Expansion of Early Learning and Childcare – Reinstatement of 1140 statutory duty - Island Communities Impact Assessment (ICIA)

Key Findings

The Scottish Government has reviewed the documents set out in the methodology section above as well as all consultation responses from island authorities to consider whether there is any impact that the implementation of the legislative requirement to deliver 1140 hours of funded ELC from August 2021 will have on island communities that is significantly different to the impact it will have on other communities (including other island communities).

All local authorities have been working to gradually roll out the ELC expansion from 600 hours of funded ELC for all eligible children to 1140 hours since 2017, with 3 island authorities delivering it in full by December 2020 (Shetland, Argyll and Bute and Comhairle nan Eilean Siar). Consultees have stated that as a result of this, the reinstatement of the duty to come into force on 1 August 2021 has not had a significantly different impact on island communities when compared to the impact it has had on other communities.

However, island authorities did highlight the following as particularly challenging implementation issues for island communities:

• Recruitment of staff
• Infrastructure projects
• Supply and demand

Recruitment of staff

In response to the consultation, some island authorities reported particular challenges in recruiting staff to ELC positions in order to fulfil the requirements of the 1140 expansion by August 2021, though it should be noted that other island authorities reported no issues with recruitment. A number of reasons were given for difficulties with recruitment arising in some, but not all, island communities, including localised issues such as:

• Some island communities have a more limited pool of potential candidates, restricted by the physical boundaries of the communities
• A perceived lack of development opportunities for ELC staff in island communities, leading to lower numbers of applications for positions
• A lack of affordable housing within some island communities where ELC job opportunities arise, impacted by the popularity of second homes and buy-to-let properties in island communities
• There is a lack of employment opportunities for partners of ELC employees
• A reluctance of young people to move to/return back to island communities after studying elsewhere
• Commuting options (usually by boat) are often uneconomic and the infrequency of transport means very long working days
• Sustainability issues that arise as a result of staff absences when settings are working to the limit of their adult-to-child ratios

To mitigate this, the Scottish Government has been working with those island communities who have faced challenges in recruiting staff to ELC posts to support the ELC expansion programme. The ELC Delivery Assurance Team have ongoing relationships with individual island authorities and have initiated focussed support on workforce issues. These meetings provide specific focus on workforce planning, staffing and recruitment issues and provide additional support to island communities to address issues and consider mitigation and contingency.

In addition, the Scottish Government has delivered a national recruitment campaign to promote careers in the ELC sector, utilising channels which reached across all of Scotland, including the island communities, via TV, Radio and Digital. Alongside campaign advertising, a series of resources were developed for use by local authorities and partners in local recruitment, including a social media toolkit, posters and leaflets carrying the campaign messaging. These resources can be readily adapted for use at a local level, including by island communities.

To ensure sufficient volumes of skilled practitioners are in place to fulfil the expansion of ELC, the Scottish Government has created additional places on college and university courses across the period of expansion. Since 2017-18, the Scottish Government has worked with the Scottish Funding Council to offer over 3,500 additional HNC places on college courses, including across University of Highlands and Islands campuses. Similarly, the Scottish Government has increased the financial contributions for ELC related Modern Apprenticeships (MAs) which resulted in significant growth of MAs as a training route in to the sector. 2019/20, for example, saw 2,084 MA starts, which was an 18% increase on the previous year. Modern Apprenticeships can be accessed in all parts of Scotland including the island communities.

To further reduce risks around staff recruitment, island communities have been able to benefit from national support that has been provided, including peer support from ELC networks and national discussions on barriers to the delivery of 1140.

Infrastructure

Consultees raised that the delivery of the infrastructure projects required for the 1140 is challenging in some island communities. Specific challenges included:

• Difficulty in obtaining quotes and contacts that present value for money
• Higher material costs
• Higher labour costs as a result of expertise having to be brought in from elsewhere
• Longer timescales due to inclement weather and disruption to ferry services, which can impact on availability of materials, equipment and staff
• Inflated costs of maintenance and upkeep of premises

It was also noted that any potential pausing of construction work due to COVID-19 restrictions may have a further impact on the deliverability of infrastructure projects critical to the delivery of 1140 hours of funded ELC in some island communities.

The Scottish Government recognises that infrastructure projects can be a greater financial burden on island communities as a result of the challenges presented above. To mitigate this, the Scottish Government's ELC Planning Assumptions added a percentage adjustment to the capital cost metrics for those local authorities that were considered to be most likely exposed to higher capital costs due to their geographic location. This included applying the following adjustments to: Argyll & Bute +15%, Orkney +20%, Shetland +25% and Comhairle nan Eilean Siar +30%.

In addition, Scottish Futures Trust has been available to provide targeted support to all authorities, including island authorities, to help deliver their identified capital investment needs and support the delivery of the ELC infrastructure programme.

Supply and Demand

Some island authorities noted that supply and demand issues mean that services have to respond to fluctuations in demand for ELC, as is the case with other settings in those communities. This is a result of the variable profile and demographic of very small island communities, which can require services to increase very quickly proportionately, or reduce service to very low levels where there is no need.

We recognise that this issue is particularly challenging for small island communities, and limits on the ability to travel to access ELC settings elsewhere (i.e. off the island) may exacerbate this. However, whilst these limited transport options may create a difference in available provision, particularly for very small island communities, we do not assess this to constitute a significantly different impact of the expansion policy on those communities (for example, it is likely that other very remote parts of Scotland face similar supply and demand issues). It is also important to note that the expansion policy does not introduce a new duty on education authorities to provide funded ELC when they otherwise may not have, but expands the existing duty to provide 600 hours to 1140 hours.