Data Collection: Costs of Delivering Funded ELC in Private, Third Sector and Childminding Settings

Description

The Scottish Government wishes to commission research to collect data on the costs of delivering funded ELC. This data will contribute to future budgeting processes and will be used to inform updated guidance to support local authorities to set appropriate sustainable rates to settings delivering funded ELC. Lot 1: Local authorities are responsible for setting sustainable funding rates for providers in the private, third and childminding sectors who deliver funded ELC. The joint Scottish Government and COSLA Sustainable Rates Review sets out a wide ranging programme of actions to strengthen the process for setting sustainable rates. Following on from this, the Scottish Government wishes to commission a cost data collection exercise. As a minimum, the data gathered should allow for robust and reliable estimates of: The costs of delivering an hour of funded ELC to: - 2 year olds - 3-5 year olds How these costs vary across: - Type of Provider - Size of Provider - Local Authority - SIMD quintile - Urban-rural classification - Expectations on costs increasing/decreasing as compared with inflation. - The costs of delivering meals with the setting (and delivery of the free meal commitment) - An estimate of surplus/return on investment/profit - Staff salaries and pensions including costs for temporary staff and pension schemes. This should also include salaries of business owners. - Information on staff pay differentials, across different grades and roles - Pricing structures within settings - Income/Revenue sources, including estimates of the current contribution that funding to deliver funded ELC makes to overall income. The service provider will be expected to engage with a range of stakeholders including funded providers and sector representative bodies via the Sustainable Rates Review Implementation Working Group.. The Contract may be extended by up to a period of 6 months, to a date falling no later than 9 June 2026, at the sole discretion of Scottish Ministers.