Progress Report on the Expansion of Early Learning and Childcare

Agenda Item No. 4(d)

South Ayrshire Council

Report by Depute Chief Executive and Director - People to Leadership Panel of 12 June 2018

Subject: Progress Report on the Expansion of Early Learning and Childcare

1. Purpose

1.1 The purpose of this paper is to update Members on the Council’s progress with preparing for provision of 1,140 hours of early learning and childcare (ELC) to children aged three and four and eligible children aged two by 2020.

2. Recommendation

2.1 It is recommended that the Panel agrees the direction of travel in preparing for, and implementing, 1,140 hours of early learning and childcare across South Ayrshire.

3. Background

3.1 The Scottish Government has made a commitment to extend the entitlement of funded early learning and childcare to all 3 and 4 year olds and eligible 2 year olds from 600 hours to 1,140 hours a year by 2020. This is set out in A Blueprint for 2020: Expansion of Early Learning and Childcare In Scotland’. The Leadership Panel of 19 September 2017 approved the draft plan for the expansion of early learning and childcare in South Ayrshire.

3.2 Local authorities were required to submit their initial plans to the Scottish Government by 29 September 2017. Following meetings with the Scottish Government, local authorities were asked to revise and resubmit their financial templates by 2 March 2018.

3.3 On Friday 27 April 2018, COSLA Leaders agreed distribution of the funding. On 1 May 2018, the Scottish Government confirmed multi-year revenue and capital allocations to each local authority. This funding is allocated as a specific grant and protected for investment in early learning and childcare. The budget allocated for South Ayrshire includes an incremental increase in revenue funding over the period to 2021 rising to £9.695 million (inclusive of inflation), and £15.360 million (£0.560m 2017/18) additional capital funding to deliver 1,140 hours of ELC.

1 4. Proposals

4.1 Capital Programme

A programme of work including extensions, adaptation and refurbishments to other establishments is required to create capacity for the increased provision. Details of this work are outlined in Appendix 1 and this work will be fully funded by the Scottish Government capital grant. During 2017/18 capital funding was invested in Maidens and Annbank early years centres. These centres were refurbished to include provision for two year olds and increased provision for children aged three to five.

Updates on progress with investment in our early years establishments will be provided to Leadership Panel as part of the regular General Services Capital Programme reports.

4.2 Phasing of 1,140 hours

Between August 2016 and June 2018, five early years centres (Space Place, Annbank, Ballantrae, Newton and Colmonell) introduced pilots to deliver the 1,140 hours. These pilots have been beneficial in refining operational approaches to ensure that children continue to receive high quality early learning and childcare during extended days and full year provision. As part of the phased implementation, 3 additional centres will offer 1,140 hours (Crosshill, Maidens and Dailly) in 2018/19.

4.3 Staffing

The revenue funding provided by Scottish Government assumes inflation of 1.3% and a slower implementation than that included in the Council’s submission. Officers are concerned that inflation may be higher than 1.3% assumed and have amended the original implementation plan to reflect 2.5% inflation and the slower implementation. Based on the funding that has been granted, indicative staffing arrangements have been amended:

EY staff in post 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Original submission 195.3 204.2 281.2 356.9 535 536.1 (Sept 17)

March 18 Submission 183.5 194 255.5 321.5 354 401

Amending in line with 183.5 188 215 272 353 406 funding (May 18)

The Leadership Panel report of 17 September 2017 provided the Chief Executive with delegated authority to implement the delivery plan, including creation of any new posts required to support the expansion of early learning and childcare. The indicative staffing arrangements outlined may alter to reflect refinements in service delivery during the implementation phase. This will continue to be delivered within existing early years budgets and the additional resources allocated from the Scottish Government. The programme, overall, offers significant employment opportunities in terms of training, career development and redeployment.

2 4.4 Additional Graduate Commitment

By August 2018, early years centres in the most deprived areas across Scotland will benefit from an additional graduate. South Ayrshire has been allocated 12 Additional Graduates, with £0.331m (part year) included in the revenue settlement for 2018/19. These posts, at senior practitioner level, will support early intervention and closing the poverty related attainment gap. The Scottish Government is committed to meeting the recurring full year costs of this commitment.

The additional graduate posts are funded to improve outcomes in areas of deprivation and were advertised during May with a start date of August 2018.

A further £6m has been retained by Scottish Government and Councils are invited to bid for additional graduates. Any balance of unused funding remaining after the bid process will be distributed to Councils on the basis of pre-school education grant-aided expenditure, adjusted to take account of the estimated eligible 2 year olds.

4.5 Free Meal Entitlement

Currently, eligible children attending early years centres for more than 4 hours are entitled to free meals, including those attending partnership centres. By 2020 this will be extended to all children, similar to the primary 1-3 free school meals programme. Planning for this extended provision of meals is being undertaken in partnership with the Council’s Facilities Management team. This includes production kitchens in larger centres, provision of services during holiday periods, purchase of crockery and cutlery, and arrangements for the transportation of lunches. Funding of £0.76m was requested as part of Council submission and is included within the revenue funding allocation.

4.6 Training

Implementation of early learning and childcare across South Ayrshire will require approximately 222.5 additional staff to deliver the expected level of service. The South Ayrshire ‘Training Academy’ is now delivering qualification training to candidates to ensure a sufficient, qualified workforce is available.

The first cohort of school assistants started qualification training in March 2018. Furthermore, a second cohort of modern and adult apprentices began in May 2018 and it is anticipated that further cohorts will run during 2018/19.

5. Legal and Procurement Implications

5.1 The recommendations in this report are consistent with legal requirements and reflect appropriate advice.

5.2 The recommendations in this report are consistent with procurement requirements and reflect appropriate advice.

6. Financial Implications

6.1 The phased implementation of the expansion plan has been amended to take account of the financial settlement.

3 6.2 Revenue Costs (£m) 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Base budget 7.130 Additional Funding requested based on 0.652 3.653 6.797 7.834 9.001 financial template(March 2018) Funding allocated from 0.338 1.451 5.253 8.691 9.695 Scottish Government Funding required based 0.261 1.646 5.000 8.263 9.002 on amended template (PY) Funding required based on 2.5% compound 1.646 5.125 8.681 9.694 inflationary increase from 2019/20 Difference 0.077 0.195 0.128 0.010 0.001

It is anticipated that funding overall will be sufficient. and income generated from selling additional spaces in early years centres will be used to help balance expenditure over the years.

6.3 Capital Costs (£m)

2017/18 2018/19 2019/20 2020/21 Total

Refurbishment projects 0.820 0.556 0.056 0.680 2.113

Extension projects 0.560 3.197 0.938 4.695

New build projects 1.840 1.166 2.803 5.809

Outdoor spaces 0.250 0.250

Inflation (compound 2.5% pa) - 0.074 0.224 0.359 0.657

Total required 0.820 3.030 4.643 5.031 13.524

Total allocated 0.560 5.000 5.800 4.000 15.360

6.4 The capital programme will be reviewed to ensure maximum impact of the additional funding for children and families.

7. Human Resources Implications

7.1 Revenue funding will be used to increase staffing to deliver 1,140 hours. The proposed increase in staffing is 222.5 FTE over the next 4 years.

4 8. Risk

8.1 Risk Implications of Adopting the Recommendations

8.1.1 New risk(s) have been identified and assessed in line with the Council’s risk management process as follows:

 Failure to deliver the capital programme; and  Failure to employ sufficient staff.

These will be managed within existing operational activities and reference to the status of mitigations will be recorded through the People and Place Directorate Risk Registers.

8.2 Risk Implications of Rejecting the Recommendations

8.2.1 Rejecting the recommendations will have a negative impact on the reputation of the council and may give rise to external criticism, breach of statute or legal challenge.

9. Equalities

9.1 This report provides an update on progress of a recent Panel report which was assessed for potential equality impacts, and the relevant documentation is attached as Appendix 2.

10. Sustainable Development Implications

10.1 Considering Strategic Environmental Assessment (SEA) - The Scottish Government Gateway has been contacted regarding this plan, policy, programme or strategy, and it has been determined that an SEA will not be pursued.

11. Options Appraisal

11.1 An options appraisal has not been carried out in relation to the subject matter of this report.

12. Link to Council Plan

12.1 The matters referred to in this report contribute to the Council strategic objective of ‘Reduce poverty and disadvantage’ and within that to the outcome ‘Expand early years provision and improve services for children and young people to ensure the best possible start in life’.

13. Results of Consultation

13.1 There has been public consultation on the contents of this report. A consultation with parents and carers was held in June 2017. Feedback was used in the development of the plan.

13.2 Consultation has taken place with Councillor William Grant, Portfolio Holder for Lifelong Learning, and the contents of this report reflect any feedback provided.

5 14. Next Steps for Decision Tracking Purposes

14.1 If the recommendations above are approved by Members, the Depute Chief Executive and Director – People will ensure that all necessary steps are taken to ensure full implementation of the decision within the following timescales, with the completion status reported to the Leadership Panel in the ‘Council and Leadership Panel Decision Log’ at each of its meetings until such time as the decision is fully implemented:

Implementation Due date Managed by

Implement the capital August 2021 Director - Place programme

Quality Improvement Implement the phased August 2021 Manager – Early approach to increase staffing Years

Background Papers None

Person to Contact Aileen Valenti, Quality Improvement Manager County Buildings, Wellington Square, Ayr, KA7 1DR Phone 01292 612021 E-mail: [email protected]

Date: 4 June 2018

6 Appendix 1 Proposed Capital Programme

Comments 2017/18 Annbank Early Years centre Major refurbishment Complete Maidens Early Years Centre Major Refurbishment Complete 2018/19 Ballantrae Early Years Centre Extension Cherry Tree Early Years New build Centre Wallacetown Early Years Additional toilets and

Centre internal upgrading £200K from refurbishment Conversion of existing Doonfoot Early Years Centre budget, £400k from building developer 2019/20 Ayr Grammar Major refurbishment Outdoor Early Years Centre New provision Barr Early Years Centre Extension Coylton Early Years Centre Extension Forehill Early Years Centre New build Kincaidston Early Years Extension Centre Monkton Early Years Centre Internal reconfiguration Symington Early Years Extension Centre 2020/21 Cairn/ Gardenrose Early Awaiting outcome of TBC Years Centre consultation Awaiting outcome of Glenburn/ St Ninians TBC consultation Troon Early Years Centre Extension Struthers Early Years Centre Extension

7 Appendix 2 SOUTH AYRSHIRE COUNCIL EQUALITY AND DIVERSITY IMPACT ASSESSMENT

Section One: Policy Details*

Name of Policy Expansion of Early Learning and Childcare- Draft Plan Lead Officer (Name/Position) Aileen Valenti

Policy Development Team Kate O Hagan (Names/Positions) Donald Gillies Tim Baulk

Critical friend (s) Douglas Hutchison

*Policy could include strategy, project or application: see guidance attached.

What are the main aims of the To expand provision for early learning and policy? childcare from 600 hours to 1140 hours by 2020

What are the intended outcomes  To increase capacity for early learning of the policy and childcare to 1140 hours  To increase staffing in order to maintain staff ratios  To provide high quality, flexible, accessible early learning and childcare for children and families

Section Two: What are the Likely Impacts of the Policy?

Will the policy impact upon the whole population of South  This plan supports early learning and Ayrshire or particular groups childcare, early intervention and local within the population (please communities with a priority on supporting specify families in areas of deprivation.

8 Considering the following Protected Characteristics and themes, what likely impacts or issues does the policy have for the group or community.

List any likely positive and/or negative impacts

Protected Characteristics Positive and/or Negative Impacts

Race: Issues relating to people The proposed expansion will be being offered of any racial group, ethnic or equally across all ethnicities including gypsy national origin, including gypsy travellers and migrant workers. travellers and migrant workers

Sex: Issues specific to women or Potential positive impacts as the support will be men provided to both male and female parents and children.

It is believed that the extension of the number of hours of early learning and childcare and increased capacity will bring particular benefits for women as the primary carers, particularly impacting upon the cost and accessibility of childcare as a barrier to return to work.

Expansion of early learning and childcare provision will also lead to an increased demand for numbers in the early years workforce. At present, this workforce is overwhelmingly feminised so this would impact significantly more on female members of the workforce. It is proposed to increase the number of men in the workforce as part of the increase in staffing.

Disability: Issues relating to Opportunities for more respite for parents and disabled people carers of children with disabilities. Increased support for children with additional support needs.

Age: Issues relating to a This proposal is specifically targeted at particular age group e.g. older improving outcomes for children aged three to people or children and young five and eligible children aged two. people The evidence suggests that provision for early learning and childcare will have a positive impact on the young children in securing positive outcomes.

9 Religion or Belief: issues The proposed increase in capacity will, as relating to a person’s religion or previously, be being offered equally across all belief (including non-belief) religions and beliefs.

Sexual Orientation: Issues Potential positive impacts as the support will be relating to a person’s sexual provided to both parents and children orientation i.e. lesbian, gay , bi- irrespective of sexual orientation. sexual, heterosexual

Marriage and Civil Partnership: Potential positive impacts as the support will be Issues relating to people who are provided to all parents irrespective of marital married or are in a civil status. partnership.

Gender Reassignment: Issues Potential positive impacts as the support will be relating to people who have provided to all parents who have proposed, proposed, started or completed a started or completed a process to change his or process to change his or her sex. her sex.

Pregnancy and Maternity: No specific impacts anticipated. Issues relating to the condition of being pregnant or expecting a baby and the period after the birth.

Multiple / Cross Cutting There are a number of multiple/cross cutting Equality Issues issues including age, disability and race. Issues relating to multiple protected characteristics. .

Equality and Diversity Themes Particularly Relevant to South Ayrshire Council

Health There will be a positive impact on families Issues and impacts affecting through access to local, flexible early years people’s health provision.

10 Human Rights: Issues and We will continue to ensure that all service users impacts affecting people’s human are treated with dignity and respect. This rights such as being treated with proposal positively supports the rights to dignity and respect, the right to education and family life. education, the right to respect for private and family life, and the right to free elections.

Rurality Impacts relating to living and The proposal will enhance the current limited working in a rural community childcare options in rural areas. Deprivation As above the provision of extended early Issues relating to poverty and learning and childcare will have a positive social exclusion, and the impact on supporting key skills including health disadvantage that results from it. and wellbeing, literacy and numeracy of young children and contribute to closing the attainment gap.

Section Three: Evidence Used in Developing the Policy

Involvement and Consultation In assessing the impact(s) set out above what evidence has been There has been consultation with trade unions collected from involvement, representatives, parents and childcare providers engagement or consultation? as part of the development of the plan. Who did you involve, when and how?

Data and Research A variety of research on the positive impact of In assessing the impact set out early intervention has informed this paper. This above what evidence has been includes Early Intervention -The Next Steps, collected from research or other 2011, Joining the Dots, 2011 and The Effective data. Please specify what Provision of Pre-School Education (EPPE ) research was carried out or data Project collected, when and how this was done.

Partners data and research In assessing the impact set out Health data, census data and population above what evidence has been statistics have been used to help develop the provided by partners. Please proposals in the plan. specify partners

Gaps and Uncertainties Have you identified any gaps or There remains uncertainty around the level of uncertainties in your funding that will be provided by Scottish understanding of the issues or Government for the expansion. impacts that need to be explored further?