Funding follows the child and the national standard for early learning and childcare providers: guidance on criteria 7 - business sustainability

Section 8: Ongoing Review

55. As part of contract management, the local authority may request business sustainability evidence on an ongoing basis. The approach taken must be proportionate and is likely to be requested based on the risk and capacity of the with private or third sector provider (see Figure 3).

Figure 3: Determining frequency of review

56. It would be anticipated that higher risk funded providers or those with a high volume of funded places would be requested to provide evidence on a more frequent basis than funded providers that are deemed as lower risk or provide a small number of funded places.

57. It is also expected that local authorities, alongside their duty to consult with parents and carers to inform delivery of ELC in their area, will continue to review the ELC market in their area and map capacity.