Fears have been voiced that a mass closure of cash starved private nurseries could be on the cards.
And that could leave around a third of three and four year olds without childcare options causing major upheaval for young families.
Treasure Island Nursery in Castle Douglas will close in July, with more than 80 kids affected, as it cannot continue at the hourly rate it currently receives from the local authority.
And while an increase is on the cards, Ros White from Dumfriesshire Private Nurseries Association feels that doesn’t go far enough.
She said: “The hourly rate we are receiving from the local authority is the lowest in mainland Scotland.
“The local authority is able to pay their staff between 30 and 40 per cent more than we can afford. Staff have moved who don’t really want to but if you’re getting 30 per cent more per hour that’s a lot of money to say no to.
“We want to pay the national living wage but it has gone up more than eight per cent since 2019 and the rate we receive has only gone up 2p.
“If they don’t get this sorted it won’t just be Treasure Island. Every nursery will be put at risk - and then what will the parents across Dumfries and Galloway do?
“It is really sad for Castle Douglas they are having to do that. It was a big nursery. The other nurseries are full to capacity so where are these children going to go?”
Treasure Island, which opened in 2011, currently has 82 children and the only other private nursery in the town is already at capacity for the new school year.
Owner Rosslyn Corrie said: “We are working hard to help parents and carers find alternative places for their children and I’m confident we will achieve that.
“Parents and carers have been wonderfully understanding and been very kind to us.
“The vast majority have decided to keep their children with us until July, which is very pleasing.
“I always wanted to do the best for the children and it is so nice to have that appreciated in this way.”
The Scottish Government early learning and childcare (ELC) scheme provides funding so that all three and four-year-olds, as well as some aged two, can have 1,140 hours of free childcare a year.
In Dumfries and Galloway, private, voluntary or independent (PVI) nurseries offering ELC currently receive £5.26 an hour per child from the council. A report for next week’s education committee meeting proposes raising that to £5.53.
But Mrs White believes there should be a bigger increase and claimed the sector looks after “36 per cent of the children but we only receive 22.5 per cent of the budget”.
However, a council spokeswoman said it currently pays 35 per cent of the ELC budget to the PVI sector.
She added: “Local authorities set a sustainable rate for the delivery of the funded hours in their area. In Dumfries and Galloway, this was informed by an independent financial review.
“The proposed uplift in hourly rates is in line with consumer price index at November, 2021. This increase would take effect from January 1, 2022, rather than the usual April 1 to offer early support to local providers.”
