CHILDCARE minister Maree Todd insists the flagship policy to almost double provision for young children remains “on track” despite a watchdog warning of “significant risks” to the plan.

The pledge to boost paid-for early learning and childcare places for youngsters aged two to four is a key Scottish Government commitment.

The “transformational” plan involves providing 1140 hours of care a year for three and four-year-olds, marking a major increase on the 600 hours currently provided. It also includes additional provision for eligible two-year-olds and aims to improve educational outcomes and help parents back into the workforce.

But a report prepared for the Auditor General and Accounts Commission highlights “significant risks” to delivery of the policy by its 2020 target.

The paper, released today, reveals a £160 million gap between what the Scottish Government expects the move to cost – £840m a year – and the £1 billion councils say they need to deliver it. Projected staff numbers also deliver, with Holyrood anticipating the recruitment of another 6000-8000 workers and councils forecasting the need for 12,000.

It also found ministers failed to set ways in which to assess the plan for value for money and agreed to it without evidence that it will deliver its desired outcomes or exploring alternative ways to meet the targets.

It also states: “It will be difficult to increase the infrastructure and workforce to the levels required, in the limited time available.

“The Scottish Government should have started detailed planning with councils earlier, given the scale of the changes required.”

Tory education spokeswoman Liz Smith called the report “damning” and Labour’s Iain Gray said there is a “black hole” in a “cornerstone” promise to families.

But citing work with councils body Cosla, Todd said: “It is not unusual, at this point in the life of a major project, for people to have different ideas as to the final cost. What is not in doubt is that the Scottish Government has pledged to fully fund this policy.

“We are working with councils to help them develop their expansion plans and have recently reached agreement with Cosla on the process of arriving at the multi-year funding needed. We have already increased capacity in early years courses in colleges and universities and are investing in the significant expansion of the workforce needed to deliver the expansion.”

The report recommends that the Department for Work and Pensions and HM Revenue and Customs provide information to councils on eligible two-year-olds to help them target families who may otherwise miss out on a place. The current uptake is “much lower” than it could be and the report said many families miss out because they do not know a funded space is available to them.

“Urgent” action on workforce planning is also recommended and the report says the Scottish Government should ensure major policy changes are “backed up by options appraisal, supported by economic modelling” in the future.

Auditor General Caroline Gardner said: “Focusing on the early years has the potential to make a real difference to young peoples’ lives but the Scottish Government was not clear enough about what the expansion of funded hours in 2014 was expected to achieve.”

Accounts Commission chair Graham Sharp added: “The scale of change needed over the next two years is considerable and there are significant risks that councils will be unable to deliver that change in the time available. There is now an urgent need for plans addressing increases in the childcare workforce and changes to premises to be finalised and put in place.”