The Scottish Government will be undertaking an economic evaluation as part of our multi-year strategy for evaluating the impact of the expansion of funded early learning and childcare (ELC) to 1,140 hours on outcomes for children, parents and families. The purpose of an economic evaluation is to compare the value of the outcomes of a policy to the overall costs of that policy, in order to determine the value for money of the programme. Details of the economic evaluation approach were published in section 6 of our Evaluation Strategy published in October 2022. Work on the economic evaluation will begin in 2023 and the final phase of this work is due to be completed in late 2025 – to allow the information from the Scottish Study of Early Learning and Childcare (SSELC) to be used in the economic evaluation.

Routine spending information that councils report does not distinguish between spending on 600 hours of funded ELC and spending on the additional hours provided by the expansion. The Scottish Government has therefore gathered separate financial information on spending on the expansion from councils three times. However, despite best efforts, the information gathered does not provide a comprehensive picture of how much councils have spent specifically on the expansion at a national level. Measures are being taken by the Scottish Government to change reporting through local financial returns to produce more detailed information on how much councils have spent specifically on the provision of funded ELC.

I refer the member to the answer to question S6W-18980 on 21 June 2023. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

Based on the existing cost estimates, the Scottish Government will have provided £2,104,833 of grant funding to support the development of the new SEEMiS Early Years system. As is standard procedure, a contingency value of £91,043 has been retained by Scottish Ministers and will only be made available under extenuating circumstances.

According to the latest Scottish Government Early Learning and Childcare census data from September 2022, 99% of 3- and 4-year-olds, and 14% of 2-year-olds, are estimated to be registered for funded early learning and childcare (ELC), and 18% of these child registrations are of children with additional support needs. The 2022 Parents’ Survey found that 85% of parents with children with additional support needs were satisfied that funded ELC meets their child’s needs.

Although we do not have data on how many hours of funded ELC these children are accessing, given these overall figures we envisage that a significant proportion of eligible children with additional support needs are currently accessing their entitlement to 1,140 hours of funded childcare. We are currently developing the ELC census and are looking to collect more information on the characteristics of children accessing funded ELC, and the hours they are registered for.

I am proud of what we have achieved with the expansion to 1140 hours, and I was pleased to see Audit Scotland recognising that the Scottish Government, local authorities and partners did well to deliver the expansion despite the challenges of a global pandemic. I was also pleased to see Audit Scotland conclude that most parents are happy with the flexibility available as part of the expanded Early Learning and Childcare offer. Providers in the private, third and childminding sector have an important role to play in continuing to offer this flexibility.

Recognising the need to support the sector the Scottish Government made more than £35 million of dedicated financial support available to private, third and childminding sector services during the pandemic; we have legislated to continue the Nursery Rates Relief Scheme, which provides 100 per cent relief on Non-Domestic Rates to eligible day nurseries beyond the previous end date of 30 June 2023; and we have funded pilot programmes of targeted Business Gateway support to enable childcare providers to access tailored, specialist advice on strengthening their businesses.

Childminders are a valued part of our ELC sector, providing a unique form of high quality childcare in a nurturing home-based environment. We continue to work closely with the Scottish Childminding Association to support a successful childminder recruitment pilot aiming to recruit and train 100 new childminders in remote and rural communities. We are also supporting a second phase which is trialling this recruitment model in urban communities within Edinburgh, Glasgow, Dundee and East Renfrewshire.

The Scottish Government is committed to supporting a diverse, sustainable and thriving childcare sector. However, I recognise there are real challenges facing the sector as a result of delivering an expansion in the face of the pandemic, Brexit and now the costs crisis. The Scottish Government is committed to working closely with every part of the childcare sector to understand and address these issues together. I hosted a round table with sector representatives on Tuesday 18 April to hear about challenges and opportunities for the sector, and I will be undertaking a programme of engagement over the next few months.

The data gaps identified by Audit Scotland relate to different elements of funded early learning and childcare (ELC). These include workforce movement, the living wage, parental demand, financial data, and the extent to which children with additional support needs are accessing funded ELC. As Audit Scotland note, providing a national overview of ELC data will require action by the Scottish Government, local authorities and other partners.

In relation to data on the movement of childcare staff between different types of provider, the Scottish Social Services Council will be publishing an analysis of staff movement within the Day Care of Children Category before the end of June 2023.

In relation to financial monitoring, the Scottish Government is working to change reporting through local financial returns to produce more detailed information on how much councils have spent specifically on the provision of funded ELC.

For information on action that the Scottish Government is already taking to improve ELC monitoring data in relation to the living wage and children with additional support needs, I refer the member to the answers to questions S6W-18994 and S6W-18992 on 21 June 2023.

All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

Working with our Monitoring and Evaluation Working Group, we have set out a multi-year strategy for evaluating the impact of the expansion of funded early learning and childcare to 1,140 hours on outcomes for children, parents and families. The bespoke Scottish Study of Early Learning and Childcare (SSELC) is the main vehicle for collecting evaluation evidence on child and parent outcomes. Baseline data for the SSELC was collected during 2018 and 2019 from children and their parents accessing 600 hours of funded early learning and childcare. During 2023 and 2024 data will be collectedfrom a sample of children and parents accessing 1,140 hours. The Final Early Learning and Childcare Expansion Evaluation Report is due to be published in late 2025. More information can be found in our Evaluation Strategy published in October 2022.

Throughout the 1140 expansion we have sought to improve conditions across the private, third and childminding workforce delivering funded ELC, including through our investment to support sustainable rates to be set at a level to enable payment of the real Living Wage to those workers delivering funded ELC . Evidence from the Financial Review of the ELC Sector highlights that when the ELC expansion began around 80% of practitioners and 50% of supervisors in private and third sector settings delivering the funded ELC were paid an hourly rate below the real Living Wage. In contrast, our 2021 Financial Sustainability Health Check indicated that 88% of funded ELC providers in the private and third sectors intended to pay the real Living Wage to all their staff from August 2021.

As set out in the supporting Funding Follows the Child and National Standard Contracting Guidance it is expected that within the contract terms and conditions for funded providers local authorities will set out expectations regarding payment of at least the real Living Wage to all childcare workers delivering the funded hours.

In partnership with the sector and local authorities, we have taken important steps to improve our understanding of real Living Wage progress, and to support providers to deliver higher pay and Fair Work. To support this we have established a real Living Wage and Fair Work Implementation Group to explore implementation challenges and potential solutions to help all childcare providers become real living wage employers. The first meeting of the Group took place on 15 December 2022. The group is due to reconvene shortly.

We are also collecting further information regarding the payment of the real Living Wage as part of our update of the Financial Sustainability Health Check; and through the joint Scottish Government and COSLA Review of Sustainable Rates. Both of these reports will be published this Summer.

Work is underway now and the current timescale for development completion of the SEEMiS Early Years IT platform is Jan-Mar 2024. The actual system “go live” date is yet to be decided, with an options appraisal currently underway and scheduled for Project Review Board consideration over summer 2023.