Highland Council in 'U-turn' on early learning childcare rates
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Highland Council has been accused of caving in to pressure and U-turning on early learning and childcare (ELC) just a month after deciding to freeze rates for the private, voluntary and independent (PVI) sector.
On Thursday, councillors will be asked to agree a temporary hike in payments to help those delivering the Scottish Government’s 1140 hours of free childcare after refusing at a previous meeting.
The cash-strapped local authority is now offering to increase the rate it pays towards this provision for two years from £6.13 to £6.66 per hour and for three to five-year-olds the £5.43 rate will go up to £5.75 per hour.
It will then be decided if that new funding level will start this month – which would cost £240,000 – or if it should be backdated to August – costing £365,000. It would run until March when the new budget is finalised.
The move to freeze rates last month was met with outrage from the PVI sector and though the issue was to be kept under review, there was cross-party support for a special meeting.
That was tabled by Conservative group co-leader Councillor Helen Crawford who said the only reason the SNP-Independent council administration reconsidered its position was because of the rebellion in its own ranks.
Cllr Crawford, who feared some providers could go broke leaving many without access to the service, tentatively welcomed the development but said more must be done.
“It’s a temporary fix but something that is essential if our ELC partners are to continue in the short term,” she said.
“This sector made a plea to us at the last full council when we were asked by the SNP-Independent coalition to wave through a rate freeze, with very little visible analysis of the situation.
“Nurseries across Highland appealed to us to say they had not been fully consulted and they would not be able to keep their doors open if the rate was frozen.
“I have been working closely with many in the ELC sector across Highland and my concern is what happens now.
“The fact remains that Highland Council is very much an outlier in terms of the rate it has set. Many of our neighbouring councils have set significantly higher rates to ensure that these providers of quality childcare are robust.
“For example, Moray set the rate at £6.30 last year and is about to review that and it is my understanding that Argyll and Bute’s fees are similar to Moray too.
“The interim rate being offered as a temporary measure by Highland Council is £5.75, significantly below many of our nearest, and most comparable, neighbours. We really need to ask why that is, how we got to that position and how we can correct it.”
Budget leader Derek Louden ruled out a permanent increase for the moment because of seven per cent cuts needed across all services amid a looming overspend of £9 million this year and £40 million next year.
Chairman of the council’s education committee John Finlayson said: “Providing additional in-year financial support for these partner organisations is welcome news.
“We are all acutely aware of the impact of rising costs and how this is affecting all organisations, businesses and families. We know these cost increases, particularly for food and energy, are also having an impact on the ELC sector.
“I am pleased that we are able to offer some support in these difficult times.”
