Council to receive £385k for affordable childcare project
SHETLAND Islands Council (SIC) is set to receive almost £400,000 to extend an affordable childcare project for a second year.
The SIC will be given £385,169 by the Scottish Government to fund year two of its early adopter communities scheme in the North Isles and West Mainland.
That is less than half what the project received in 2025/26, when £833,000 was provided to Shetland.
However less than a quarter of that allocation was used by January 2026, and the SIC said that the funding for the next year was “broadly in line” with this year’s expenditure.
Shetland News reported last month that the early adopter project was set to continue for a second year.
Councillors were then told of this, and the latest grant offer for 2026/27, through a members’ briefing early this month.
The SIC said the funding would support the continuation of the childcare provision being developed through the project, and remained focused on delivering affordable, flexible childcare for families most at risk of poverty.
The focus for 2026/27 will be to sustain and continue childcare options offered this past year through the project, while updating the Scottish Government on the SIC’s findings.
The Early Adopter Communities scheme tests “place-based” approaches to childcare in the isles, with the West Side and North Isles highlighted as particular areas of concern locally.
Councillors were told last month that staffing had proven to be a “significant challenge” to the project.
Despite that, the Scottish Government said it was “content” that Shetland was “delivering in line with its grant”.
It added it was “grateful to the project team for exploring and testing innovative models of delivery”, while also “giving careful consideration to issues around operational sustainability in rural contexts”.
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Just £197,057 of the £833,000 budget was used on the project up until January 2026, councillors heard, with funding only confirmed until the end of March 2026 at that stage.
The council said the underspend reflected a “deliberate and cautious approach to expenditure”, and the need to “clearly evidence value for money”.
It said that underspends were also being confirmed by other areas in the early adopter project.
The council said that “significant progress” had been made across the West Mainland, including breakfast and after-school clubs at Happyhansel Primary School.
Other achievements included holiday provision at West Mainland Leisure Centre and Friday activity sessions in Sandness.
In the North Isles, the council said it had been able to recruit support workers to Mid Yell and Baltasound for early learning and childcare, as well as delivery of a summer holiday service in Yell and Unst.
But across both the West Side and North Isles, the council said it had been difficult to continue services due to the lack of staff.
“Staffing remains a significant challenge, particularly in rural areas where recruiting and retaining qualified staff is difficult,” it said.
“Staffing is central to widening any offer and increasing capacity within settings.”
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