A Scottish Council has announced plans to shift away from funding early years places in private nurseries in favour of utilising its own buildings.

Falkirk Council plans to save £580,000 in 2025/26 by reducing the number of places it funds for three and four year olds in private provision.

Instead it plans to offer the places in council-run settings instead, which only operate between 9am-3pm during term time.

The move has drawn criticism from operators fearing it will threaten the sustainability of the sector in the long term.

National Day Nurseries Association (NDNA) Scotland said the council has asked Falkirk’s 13 private nurseries – a fourteenth is set to close in April – to each remove between 10 and 15 funded places.

This cost-saving measure that Falkirk Council has come up with is an appalling plan which would upset the lives of 150 families and many more going forward

The council said the level of reduction of places will vary across private nursery providers and it will work with providers individually to support them to manage their approach.

A council spokesperson said no child who is currently in a funded early learning and childcare place at a local private provider nursery would be required to move settings.

NDNA Scotland is opposing the proposals on the grounds they remove parental choice; seriously threaten the sustainability of existing nursery provision for current and future families; and could remove nursery provision for eligible two year olds if nurseries are unable to remain sustainable.

NDNA chief executive, Purnima Tanuku, said: “This cost-saving measure that Falkirk Council has come up with is an appalling plan which would upset the lives of 150 families and many more going forward.

“It would also seriously threaten the sustainability of the 13 nurseries left in the district.

“Private and voluntary (PVI) nurseries are vital for working parents because they deliver high-quality education and care all year round.

“Most open around 8am and close around 6pm. Council nurseries do not offer this flexibility and so could lead to additional care having to be put in place so parents can continue working.

“Moving children disrupts their continuity of care, but also these nurseries would not be able to guarantee future funded places, so parents are likely to take their children elsewhere.

“These nurseries are unlikely to survive for long if the council persists with this misguided plan which would remove flexibility in the district.

“It’s unlikely there would be many, if any, available places for under twos if nurseries were forced to close.”

Susan Hill, owner of Wellside Kindergarten, said the setting had delivered funded places for 25 years as a partner provider to the council. She added: “We can scarcely believe that the council could hold us in such contempt and treat us in this way.

Moving children disrupts their continuity of care, but also these nurseries would not be able to guarantee future funded places, so parents are likely to take their children elsewhere

“Working families need the flexible provision we deliver. How are we supposed to decide which children from which families would need to take up their hours elsewhere? What if they are moved to a council-run nursery ten miles away? Or if they have to move one child, but keep a younger sibling in our nursery because there are no council places for under twos?”

And Stephen Kerr, MSP for Central Scotland, called the proposal ‘a direct attack on parental choice’.

He added: “The PVI sector delivers 15% of the early learning and childcare provision in Falkirk, yet receives just 7.3% of the council’s ELC budget.

“It is the most-cost-effective way to provide high-quality nursery education, and yet it is being undermined.

“This decision smacks of institutional bias — Falkirk Council both funds PVI nurseries and runs its own competing provision, making this an unfair playing field where private and voluntary nurseries are at risk of being squeezed out.”

A Falkirk Council spokesperson said: “Falkirk Council remains committed to ensuring all eligible children can access their funded entitlement, with no reduction in the overall number of funded places.

This decision smacks of institutional bias — Falkirk Council both funds PVI nurseries and runs its own competing provision, making this an unfair playing field where private and voluntary nurseries are at risk of being squeezed out

“No child who currently receives funded early learning and childcare will be required to move.

“We recognise the value of PVI providers and have carefully considered demand to ensure families continue to have flexible, high-quality options, including within the PVI sector.

“No final decision has been made and this will be reviewed as part of the budget process.”