Scottish ministers urged to cap costs as part of ‘childcare guarantee’

Scottish ministers could make a “life-changing difference” for families by providing childcare to youngsters from the age of just nine months and by capping the costs for parents.

Campaign group Pregnant Then Screwed insisted that the current childcare system – where most youngsters can get 1,140 hours of free care a year from the age of three – is “not flexible enough” and “not affordable enough”.

Instead they propose youngsters should be able to receive funded childcare from nine months old – and that the costs of care should be capped at 5% of the family income.

Carole Erskine, Pregnant Then Screwed’s head of policy and campaigns for Scotland, insisted their proposals were “bold”, “progressive” and “completely possible”.

Their report said the change – which they called “Scotland’s Childcare Guarantee” – would increase annual spending on childcare from “roughly £1.3 billion today to about £3.4 billion”.

But the report, which featured modelling from the New Economic Foundation, said there “could be up to 13,000 fewer children living in poverty, just from making childcare affordable and enabling parents, especially mums, to work”.

It also said the poorest 40% of families could be up to £4,000–£4,500 better off each year – adding this was “roughly 20% of their disposable income”.

“That’s a life-changing difference for those hit hardest by childcare costs,” Ms Erskine said.

She added that “for too long, we’ve treated childcare as a private problem, something for parents – usually mothers – to figure out on their own”.

And she said: “Childcare is not a luxury. It’s the infrastructure that holds up our economy, enables gender equality and gives every child a fair start in life.

“The cost of childcare is crippling families and leaving many with no option but to give up work because fees are swallowing their wages whole.”

This can have a “splinter effect on families for years to come” as a result of  lower wages, lost promotions, lack of career development and the impact on mental health.

Adding that the cost of childcare is “pushing thousands of families into poverty and keeping them there”, Ms Erskine said the current funded hours set-up is “often a confusing and inaccessible system which is still unaffordable for many” and forces people to “pick between working and raising a family”.

Research by the Scottish Women’s Budget Group in 2023 found that more than 80% of women said childcare costs affected their ability to work – and that only 15% were able to access the hours they need.

The system proposed as “Scotland’s Childcare Guarantee” would see all children from nine months to two years old eligible for 570 hours of childcare a year.

Low income families with two-year-olds would then be able to get 1,140 hours a year – the same as at present – while other youngsters would get 570 hours a year.

And all three, four and five-years-olds would continue to be eligible for 1,140 hours of funded childcare.

The report said there would be a “simple ceiling on childcare fees” so that “families would never pay more than 5% of their earnings, regardless of how many children they have or how many hours of care they need”.

Ms Erskine stated: “This model would open up childcare options for all in a fair and easy to understand way.

“We need politicians to take notice. It’s time to stop patching up a broken system and start again, with a model that actually works.”

A Scottish Government spokesperson said: “Scotland remains the only part of the UK to offer 1,140 hours a year of funded early learning and childcare (ELC) to all three and four-year-olds and eligible two-year-olds regardless of their parents’ working status, backed by £1 billion annual investment since 2021 when delivery of the policy began.

“If families paid for this offer themselves, it would cost them more than £6,000 per eligible child per year.”

The spokesperson added: “The Scottish Government has taken a number of actions to ensure families have access to affordable, flexible, high-quality childcare, despite the challenging financial circumstances we are operating in.

“This includes investing up to £16 million over two years within six local authority areas participating in our early adopter community projects, expanding access to childcare services to tackle poverty and improve outcomes for children.

“Insights from these six communities will inform any future changes to the national approach to delivering place-based, people-centred childcare systems.

“Any work that considers how we can further our shared goals of improving children’s outcomes and supporting family wellbeing, and addressing the determinants of child poverty, is welcome.”