Written Question · S6W-01883 · Session 6
What system is in place to compensate preschool and early years settings should they be unable to source milk at a price within the local s…
The question
To ask the Scottish Government what system is in place to compensate preschool and early years settings should they be unable to source milk at a price within the local serving rates specified in the new Milk and Healthy Snack Scheme from 1 August 2021.
The answer
The Scottish Government utilised a variety of data sources to derive Scottish Milk and Healthy Snack Scheme Local Serving Rates (LSR) using a formula agreed with COSLA Leaders in line with standard practice for allocation of funds by the Scottish Government to local government. The basis of our analysis suggests the LSR is sufficient to allow settings to purchase milk and healthy snacks in Year 1 of the Scheme sustainably and at a fair price.
While the new Scheme permits local authorities to determine payments, the local authorities have through COSLA agreed to pay settings at the Local Serving Rates for Year 1 and these LSR are now set out in the Regulations governing the Scheme. The Scottish Government recognises that this is a transitional year. We will gather the evidence from Year 1, including via an implementation group consisting of key partners, to ensure that LSR are sufficient for Year 2 and beyond. This may still be subject to timescales to be agreed with COSLA however, using learning from Year 1, we will continue to work with local government and key stakeholders to ensure that more children will have access to milk and healthy snacks as a consequence of this policy.
When developing the LSR, we included data from Scotland Excel (Scotland’s local authority procurement body) on the local variations in milk supply contracts currently in place across all 32 local authorities and assessed claims to the UK Nursery Milk Scheme, which provided historical data on the value of claims from different types of childcare setting and providers. The data collected on milk costs, combined with data on the size of the eligible population and number of children registered in childcare settings, enabled the Scottish Government to calculate the anticipated maximum quantum required for the Scheme.
In addition to making use of the best available data, an uplift was applied to the funding quantum to take account of uncertainties relating to the change in operation of the scheme, e.g. potential price increases, additional costs that might be incurred by the inclusion of non-dairy alternatives to milk, and potential changes in population.
While the new Scheme permits local authorities to determine payments, the local authorities have through COSLA agreed to pay settings at the Local Serving Rates for Year 1 and these LSR are now set out in the Regulations governing the Scheme. The Scottish Government recognises that this is a transitional year. We will gather the evidence from Year 1, including via an implementation group consisting of key partners, to ensure that LSR are sufficient for Year 2 and beyond. This may still be subject to timescales to be agreed with COSLA however, using learning from Year 1, we will continue to work with local government and key stakeholders to ensure that more children will have access to milk and healthy snacks as a consequence of this policy.
When developing the LSR, we included data from Scotland Excel (Scotland’s local authority procurement body) on the local variations in milk supply contracts currently in place across all 32 local authorities and assessed claims to the UK Nursery Milk Scheme, which provided historical data on the value of claims from different types of childcare setting and providers. The data collected on milk costs, combined with data on the size of the eligible population and number of children registered in childcare settings, enabled the Scottish Government to calculate the anticipated maximum quantum required for the Scheme.
In addition to making use of the best available data, an uplift was applied to the funding quantum to take account of uncertainties relating to the change in operation of the scheme, e.g. potential price increases, additional costs that might be incurred by the inclusion of non-dairy alternatives to milk, and potential changes in population.
In the Official Report
No contribution in the Official Report cites S6W-01883 by reference.