Exclusive:More private nurseries in Edinburgh 'will shut without U-turn', as legal action drags on

Partnership nurseries claim the council is short-changing them by not paying enough to ensure their establishments can survive. They say decisions taken to end cross-border placements and to block private nurseries from gaining partnership status are creating intolerable strain on the sector.

Sharon Fairley is the owner of four Little Flyers nurseries and a previous head of the Scottish Early Years Alliance.

Ms Fairley said the situation for private nurseries was a “constant challenge” because of a lack of a “level playing field” between private and council settings.

Monday to Saturday, our daily newsletter brings you the best stories

She said: “It's a pretty broken sector at the moment, due to many challenges, not least the current financial challenges. There is an unfairness that councils have got the autonomy to do what they want with funding form the Scottish Government, and we don't get the fair funding passed on to us.

“Children are losing out.”

In August 2021, the Scottish Government introduced a policy of allocating 1,140 hours of funded childcare provision to all three to five-years-olds and some two-year-olds. The funding is paid to the local authority, which then distributes the funds to private sector nurseries that work in “partnership” with the council.

Edinburgh councillors will vote on Tuesday on whether to increase hourly funding from £6.49 to £6.77 for three to five-year-olds and £6.97 to £7.27 for two-year-olds. This money should have been increased in April, but there was a delay and now the issue will go before councillors at committee.

Ms Fairley said private nurseries require around £10 an hour per child to sustain their businesses.

She called for the Scottish Government to reintroduce a voucher system where, rather than the funds being paid to the local authority to allocate, they are paid directly to parents.

The committee will also discuss the allocation of partnership status to nurseries, which gives parents additional choice and flexibility.

Edinburgh is refusing to allow new nurseries to obtain partnership status, which sees private nurseries work with the council, giving longer opening hours and increased choice for parents. One private nursery has taken legal action against the council, which has been ongoing for more than a year.

The nursery has claimed the council’s position is a breach of procurement regulations and councillors are being asked to vote on Tuesday about what Edinburgh’s next step should be.

The nursery owner opted not to speak to The Scotsman but Ms Fairley, who is close to the situation, said there was dismay that the situation had dragged on for so long.

The council papers state: “Edinburgh’s early years delivery plan has been based on 35 per cent of children receiving their funded hours in partner provider settings. Since implementing the expansion, the percentage of children accessing their funded hours in partner settings is currently 40 per cent.

“This increase costs the council approximately £3.9 million.”

Ms Fairley said, as some parents opt not to take up the full allocation of 1,140 hours, nursery places lie empty. “The situation is not sustainable,” she said.

Councillor James Dalgleish, education, children and families convener, said the council “works in partnership with a range of providers” and these partnerships are “valued”.

“All providers that are in partnership with us to deliver funded early learning and childcare pay their staff the Real Living Wage, with many paying their staff more,” he said. “In line with Scottish Government guidance, funding follows the child.

“We have a no charging approach to cross boundary places and we continue to provide funded places at our local authority settings for children who are not Edinburgh residents.”