To ask the Scottish Government what assessment it has made of what the potential economic impact on families and communities would be if up to half of all care homes were to close.
We do not want to see the closure of good quality care homes and we understand the concern this causes for residents and their families, as well as for the wider community. Of course, when a home closes this can have a knock-on impact to the local economy, this particularly is felt in rural and remote areas of the country.
The economic impact on families and communities can go beyond traditional economic measures and can be greatly influenced by individual’s own circumstances and their reactions to any such changes.
We know that Scotland’s Adult Social Care sector is a significant contributor towards the Economy, adding multiple billions in Gross Value Added and employing tens-of-thousands of people. Whilst challenging to estimate we do note recent reports, commissioned by the Skills for Care and Development Alliance, which provides some indication of the potential scale of the economic value of social care in Scotland (Economic and social value of the UK adult social care sector: Scotland).
Additionally, I would highlight that although we have overall responsibility for health and social care policy in Scotland, the statutory responsibility for delivering, commissioning, providing appropriate social care capacity at a local level lies with local authorities, NHS boards and integrated Health and Social Care Partnerships. This includes the responsibility for these local authorities to develop contingency plans for each service they commission or provide, to have robust plans in place should a service close, as well as risk assessments to determine potential impacts on the local social care sector, wider system and economy.
While I recognise the seriousness of the risks faced by the social care sector, the projections from partners such as Scottish Care are the worst-case scenario. Investment by the Scottish Government into the social care sector has increased quite substantially, during a period in which pressures on public finances have been most acute
We do understand the anxiety and growing concerns within the care home and wider social care sectors regarding the current pressures on the financial viability of the sectors. Pressures that have been significantly added to by decisions taken by the UK Government, such as the increase in employers National Insurance Contributions, changes to the social care visa system and salary threshold levels.
Scottish Government officials are undertaking a programme of work to understand and respond to the current financial viability pressures in the sector and the impact that this change will have. That work remains ongoing and will continue to work with partners across social care to help manage the current risks and move towards a more sustainable future for social care within the country.
