Rate increase agreed for early years funded providers

North Ayrshire Council has agreed to increase the hourly rate paid to funded providers of early learning and childcare.

At a recent Cabinet meeting, a four per cent increase was agreed to take the 2025-26 hourly rate for three-to-five year olds from £6.51 to £6.77. For eligible two-year-olds, the rate has increased from £6.81 to £7.08.

The council will receive £256,000 from Scottish Government in 2025-26 to fund this uplift, and all increases will be backdated to 1 April 2025.

Additionally, payments for meal costs have also been increased to take food inflation into account. Payments per meal will go up by three per cent from £3 to £3.09 for all funded providers – including childminders – from 1 April 2025 onwards.

Since August 2021, all three and four-year-old children and eligible two-year-olds have been entitled to 1140 hours of funded early learning and childcare annually.

To deliver this across Scotland, local authorities work with both council-run services and local partner providers in the private and not-for-profit sectors, including childminders.

As well as 44 council establishments, North Ayrshire Council currently has contracts with 15 funded provider nurseries and 74 childminders to deliver ELC entitlement to families.

The latest rate increase supports the delivery of high quality early learning and childcare across North Ayrshire which is allowing youngsters to get the best possible start in life. It also helps funded ELC workers in private and third sector services to be paid the real Living Wage of £12.60.