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

Section 7: Special Circumstances

47. There are specific circumstances where a local authority may consider alternative evidence to assure themselves that the Business Sustainability criteria is met.

7.1: Newly Established Settings

48. As part of the Care Inspectorate registration process, rigorous tests (detailed in Annex A) are applied to new settings. On this basis, it is suggested that a local authority may rely upon successful Care Inspectorate registration, within the last 12 months, as suitable evidence of business sustainability during the funded provider’s ‘probationary status period’. When the probationary funded status ends, without incident or withdrawal, the approach for existing settings will apply. However, a local authority may request further evidence for their own records and requirements, for example, continuity plans.

7.2 Buyout of Non-Funded Setting by a Funded Provider

49. Where an establishment is bought over by a funded provider, it may be expected that the provider applies for the new setting to offer the funded entitlement. The local authority application process should be applied and appropriate due diligence undertaken.

7.3 Buyout of Funded Setting by a Non-Funded Provider

50. The provider should not assume that a funded setting would automatically retain funded provider status.

51. Where a funded provider setting is bought by a business or person who does not have funded provider status, this may be dealt with through an assignation process (either as outlined in the application process or in the applicable terms and conditions of contract), where appropriate.

52. Alternatively, the provider would apply to become a funded provider at the next opportunity. The local authority application process should be applied and appropriate due diligence undertaken.

7.4 Buyout of Funded Setting by a Funded Provider

53. Where a funded setting is bought by a business or person who has funded provider status for another setting, this may be dealt with through a request to vary the provider’s current funded status award (either as outlined in the application process or in the applicable terms and conditions of contract), where appropriate.

54. Alternatively, the provider would apply to become a funded provider at the next opportunity. The local authority application process should be applied and appropriate due diligence undertaken.