FEWER than half of nurseries in

Scotland will offer extended “free” hours of care meaning that many families will miss out on funded places when new rules are brought in, a survey shows.

The findings call into question the Scottish Government’s pledge to increase free early learning and childcare provision from 600 to 1,140 hours per year by 2020.

According to the National Day Nurseries Association (NDNA), fewer than half of nurseries in

Scotland plan to offer 1,140 free early learning and childcare hours when the Government’s policy comes in due to a lack of funding.

First Minister Nicola Sturgeon recently announced a £50million investment by 2020 to ensure all private nursery staff are paid the Scottish Living Wage.

But the NDNA says the money must reach the frontline to make a real difference to wages and the nursery sector recruitment crisis.

Full roll out of 1,140 hours – worth around £4,500 towards childcare costs for a working family with a three or four-year-old child – is set to happen in 2020.

A statement by the Minister for Childcare and Early Years, Mark McDonald, is expected today, but concerns raised in the NDNA’s Annual Nursery Survey for

Scotland are the scheme will falter if hourly rates offered to private and third sector nurseries by local authorities for the “free” provision are not enough to cover costs.

The association warns inadequate funding could mean nurseries opting out of the 1,140 hours, or those who try to deliver it running up large losses and pushing up fees to balance their books.

Chief executive of NDNA

Purnima Tanuku said : “The Early Learning and Childcare Policy Blueprint included some great ideas which could transform the landscape for families with pre-school children, including an online Early Learning and

Childcare Account. This would enable parents to pay their chosen provider directly, supporting parental choice. We welcome Ms Sturgeon’s announcement about additional funding, but the policy needs to be scrutinised and thoroughly costed to ensure enough money does reach nurseries to pay staff the Scottish Living Wage.”

She added current funding rates for 600 hours per year for three and four-year-olds mean annual average losses of £1,020 per child. Doubling this offer to working parents could lead to bigger losses for nurseries.

She said: “Three quarters of nurseries plan to increase their fees to parents in the next 12 months so parents are ultimately paying for this policy. Free childcare should be free for families and providers. We want the Scottish Government to take note of this research.”

A Scottish Government spokesman said: “The £50m would extend the Living Wage to all childcare staff delivering funded entitlement in private and third sector nurseries. Staff in NDNA member nurseries will be among those to benefit.

“The Minister for Childcare will make a significant statement to Parliament, setting out the next phase of delivery of our ambitious plans to transform and expand provision of free early learning and childcare by 2020. Quality will be at the heart of a new policy framework.”