Funding Follows the Child and the National Standard for Early Learning and Childcare Providers: interim guidance - update

3. The National Standard for ELC Providers - Requirements from August 2022

41. The criteria in the National Standard focus on what children and their families should expect from their funded ELC experience, regardless of whether they access their funded entitlement in local authority, private, or third sector settings, or through a childminder. This is to ensure that, as part of Funding Follows the Child, which is 'provider neutral', there is consistency of high quality provision across all funded provider types. It is also underpinned by the regulations in the Public Services Reform (Scotland) Act 2010 which applies to all care services across Scotland, including day care of children and childminding settings, and the statutory functions for the delivery of funded ELC. Further information on these statutory functions is set out in the Early Learning and Childcare: Statutory Guidance – July 2021.

42. As the childcare sector continues to recover from the pandemic, it is recognised that there may be circumstances where flexibility on a small number of criteria and sub-criteria in the National Standard is still required from August 2022. However, it is expected that services offering funded ELC are able to demonstrate that they meet the majority of the National Standard from August 2022.

43. As contracting bodies, local authorities can adapt criteria where they cannot reasonably be met currently as a result of the pandemic, for example, allowing longer improvement or transition periods.

44. This section sets out for each of the criteria, and sub-criteria where applicable, the expectations regarding deliverability from August 2022. For some aspects of the National Standard there are variations for childminders to reflect the different nature of these providers.

45. This section should be read alongside Section 2 of Funding Follows the Child and the National Standard for Early Learning and Childcare Providers - Operating Guidance, which provides detailed information as to how to meet the National Standard criteria and sub-criteria.

Criteria / Sub-criteria / Requirements from August 2022

Criteria 1. Staffing, leadership and management

1.1: Care Inspectorate quality evaluations are 'good' or better on key questions that relate to quality of staff teams, and leadership (key questions 3 and 4). [All settings]

Requirements from August 2022:

• Expect the majority of funded providers to already be meeting this sub-criteria
• From June 2022 services will be inspected under the new Care Inspectorate Quality Framework. To reflect this, sub-criteria 1.1 will, for services inspected from 1 June 2022 onwards, reflect the evaluations for the following key questions in the new Framework:
  • How good is our staff team? (key question 3); and
  • How good is our leadership? (key question 4).
• Key question 3 reads across to the previous Quality of management and leadership quality theme; whilst key question 4 reads across to the previous Quality of staffing theme. Further information is provided in paragraphs 33 to 36 of this document.
• Deliverability for a small number of providers may be affected by delays to routine Care Inspectorate inspections as a result of the pandemic, in particular if they were on a service improvement period
• Where a setting is on a service improvement period and does not receive evaluations of 'good' or better at their next Care Inspectorate quality evaluation, the local authority may agree to extend the service improvement period until their next Care Inspectorate quality evaluation. This is in recognition that COVID-19 restrictions may have impacted on some settings' ability to access improvement support before the time of their next inspection
• Where a newly registered setting does not receive evaluations of 'good' or better at their first Care Inspectorate quality evaluation, the local authority may agree to place the setting in a service improvement period until their next Care Inspectorate quality evaluation. Again, this is in recognition that COVID-19 restrictions may have impacted on some settings' ability to access improvement support before the time of their next inspection
• Service improvement periods should only be provided or extended where both the local authority and the Care Inspectorate are comfortable that the service: is fit to continue; is engaging or willing to engage in quality improvement work and it is anticipated, with support, has the ability to improve and sustain improvement; and the local authority is satisfied that the setting meets all other aspects of the National Standard as set out in this Interim Guidance.
• Any settings on a service improvement period are expected to be drawing on the additional Care Inspectorate ELC Improvement Support Programme that has been made available for funded provider settings who do not currently meet the quality evaluations.

1.2: All support workers, practitioners and lead practitioners/managers working in the setting and included in the adult: child ratios must have either obtained the benchmark qualification for their role or, if they are still within their first 5 years of registering with the SSSC, have started to work towards this. [All settings excluding childminders]

1.2: From the implementation of the full roll-out of 1140 hours, childminders delivering the funded entitlement must have either obtained the benchmark qualification for ELC practitioners or, if they are still within their first 5 years of delivering the funded hours, be working towards achieving this qualification. [childminders]

Requirements from August 2022:

• All settings, with the exception of childminders, are expected to meet this sub-criteria.
• It is expected that where childminders have been unable to commence their benchmark qualification due to difficulties in accessing courses as a result of the pandemic, that extra flexibility is provided for this criteria. However, any childminders affected by this should be able to provide details of any courses applied for, or that they intend to apply for (if requested by the local authority)

1.3: Sustainable staffing structures are in place which meet the recommended adult: child ratios. [All settings excluding childminders]

1.3: The staffing structure in the setting is adequate to meet the recommended adult: child ratios. [childminders]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria.
• Settings should consider whether staffing contingency plans should be updated

1.4: All SSSC registered staff in the setting are achieving a minimum of 12 hours per year of Continuous Professional Learning. [All settings excluding childminders]

1.4: All childminders delivering the funded entitlement are achieving a minimum of 12 hours per year of Continuous Professional Learning. [childminders]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria
• The 12 hours a year of Continuous Professional Learning (CPL) is the minimum requirement, and where staff need or would like to undertake more hours of CPL then it is expected that funded providers will support this as far as possible, given the business needs of the setting
• Many CPL materials are easily accessible and should not be impacted by the pandemic

1.5: Staff new to delivering funded ELC within the last year are familiar with the content of the most up-to-date version of the national induction resource. [All settings excluding childminders]

1.5: All childminders newly registered to deliver ELC within the last year have undertaken appropriate induction. [childminders]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria
• Induction materials are easily accessible and should not be impacted by the pandemic
• Inductions for new staff should include guidance on the setting's approach to ensuring staff have the skills and knowledge to carry out their role
• There is a range of induction support for childminders including:
  • the Scottish Childminding Association (SCMA) offer induction training (see childminding.org/learn-with-scma)
  • Care and Learning Alliance's (CALA) childminding team deliver inductions (see calaelearning.co.uk/)
  • the Scottish Government has also developed a free and accessible guide, My Childminding Journey (see childmindingjourney.scot/)

Criteria 2. Development of children's cognitive skills, health and wellbeing

2.1: Care Inspectorate quality evaluations are 'good' or better on the key question relating to quality of care, play and learning (key question 1). [All settings]

Requirements from August 2022:

• Expect the majority of funded providers to already be meeting this sub-criteria
• From 1 June 2022 services will be inspected under the new Care Inspectorate Quality Framework. To reflect this, sub-criteria 2.1 will, for services inspected from 1 June 2022 onwards, reflect the evaluations for the following key question in the new Framework:
  • How good is our care, play and learning? (key question 1)
• Key question 1 reads across to the previous Quality of care and support quality theme. Further information is provided in paragraphs 33 to 36 of this document.
• Deliverability for a small number of providers may be affected by delays to routine Care Inspectorate inspections as a result of the pandemic, in particular if they were on a service improvement period
• Where a setting is on a service improvement period and does not receive evaluations of 'good' or better at their next Care Inspectorate quality evaluation, the local authority may agree to extend the service improvement period until their next Care Inspectorate quality evaluation
• Where a newly registered setting does not receive evaluations of 'good' or better at their first Care Inspectorate quality evaluation, the local authority may agree to place the setting in a service improvement period until their next Care Inspectorate quality evaluation. This is in recognition that the pandemic restrictions may have impacted on some settings' ability to access improvement support before the time of their next inspection.
• Service improvement periods should only be provided or extended where both the local authority and the Care Inspectorate are comfortable that the service: is fit to continue; is engaging or willing to engage in quality improvement work and it is anticipated, with support, has the ability to improve and sustain improvement; and the local authority is satisfied that the setting meets all other aspects of the National Standard as set out in this Interim Guidance.
• Any setting on a service improvement period is expected to be drawing on the additional Care Inspectorate ELC Improvement Support Programme that has been made available for funded provider settings who do not currently meet the quality evaluations

2.2: The setting must have a framework to support children's learning that is informed by national guidance and is appropriate to support individual children's development and learning focussed on active learning through play. [All settings]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria
• The pandemic has impacted some children more than others. Settings should seek to ensure that every child has the same opportunity to succeed, no matter their background or shared protected characteristics, with a particular focus on closing the poverty related gap in children's outcomes.

Criteria 3. Physical environment

3.1: Care Inspectorate quality evaluations of good or better on the key question relating to quality of the setting (key question 2). [All settings]

Requirements from August 2022:

• Expect the majority of funded providers to already be meeting this sub-criteria
• From 1 June 2022 services will be inspected under the new Care Inspectorate Quality Framework. To reflect this, sub-criteria 3.1 will, for services inspected from 1 June 2022 onwards, reflect the evaluations for the following key question in the new Framework:
  • How good is our setting? (key question 2)
• Key question 2 reads across to the previous Quality of environment quality theme. Further information is provided in paragraphs 33 to 36 of this document.
• Deliverability for a small number of providers may be affected by delays to routine Care Inspectorate inspections as a result of the pandemic, in particular if they were on a service improvement period
• Where a setting is on a service improvement period and does not receive evaluations of 'good' or better at their next Care Inspectorate quality evaluation, the local authority may agree to extend the service improvement period until their next Care Inspectorate quality evaluation
• Where a newly registered setting does not receive evaluations of 'good' or better at their first Care Inspectorate quality evaluation, the local authority may agree to place the setting in a service improvement period until their next Care Inspectorate quality evaluation. This is in recognition that the pandemic restrictions may have impacted on some settings' ability to access improvement support before the time of their next inspection
• Service improvement periods should only be provided or extended where both the local authority and the Care Inspectorate are comfortable that the service: is fit to continue; is engaging or willing to engage in quality improvement work and it is anticipated, with support, has the ability to improve and sustain improvement; and the local authority is satisfied that the setting meets all other aspects of the National Standard as set out in this Interim Guidance.
• Any settings on a service improvement period are expected to be drawing on the Care Inspectorate's additional improvement support programme that has been made available for funded provider settings who do not currently meet the quality evaluations

3.2: Children have daily access to outdoor play and they regularly experience outdoor play in a natural environment as part of their funded ELC offer. [All settings]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria
• Children's right to play outdoors every day has been enshrined in the national Health and Social Care Standards – As a child, I play outdoors every day and regularly explore a natural environment (HSCS 1.32)
• Reflecting learning from the pandemic, settings are encouraged to maximise their use of outdoor space including the use of outdoor public spaces such as parks and woodland where appropriate

Criteria 4. Self-evaluation and improvement

4.1: The setting uses relevant national self-evaluation frameworks to self-evaluate and systematically identify strengths and areas for improvement. [All settings]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria

4.2: The setting has a clear plan, developed in line with self-evaluation evidence, evidence from Education Scotland and Care Inspectorate scrutiny activities, research and national practice guidance, to continuously improve the quality of provision and outcomes for children and families. [All settings]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria

Criteria 5. Parent and carer engagement

5.1: There is open and regular communication with parents and carers about the work of the setting and families are meaningfully involved in influencing change. [All settings]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria

5.2: Parents and carers are supported to engage in their child's learning and development. [All settings]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria

Criteria 6. Inclusion

6.1: The setting must comply with the duties under the Equality Act 2010. [All settings]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria

6.2: The setting will be willing to provide appropriate support, including making any reasonable changes to the care and learning environment, to ensure that children's additional support needs do not provide a barrier to them accessing a full range of experiences and meets their individual needs. [All settings]

Requirements from August 2022:

• All settings are expected to meet this sub-criteria

Criteria 7. Business sustainability

Settings wishing to deliver the funded entitlement must be able to demonstrate that they are financially viable providers. [All settings]

Requirements from August 2022:

• Business sustainability is vital to assuring the local authority that the provider's setting can be sustained and offer continuity of care to children and families as part of their funded ELC entitlement
• The Financial Sustainability Health Check, published in August 2021, highlighted the impact of the pandemic on the financial position of settings. As a result, and given the prolonged period of the pandemic, some settings may continue to be unable to demonstrate the same levels of financial viability as they were before the impacts of the pandemic took effect. This could reflect, for example, continued reduced levels of private income (in particular if demand remains below pre-pandemic levels); reduced financial reserves or increased debt; and repayments on additional loans secured during this period.
• If increased public health measures were required again, which impacted on the capacity of services (including partial or full temporary closures), local authorities should consider the impact of the continuation of contracted, or expected, revenue streams to funded providers to promote short and long term sustainability. For example, many funded providers will have restructured their business models, and invested in their settings, in order to support delivery of the expanded ELC offer. Lower volumes of capacity and the consequent payments than would been expected will have implications for the financial sustainability of settings
• Local authorities will draw on the separate guidance on Business Sustainability published in April 2019. However, there are some aspects of this guidance where more flexibility will be required. For example, occupancy levels may remain below pre-pandemic levels for some settings which could impact sustainability.
• Local authorities have a vital role in managing risk regarding the delivery of funded ELC. In order to help them manage risk, and to support settings, local authorities may wish to request or review information relating to the financial viability of settings on a more regular basis (particularly if the level of risk in the setting is assessed to be higher)

Criteria 8. Fair work

Settings, including childminders where workers are regularly employed to provide direct care to children, who agree to deliver the funded entitlement will, in accordance with the supporting guidance on Transition Options, pay the real Living Wage to all childcare workers delivering the funded entitlement and commit to adopting and demonstrating fair work practices in their setting. In committing to fair work practices, settings must take into account:

• a fair and equal pay policy across their setting, (including a commitment to supporting the real Living Wage)
• ELC managers/lead practitioners/employers (in the case of childminders who employ staff) have clear managerial responsibilities to nurture talent and help individuals fulfil their potential
• promoting equality of opportunity and developing a workforce which reflects the population of Scotland in terms of characteristics such as age, gender, religion or belief, race, sexual orientation and disability
• security of employment and hours of work, avoiding exploitative employment practices such as inappropriate zero hours contracts, or pregnancy and maternity discrimination
• consideration of patterns of working (including for example part-time working and/or term-time working) and support for family friendly working and wider work life balance
• support progressive workforce engagement, including trade union membership or alternative arrangements to give staff an effective voice, for example, through regular staff meetings, where possible

Requirements from August 2022:

• All settings are expected to meet this criteria.
• The promotion of fair work practices remains a vital way of supporting a high quality workforce and high quality services.
• All settings are therefore expected to commit to adopting and demonstrating fair work practices. Providers should make use of the following resources to assist in adopting fair work practices:
  • Fair Work First Guidance
  • Fair Work Employer Support Tool
  • Fair Work Convention self-assessment tool
  • Fair Work Convention Framework
• Settings should receive sustainable rates that are set at a level which reflects the payment of the real Living Wage to all childcare workers delivering the funded entitlement
• The Scottish Government and local authorities cannot provide the funding to cover the hours that staff spend delivering non-funded hours in their setting
• It is therefore a business decision for funded providers as to whether they provide the additional resource to uplift the salaries of all workers in their settings, including those not engaged in delivery of the funded entitlement, to the real Living Wage. However, providers are encouraged to adopt fair work practices, including fair pay, to ensure fair and equal pay across all relevant staff within their setting

Criteria 9. Payment processes

Settings delivering funded hours must ensure that access to the funded hours are free at the point of access and that parents and carers are not subject to any fees in relation to funded hours. [All settings]

Requirements from August 2022:

• All settings are expected to meet this criteria
• This is a long-standing legal requirement. As set out under section 33(1) of the Standards in Scotland's Schools Act 2000, the entitlement to funded early learning and childcare must be provided without the payment of fees, including where this is delivered through a third party (i.e. providers in the private and third sectors, including childminders), under a section 35 arrangement
• Any charges which are in addition to the funded early learning and childcare entitlement should be for optional extras, and limited to, for example, snacks, and costs of outings. These optional charges include where a setting offers an additional optional service such as the provision of localised cover arrangements required by parents and carers (for example acting as the emergency contact for a child, cover for shift patterns, holiday cover, etc.) which requires the setting to retain a place in order to meet this demand during the hours that the child is receiving part of their funded early learning and childcare entitlement at another setting as part of a split placement
• It is also expected that settings are considerate of the financial challenges that households are continuing to experience as a result of the pandemic and the increases in the cost of living. As a result some families may not be able to afford additional costs

Criteria 10. Food

Settings must have a clear and comprehensive policy for the provision of healthy meals and snacks for children. This should be consistent with Setting the Table and the Eatwell Guide and should ensure that individual cultural and dietary needs are met. There should be consultation with parents and carers about how other dietary preferences might be accommodated. [All settings]

Requirements from August 2022:

• All settings are expected to meet this criteria