Boost to Early Years Pay in Scotland

Boost to Early Years Pay in Scotland

The Scottish Government has announced that it will be committing an extra £16 million to ensure that all staff in private, voluntary and independent childcare settings can be paid a minimum of £12 an hour. This amounts to a minimum uplift of 7.6% to the rates paid by local authorities to deliver funded hours and is intended to help boost recruitment and retention rates, including the recruitment of an additional 1,000 childminders. 

The plan to set a minimum wage of £12 an hour was originally announced by the First Minister Humza Yousaf in September last year as part of his first Programme for Government. He has now taken the opportunity to announce the new funding himself, while visiting Task Childcare in Glasgow on International Women’s day. Pictured surrounded by children playing with coloured blocks in a sandpit, he spoke of the importance of childcare to supporting female employment. 

The focus on the PVI sector is notable. Unlike in England, much of Scotland’s childcare provision is provided by nurseries maintained by local councils, and independent providers have long argued that they are not always treated fairly. In particular, they are often not funded at the same rates as the council’s own providers, making it hard to compete without increasing their prices. The introduction of 1140 funded hours for 3 and 4 year olds, which is set to expand further in coming years, only increases this pressure.

The increase in funding has been welcomed by the sector, but as ever, more attention will likely be needed to ensure that providers are able to meet the ever increasing demand while still delivering high quality care.