Financial watchdog warns of risks facing new Scottish childcare scheme

Scotland's First Minister Nicola Sturgeon, visits the conference creche in Glasgow.

Scotland’s new childcare scheme has been put into practice, providing up to £2,000 towards the annual cost of childcare.

An estimated 200,000 families will be eligible for the scheme, where the government will pay two pounds for every eight pounds paid in by parents.

“All eligible parents with children under 12 can now apply through Childcare Choices and should take advantage of the available support,” said Liz Truss, chief secretary to the treasury.

A spending watchdog has said that the ambitious plan from Scotland to double childcare hours by 2020 has “significant risks”. 

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“The scale of change needed over the next two years is considerable and there are significant risks that councils will be unable to deliver that change in the time available,” said Graham Sharp, chair of Audit Scotland’s Accounts Commission.

“There is now an urgent need for plans addressing increases in the childcare workforce and changes to premises to be finalised and put in place,” he added.

Scottish Labour said that the total cost would exceed expectations of £840 million and would actually cost £1 billion. On top of this, a report stated that not enough had been done to ensure that the required 8,000 extra full-time staff would be in place by 2020.

Holyrood’s minister for childcare and early years, Maree Todd, remained positive that the Scottish government were on track to deliver plans.

“It is not unusual, at this point in the life of a major project, for people to have different ideas as to the final cost. What is not in doubt is that the Scottish government has pledged to fully fund this policy.”

Scotland’s financial watchdog has told councils that the government does not have the money, staff or infrastructure required to deliver these changes. It has been estimated they are £160 million underfunded.

The report by the watchdog is the first of many audits of the expansion of funded early learning and childcare in Scotland.