Almost half of childcare money ‘not being spent’

Councils accused of using only £189m of £329m extra funding

MILLIONS of pounds handed to Scottish councils to pay for free childcare has not been spent.

Financial analysis of the Scottish Government’s flagship childcare policy shows local authorities were given an extra £329million to fund the scheme between 2014-15 to 2016-17.

But councils have spent or plan to spend just £189million of it on the free childcare parents are entitled to, a Government review has revealed.

Discussions have been held between council chiefs and government ministers who say that local authorities must account for why the money has not been spent on what it was intended for.

Local authority umbrella group Cosla disputed the figures and described the report as a ‘crude assessment’, insisting that it should not detract from the ‘overriding success story’ of councils delivering free childcare.

Childcare and Early Years minister Mark McDonald insisted the figures showed the Scottish Government had fully funded its flagship childcare policy.

All three and four-year-olds in Scotland, as well as vulnerable two-year-olds, are entitled to 600 hours of free childcare every year – up from 412.5 hours when the SNP came to power in 2007.

Mr McDonald insisted: ‘This SNP Government has done more than any previous devolved administration and indeed any other government in the UK to expand free entitlement to early learning and childcare.’

Regarding the funding, he said: ‘Where the money allocated does not all appear to have been spent as intended, it would be for local authorities to account for their spending.’

As MSPs debated the issue of childcare at Holyrood, he said he had held talks with Cosla, which represents the majority of Scottish councils, ‘because we want to ensure that, where we put a policy in place and funding to follow that policy, that that funding benefits those children we want it to benefit’.

Around 125,000 youngsters each year benefit from free childcare, with the SNP having pledged to up the number of hours to 1,140 a year by 2020 – a promise the minister described as ‘our most transformative infrastructure project’.

Scottish Conservative education spokesman Liz Smith said: ‘The Scottish Government has a laudable aim to deliver 600 hours of free childcare, but the reality is that the provision in places remains a problem.’

She claimed the current system is not flexible enough for many working parents, with some families only offered care in three-hour slots.

She urged ministers to adopt ‘radical’ action and ‘properly free up our nurseries and childcare facilities’.

Mrs Smith said: ‘Like parents, the Scottish Conservatives firmly believe we need to completely free up the system so there is a genuine choice and no ability for local authorities to restrict places.’

Labour MSP Daniel Johnson welcomed the Scottish Government’s commitment to childcare, but said more honesty was needed about what is being delivered, as well as realism about whether it is meeting parents’ needs. He added: ‘Almost doubling the hours available will almost double the cost, so is the Government committed to spending in revenue terms an extra £300million or maybe £400million a year?

‘The analysis this week just frankly doesn’t spell this out.’

A Cosla spokesman said the review ‘highlights the complexities in delivering the expansion of childcare’, adding: ‘We are very concerned that there are parts of this report that paint a very misleading picture and do not reflect the reality of what is happening on the ground.’

‘Provision remains a problem’