The move will create a two-tier system, whereby nannies recruited through agencies are regulated and nannies recruited directly by parents are not.
Parents who recruit nannies directly will not therefore be able to claim childcare tax credit.
Any childcare agencies which were regulated by local authorities under the old system automatically passed over to the Care Commission in April 2002, when it took over responsibility for all childcare services regulated by local authorities. Nanny agencies have previously been unregulated both north and south of the border.
Under the proposals, published by the Scottish Executive at the end of December, childcare agencies will be considered to be registered with the Care Commission from 1 April and will have until 30 September to submit a formal application for registration. If they have not applied for registration by the end of September and continue to operate, they will be committing an offence. The Care Commission will have until 31 March 2004 to consider and make a decision on the applications received.
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