours – from 2020, will be provided with a free meal. This meal should be in line with Setting the Table and the Eatwell Guide and should ensure that individual cultural and dietary needs are met.
National Standard The Standard that all funded providers in Scotland will need to meet to offer the funded entitlement to children from August 2020. This is regardless of whether the funded hours are provided by a setting in the public, private or third sectors, including provision offered by childminders. It is aligned to the guiding principles for the expansion to 1140 hours: quality; flexibility; accessibility and affordability. It is also underpinned by the regulations in the Public Services Reform (Scotland) Act 2010 which applies to all care services across Scotland, including daycare of children and childminding settings.
Provider Any organisation offering ELC provision registered with the Care Inspectorate under daycare of children or childminding registrations.
Public Contract Subject to regulation 98(6) of the The Public Contracts (Scotland) Regulations 2015, means a contract for pecuniary interest concluded in writing between one or more economic operators and one or more contracting authorities and having as its object the execution of works, the supply of products or the provision of services.
Real Living Wage The rate of pay for staff that is calculated based on the cost of living. Employers who pay the Living Wage to their staff can apply for Living Wage Accreditation. The real Living Wage rate at December 2018 was £9.00 an hour. The rate is updated in the first week of November each year. The real Living Wage should not be confused with the National Minimum Wage (including the "national living wage" for those aged 25 and over) which is the legal minimum an employer must pay an employee and is set by the UK Government.
SCMA A charity and membership organisation that provides support, training and information to childminders in Scotland.
Scotland Excel The Centre of Procurement Expertise for the local government sector. Their services are designed to help local authorities meet the twin challenges of reducing budgets at a time of growing demand. Collaborative procurement increases efficiency and ensures money is saved to protect front line services. By working together through Scotland Excel, local authorities work to realise a host of social, economic and environmental benefits from their spend.
Service Model Working Group A group established in 2017 to bring together Scottish Government, COSLA and local authorities to work in partnership to develop Funding Follows the Child and the underpinning National Standard for ELC providers.
Setting Any service offering ELC provision registered with the Care Inspectorate under daycare of children or childminding registrations.
Sustainable rate The hourly rate that is paid to funded providers in the private and third sectors, and childminders, to deliver the funded entitlement. The rate will support delivery of a high quality ELC experience for all children; reflect the cost of delivery, including the delivery of national policy objectives; allow for investment in the setting – staff, resources and physical environment; and enable payment of the real Living Wage for those childcare workers delivering the funded entitlement.



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