A new childcare support scheme for Armed Forces families in Scotland will be funded with additional government money rather than drawn from within the existing defence budget, the Defence Secretary has confirmed.

The scheme, announced during a visit to Dreghorn Barracks in Edinburgh, will provide reimbursement for early years childcare costs and is expected to save eligible families up to £6,000 per child each year. It will be rolled out from September 2026 and aims to align support in Scotland with that already available to forces families in England.

Speaking to the UK Defence Journal, John Healey said the policy was intended to address what he described as a gap in provision left by the current system in Scotland. “This is new money for a new scheme that fills the gap and means that we can match in Scotland for forces families… the childcare cost support in England,” he said.

He argued that service families were being disproportionately affected by existing arrangements, describing childcare costs without support as “punitive” and, in some cases, “unworkable”. One soldier, he said, had considered requesting a move back to England because their family could not afford childcare costs in Scotland.

I don’t want them paying a penalty for serving in Scotland,” Healey said, adding that while he could not change provision for all families in Scotland, he could act for those in military service.

The Ministry of Defence said the scheme will apply to eligible working families with children aged from nine months to three years in Scotland and Wales, and up to four years in Northern Ireland. It will be delivered through the existing Early Years childcare reimbursement mechanism, with payments covering the difference between devolved provision and the English model.

Under the scheme, families could receive support equivalent to up to 30 hours of childcare per week, with the MOD estimating average savings of more than £6,000 per child annually.

The MOD describe the policy as a “transformative” measure aimed at improving support for service families, with childcare costs frequently cited as a factor affecting retention and morale. The announcement forms part of a wider package of personnel-focused reforms, including housing changes and recent pay increases.

Healey described the move in operational terms, linking family support directly to military effectiveness and workforce stability.

Non-pay factors such as childcare, housing and spousal employment are increasingly being treated as central to recruitment and retention, particularly as operational demands on personnel continue to rise. Further details on implementation and eligibility are expected ahead of the scheme’s launch in 2026.

George Allison
George Allison is the founder and editor of the UK Defence Journal. He holds a degree in Cyber Security from Glasgow Caledonian University and specialises in naval and cyber security topics. George has appeared on national radio and television to provide commentary on defence and security issues. Twitter: @geoallison

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