Nurseries across Scotland have urged councils to make a decision on the hourly rates they will pay to early learning and childcare providers who are already facing financial uncertainty.

An FOI request from the National Day Nurseries Association (NDNA) revealed that nearly half of councils in Scotland (47%) have yet to make a decision on the hourly rates they pay providers.

Despite the significant increases in the cost of living, inflation and a new Real Living Wage rate, only one in five councils have plans in place to increase funding rates.

Where increases are planned, only two areas have plans to keep pace with the current rate of inflation of 9.4% – Angus (9.6%) and Stirling (12.9%).

Responses were gathered from 27 of the 32 local authorities across Scotland.

Fifteen councils said they had not made a decision about the rates that providers would receive from August, despite the academic year restarting next week.

Four councils confirmed that the hourly rates will be the same this August as they were last year, meaning nurseries face real-term cuts for funded places.

Purnima Tanuku, chief executive of NDNA Scotland, said: ‘Every year we work to help providers understand what the sustainable rate will be in their area but we have never seen a picture with this much uncertainty.

‘Early learning and childcare settings are facing a really challenging time supporting children with their post-pandemic recovery, workforce challenges, and the cost of delivery rising month on month.

‘The responses from councils show that the majority of nurseries and other providers are being expected to deliver the Government’s funded childcare offer without knowing how much they will be getting to do this.

‘With new children joining from next week but many having to wait until next month to know how each child will be funded, makes it impossible to plan ahead.

‘Local government officials cannot ignore that costs are spiralling for providers, so we need to see new rates that accurately reflect the financial strains settings are facing. In areas where rates have yet to be set we want to see councils reflect this.’