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GUIDANCE ON COMMISSIONING PRE-SCHOOL EDUCATION PARTNERS

July 2003

Scottish Executive Education Department

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GUIDANCE ON COMMISSIONING PRE-SCHOOL EDUCATION PARTNERS

The Need for Guidance

The Audit Scotland publication 'A Good Start', issued in March 2001, reported on the arrangements that were in place for commissioning pre-school education for three-and four-year-old children. The report recognised that a number of arrangements had been put in place and a range of practices and contracts had developed between local authorities and partner providers. Ministers know there will always be differences between the 32 authorities. However, they are keen to encourage consistent practice arrangements that will reduce the number of difficult conditions partners will face.

The guidance in this document is not meant to replace the recommendations in 'A Good Start', but it does build on them in recognition of the changes that have taken place. While we recognise that every authority faces different circumstances, there are enough similarities for general guidance to be useful.

This guidance aims to promote greater consistency when contracting and funding pre-school partners across Scotland. The main aim is to provide a clear model that meets the needs, and explains the responsibilities, of both local authorities and their partner providers.

The Development of the Guidance

Following recommendations in the Action Team's report on 'Better Integrated Children's Services For Scotland's Children' a 'voluntary-statutory' working group was set up to consider the partnership arrangements between the voluntary and statutory sectors. The Scottish Executive recognised that many of the issues faced in that arrangement were similar to those faced when working with the private and voluntary pre-school sector. So, it was decided that the working group developing the commissioning guidance would work as a subgroup of the 'voluntary-statutory' group.

Aim

The subgroup had the following aim.

' To examine current practice in commissioning pre-school education partners; and to develop consistent approaches to be recommended across Scotland, which are transparent and meet the needs of children, parents, partners and local authorities.'

The subgroup met four times to consider a range of issues surrounding the practice of commissioning partners, along with a number of papers presented by members. This guidance provides the main recommendations of the group and outlines the main reasons behind them. The members of the subgroup.

Pre-School Education

The Programme for Government, published in January 2001, set a target to provide a free pre-school education place for all three-and four-year-old children, whose parents want one, by 2002. From April 2002, the Standards in Scotland's Schools etc Act 2000 placed a new duty on authorities to secure pre-school education for all eligible children. To recognise this new duty, pre-school education resources of 137 million were transferred within the GAE settlement from 2002-2003. Local authorities are now free to use a range of resources ( including nursery education, Sure Start and Childcare Strategy funds) to fund the inter-linked services for children.

Linked services will provide more support for all parents, including those in work, education or training. Parents must be able to access pre-school education in a package that will meet their and their children's needs.

Local authorities and their partners achieved the target for pre-school education by April 2002. The latest participation figures ( based on GRO population estimates for the academic year 2002-2003) show 99% of four-year-olds and 88% of three-year-olds receive pre-school education. As the scheme is voluntary, it is unlikely that we will ever achieve 100% attendance. So, Ministers consider this to represent full involvement.

Developing and providing pre-school education places cannot be viewed on its own. Early education and care are closely linked and many parents and their children use their pre-school education providers to meet their childcare needs as well.

Under the Regulation of Care (Scotland) Act 2001, the Care Commission takes account of the National Care Standards for Early Education and Childcare up to the age of 16 when assessing the quality of each service in the sector.

When the daycare of children is provided in the form of educational activities, Her Majesty's Inspectorate of Education works with the Care Commission to regulate and inspect the service. Their joint aim is to improve the quality of both care and education. Over time, the information provided by this assessment will allow parents to make the important decisions about their child's early education and care. The Care Commission will inspect each service every year, which will give an independent account of the quality across all parts of the sector.

Partnerships

There can be a number of organisations involved in delivering pre-school education. Partners will include local authorities, private and voluntary centres, umbrella bodies (such as the Highland Pre-school Association, the Scottish Independent Nurseries Association and the Scottish
Pre-school Play Association) and the Scottish Executive.

Local authorities, along with their partner providers, have been very successful in meeting the Government's targets in relation to pre-school education. The fact that pre-school education is now available for all eligible three and four-year-olds across Scotland clearly shows the success that partnership arrangements can achieve.

The Childcare Partnerships, set up in 1998, can help authorities plan new services, identify gaps in services or offer advice to avoid duplication of provision.

Pre-school education has expanded quickly and partnership arrangements have been made in a short time. As the Government's target for pre-school education has been reached, now is a good time to consider the best way to move forward. Ministers are committed to maintaining the level and quality of education for pre-school children. They see the benefit of a mixed economy in the pre-school sector. Ministers also believe the sector, made up of public, private and voluntary providers, should be seen as one which makes a distinctive contribution to children's experience, knowledge and skills.

The guidance promotes open and accountable partnership agreements that should be encouraged throughout the sector. This guidance should help local authorities, partner providers and parents to understand the contracting processes, their responsibilities and their entitlements. The guidance should encourage all statutory, private and voluntary pre-school providers to work together as a single pre-school sector. Ministers are keen that the pre-school sector can adopt a wider approach for children and their families, to provide a service that fully combines pre-school education with childcare.

Authorities should consider publishing a joint policy statement outlining the good practice expected of everyone involved in the partnership.

Communications and flexibility

The working group recognised that many of the elements involved in commissioning

pre-school education are connected. It also recognised that a rigid set of guidelines would be difficult, if not impossible, to produce. Improved communications and increased flexibility between local authorities and potential partners are important aspects of effective commissioning practice that will allow local differences to be taken into account.

The guidance covers the following.

• Identifying demand
• Contracts
• Payments and support
• Information to parents
• Main recommendations
• Members of the working group

IDENTIFYING DEMAND

Background

Since 1 April 2002, under the Standards in Scotland's Schools etc Act 2000, local authorities have the duty to secure a funded part-time pre-school education place for all three-and four-year old children whose parents want one. A part-time place is at least 412 and a half hours of funded pre-school education.

However, authorities have been involved in providing and commissioning pre-school places for a number of years, and Audit Scotland reported on their involvement in 2001. Their report, 'A Good Start', recognised that councils have to consider the most appropriate way to match services with demand. This, of course, needs long-term planning processes so services can be available when children become eligible.

Parents are entitled to expect to be offered a funded part-time pre-school education place for their children from the term following their child's third birthday. Parents can also expect that their preferences for a pre-school setting will be taken into account as far as practical.

Ministers are keen to encourage the mixed economy that has developed to meet the different needs of children and their parents. The expansion of the sector has to be managed so that any increase in demand can be met, while at the same time avoiding overprovision.

There is a higher demand for places in the summer term. Authorities must be flexible in commissioning enough places for the third term which will help the financial position of partners over the full year.

Consultation

The Childcare Partnerships have an important role to play in each authority. Childcare Partnerships have an overall responsibility for the childcare sector and help secure enough pre-school education places.

We have seen that involving all parts of the sector, including parents, in the decision-making process reduces conflict or competition. Councils should consider setting up an

early-years working group as a subgroup of the Childcare Partnership to oversee the development of, and make recommendations on, pre-school education.

To make best use of this group, it must have representatives from the full sector - local authorities, private and voluntary providers, and parents. This will allow a balanced view to be taken on what resources are available, predicted demand and options to develop a sector that meets the area's pre-school educational needs. Childcare and pre-school education are related services and face similar issues. We need to make full use of the expertise and experience available within the Childcare Partnerships.

Councils have to be imaginative and flexible in how they assess demand and provide opportunities for registrations for pre-school education.

Registration

Pre-school services for children cannot be 'switched on and off' quickly. Long-term planning is needed if appropriate facilities are to be made available. That is why we have to encourage parents to register their children as early as possible for pre-school education.

Local authorities must identify suitable opportunities to remind parents of their

pre-school education entitlements at appropriate times. Some parents will not know what they are entitled to while others will be quite clear what they want. Councils have to tailor their services to deal with the full range of parental needs and be prepared to deal with individual needs and expectations.

The lifestyle and working patterns of modern life are developing and changing. Councils need to be as flexible as possible in creating opportunities for parents to register their children for pre-school education when it is convenient for them. Parents should be able to register on-line, at regular registration days and evenings in convenient places ( such as in libraries or local shops) or at the

pre-school education centres themselves.

Cross-border services

Authorities will also have to consider the services needed for children who travel from their home authority to another authority area. The expansion of pre-school education and the changing life and work patterns mean that more parents are using services outwith their home authority.

Publicity

Publicity can take many forms and the most successful campaigns get the timing right. But when is the best time to present information on pre-school education to parents? Should it be a stand-alone process or linked to related services? Should it be high-profile intensive advertising or a

long-term programme of advertising? There are no definite answers to any of these questions. However, councils must be open to consider anything that can help in the long run.

It is important that any publicity relating to centres offering pre-school education includes details in a balanced way.

All authorities have their own Childcare Information Services ( ChIS), under their Childcare Partnership, to gather and provide information on a range of services that are available for children. This means that councils already have a planning tool to identify gaps in the service provided.

The working group are aware of publicity campaigns for council services involving local supermarkets and shops ( such as monthly information kiosks or posters and printing the ChIS phone number on shopping bags). Councils have to be imaginative in getting the information to them.

Delivering pre-school education is a joint effort between councils and their partners. The private and voluntary providers in the sector must also be fully involved in the admissions process. A lot of parental advice and information is passed on by word of mouth so it makes sense that parents are also involved.

A number of agencies and professionals are involved with children from birth, for example, doctors and health visitors. Councils must work with these agencies to publicise their services. Health visitors visit all children in the early months of their life and give parents information on the range of services that are available for children.

Obviously, not all services will be of interest to each parent, and a lot will depend on the age of their children. However, the information leaflet could be designed to show what services are available for children as they grow up. It could also have a 'forward look' section to help parents plan for the coming year ( with information on vaccinations that are due, pre-school education, childcare and so on).

CONTRACTS

Background

Since the pre-school education service has started to expand, one of the most common subjects of the letters we receive has been partnership contracts. There appears to be some misunderstanding in a number of areas. These areas include basic things such as scheduled payment dates, what providers of central services have to pay for and what they can expect to be available as part of their contract.

An unclear contract can make it difficult for private and voluntary providers to make the best decision about the service they provide. If the financial position is unclear, it can be difficult to work out income and spending.

Partners need to understand and agree where their responsibilities start and end. Contracts should clearly set out the responsibilities of both sides.

In many cases, the authority and the centres will have complementary responsibilities. These could be emphasised by using imaginative layouts to clearly show what each side of the partnership is responsible for.

There are some common elements that should be included in pre-school education contracts. This would make it easier for partners that work in a number of authority areas. It would also be helpful for parents who move to know that similar conditions apply to pre-school education centres across the country.

Standard parts of the contract

Contracts have to be clear about what each side of the partnership is responsible for. We have identified a list of things that should be included in each pre-school education contract. While some of them may appear to be obvious, there are some that are not easily found in all current contracts.

All contracts need to cover the following issues.

• Rate of payment

The provider must be clear about how much they will be paid for each full-time child. They also need to be clear on how payments will be affected if the child does not take up their full pre-school education entitlement.

• Date of payment

Cash flow, especially at the beginning of each term, can be a problem for providers. Payment schedules must take this into account.

• Flexible services

Not all parents will want to use the full entitlement to 412 and a half hours of funded pre-school education over five-day periods. Authorities and partners need to be imaginative in meeting and funding other patterns of attendance.

• Funding when a child transfers

This can cause problems for parents and providers. Does pre-school education funding follow the child? Will the new centre pay for the rest of the term? This situation must be considered and clearly explained to providers and parents.

• Length of contracts

Local authorities are told about their Grant Aided Expenditure for three-year periods. Doing this for pre-school education providers would improve sustainability in the pre-school education sector.

Three-year contracts need to be able to vary the number of places commissioned as necessary.

• Ending a contract

Providers must be clear about the minimum period of notice to be given by either side of the partnership.

• Any restriction on the number of places commissioned with any centre

Limiting the number of places commissioned in any centre can be restrictive on parents' wishes. They should only be used after carefully considering the needs of children, parents and partner providers.

• Services available

Details of what support services are included as part of the contract and what is available at an extra cost (and at what cost).

• Services for children with special needs

Details of what support services are included as part of the contract and what is available at an extra cost (and at what cost).

• Complaint procedure

Providers must have a clear procedure in place for parents. Providers have to be made aware of their authority's complaint process.

• Training available

Staff within the sector would benefit from joint training opportunities. To allow joint training sessions to be arranged, the timing and cost to providers for covering for staff while they go to training sessions must be considered. It must be clear if training opportunities form part of the contract.

• Keeping records

Providers must be given clear instructions of the agreed dates and the format for the audit to support payment claims.

• Curriculum and quality

Providers must be told about, and use, the recommended educational framework (Child at the Centre, Curriculum Framework for Children 3 to 5 and so on).

• Information available to parents

All providers must be told what information they must display (such as admissions policy, Care Commission registration certificate, latest inspection reports, complaint procedure, progress reports, minimum period of notice to remove a child and so on).

• Insurance

The contract must clearly give the agreed minimum level of insurance to be in place depending on the level of risk, the number of children and the facilities available.

• Named contact and minimum period for response

Appropriate personnel from the authority and centres must sign the contract. However, they may not be the appropriate people to be involved in all communications. Having a named contact would also save lots of copies of letters being sent to local authorities, for example.

• Financial position

Before entering into a contract with providers, authorities should take a balanced view of all the risks, including the provider's financial position. This may simply involve a review of the provider's business plan or a bank reference (or both).

With the range of partners involved, contracts must be clear on who is responsible for what. We recommend that contracts should be written in plain English and cleared by Plain English Campaign.

It is important for agreements or contracts to be reviewed regularly to make sure that they take account of changing circumstances.

PAYMENTS AND SUPPORT

Background

Each authority will meet their duty of securing pre-school education in a way that takes account of local circumstances. It is unlikely that any two authorities will face exactly the same issues or deal with them in the same way.

For example, before the pre-school grant formed part of the local authorities, GAE allocation, authorities were free to 'top-slice' the level of pre-school education grant we awarded. This 'top-slice' was used in a number of ways to provide support to the sector. Some authorities paid the full level of grant to their partners, some paid the advisory floor level and the rest passed on the grant somewhere between the two.

We expect that the level of support available in each authority will follow a similar pattern, although a full 'audit' of support services has not been carried out.

Advisory floor

Since the financial year 2002-2003, resources for pre-school education have formed part of the local government settlement. Except for the minimum payment (advisory floor), authorities are free to make decisions about payments and support without consulting us.

The working group on the reintegration of the grant recommended that we publish an advisory floor rate for commissioned places for 2002-2003 and 2003-2004. To maintain financial stability within the sector, Ministers have agreed that they will continue to publish an advisory floor every year.

Partner providers must be made fully aware of the level of payments that they can claim for the service they offer. If the council offers a range of payments depending on the range of services offered, partners must be told which category they fall into and why. The level and date of payment must form part of the final contract agreed between the two partners.

If there is a range of payment options available, councils must make it clear how they decide the level of payment. They must also be clear what support is available to centres for improvement. Of course, the level of support provided by any local authority will affect the level of payment for providing pre-school education.

When we issued pre-school education grants, we made payments six times a year. Initial grants were based on predicted figures provided by each authority. Half of the provisional grant was issued at the start of the term, and the balance was adjusted in line with the actual claim later in the term.

This allowed authorities to have flexibility in how they used the grant. In line with Audit Scotland's recommendation in 'A Good Start', authorities must consider similar payment arrangements with their pre-school education partners.

To provide as much choice as possible for parents and to reduce the potential for accusations of unfair competition, local authorities must consider equal treatment regarding payments for centres that meet the same quality conditions across the sector.

For example, the entitlement to pre-school education is from the term following a child's third birthday. We know that a number of authorities have extended the funded services available to the day after a child's third birthday, but this is only at centres run by the authority.

Centres have to take account of their responsibilities in relation to pension and redundancy payments. Centres must make sure they have enough resources to meet these responsibilities. Authorities must also take account of the need for reserves when considering arrangements for extra funding.

Flexibility is very important when parents and their children decide to change the pre-school centre they use. This can be for a variety of reasons and parents must not be penalised. Pre-school education must be free in the same way as if a child moves between primary or secondary schools.

Ideally, the funding would follow the child but that could make administrative arrangements complicated. Children must be able to switch centres without their parents being asked to pay the pre-school education costs at the new centre.

However, it is possible to reach an agreement with partners in these circumstances.

We recognise that there will be a certain amount of 'swings and roundabouts' in any arrangement. An agreement reached in one authority will not suit every partnership. Imaginative arrangements that meet the needs of the sector can only be introduced after full consultation and discussion with the pre-school partners. However, whatever is agreed, parents and partner providers must be aware of 'mid-term transfer' payment arrangements.

Support

Pre-school centres may need some extra support at some time. New support needs will crop up from time to time, such as the need for all staff to be checked by Disclosure Scotland. Local authorities should examine the possibility of providers flexible support and advice to partners, as necessary. Of course, support can take many forms, and different types need to be available for different families. Parents, potential pre-school education partners, current partners and children all need different types of support. Councils must be willing to develop and publicise the support that is available so parents and their children have easy access to the appropriate service.

The costs that centres have to pay for training or going to meetings outwith normal working hours can be a significant drain on the limited resources that are available. Authorities should consider giving each centre a contribution to these costs. This sort of help could allow meetings and training events to reflect the mix within the sector more accurately.

The support available for pre-school education must be consistent - no matter what part of the sector the parent, child or centre is linked to. The main issue when considering support levels must be providing education for children that is of a standard and quality that will help the child to fully develop.

This does not mean that the services must be available in every centre. However, the services must be available to everyone and information on what is available and where must be included in the information that is available to parents and providers.

The following is a list of areas of support that authorities might consider developing and making available to users of pre-school services and those working in the pre-school education sector.

(It is not a complete list.)

INFORMATION TO PARENTS

Background

Councils have to predict the likely level of demand for funded pre-school education places. This can be difficult as parents do not always tell the council about their pre-school education needs in time. To make best use of the facilities that are available and to make planning easier, parents should be encouraged to make their pre-school education decisions as early as possible in their child's life.

Parents must be made aware of, and have access to, information about pre-school education and the centres that provide it as soon as possible. The Government has a commitment to provide childcare and pre-school education information as widely as possible. As part of meeting that commitment, a joint project between the Scottish Executive and Department for Education and Skills supports the ChildcareLink website (www.childcarelink.gov.uk). Information from all Childcare Information Services across the country can be found on this website.

Potential outlets for information

Authorities must consider the most appropriate way to market the entitlement to pre-school education. Using current databases for different purposes could save effort and money. Councils should consider including cross-references to complementary services or combined information to highlight the links to services that are available at different stages in a child's life.

With the number and range of potential partners involved, all correspondence, discussions and information leaflets must avoid technical jargon as much as possible. For example, when drafting a leaflet or a letter, it is very easy to think that everyone knows what you mean when using acronyms.

Communication between those involved in the sector can take many forms. Everybody has to make sure they use suitable language so their views are clear. This does not mean that an agreement will be reached in every situation - but it does mean that discussions take place in an appropriate language and timescale for the situation.

The following is a list of opportunities to remind parents of their entitlements and responsibilities. When advertising pre-school education centres, councils must make sure that all centres are given equal treatment to avoid promoting one part of the sector over any other.

Each form of advertising must include an enquiry number for parents to phone if they are having difficulties finding the information they need.

Councils should assess the information sources to find out which is the most effective. Not all sources of information will suit every authority, but using a range of sources should meet the needs of most parents.

MAIN RECOMMENDATIONS

• Set up an early-years working group to offer advice and make recommendations on all aspects of childcare and pre-school education.

We hope that the group will include representatives from all parts of the sector to offer advice on all early-years issues. The effective use of Childcare Partnerships in each authority will help maintain communication between the inter-linked services for children.

• Expand consultation opportunities.

Regular consultation within the sector helps clarify and develop policies relating to pre-school education and childcare services.

• Provide easy-to-understand contracts.

Contracts should be written in plain English, and outline responsibilities and expectations on both sides of the partnership. They should include details of the quality systems that are in place to decide the level of payment, the payment details and the support that is available for improvement.

• Agree realistic payment arrangements.

Payment arrangements need to be flexible to avoid cash-flow problems as much as possible.

• Have three-year funding agreements.

Local authorities receive notice of decisions related to the Scottish Budget based on three-year funding levels. Providing similar three-year agreements for pre-school partners would help centres' longer-term planning processes.

• Communicate clearly.

It is essential that partners understand what is required and expected of them. Councils should follow guidance from Plain English Campaign when preparing documents.

• Provide regular feedback.

Partners must provide regular feedback and exchange their views. Successful partnerships need an open and honest environment to succeed.

• Expand joint training opportunities.

All staff within the sector would benefit from joint training arrangements. This would make sure that they all achieve similar standards and break down the barriers that can be created between different parts of the sector.

• Have flexible registration arrangements.

It would be helpful to provide a range of times and places for parents to register their children on the internet at pre-school centres and during open days.

• Work with health services.

Information for parents can form part of the information that is available from health services and health visitors. Councils must use opportunities to offer pre-school information through different agencies that are involved with children.

• Publicity

All publicity material for the pre-school sector must be written to promote the range of statutory, private and voluntary facilities that are available equally. Full details of the support and facilities for parents and their children must be widely available.

• Information

Information must be widely available, include references to other information and be consistent with related services for children.

WORKING GROUP MEMBERS

GLOSSARY

Commissioning ( link)

Where local authorities enter into partnership with private and voluntary providers to contract funded pre-school places for three and four-year-olds.

GAE ( link)

Grant Aided Expenditure is the amount of money set aside for local authorities by central government.

GRO ( link)

The General Register Office for Scotland is the department of the devolved Scottish Administration that is responsible for registering births, marriages, deaths, divorces and adoptions in Scotland. They are also responsible for carrying out regular censuses of Scotland's population.

Duplication of provision ( link)

Childcare Partnerships can help local authorities plan services in pre-school centres that meet the different needs of most of the children and parents, including wraparound care, special needs and so on, without overproviding certain services or places in one area.

Overprovision ( link)

Providing more pre-school education places than there is the demand for can result in competitiveness within the sector that may affect the sustainability of some providers.

Sustainability ( link)

Giving partner providers a three-year contract allows them to predict their future financial position which will help them to plan their services more clearly. Short-term contracts can make providers vulnerable to cash-flow problems.

Top slice ( link)

Before the pre-school education grant was reintegrated, authorities were awarded a grant for each pre-school education place. The authorities had to pay partners a minimum level (see advisory floor level). Any grant that is left after places have been commissioned will be available to the local authority to improve pre-school provision in the private and voluntary sector.

Advisory floor level ( link)

The lowest amount that the Scottish Executive Ministers expect that an authority can commission a fully loaded part-time pre-school education place from the partner centre. The authorities are told the advisory floor level each year.

© Crown copyright 2003
ISBN 0 7559 3585 3
Published by
Scottish Executive
St Andrew's House
Edinburgh

Further copies are available from
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The model contract referred to in the above document can be found at http://www.scotland.gov.uk/library5/education/pepa-00.asp