To ask the Scottish Government, further to the answer to question S6W-36873 by Neil Gray on 1 May 2025, whether it will provide an update on the programme of work being undertaken to understand and respond to the current financial viability pressures in the social care sector and the impact that this change will have, including any contingency plans that it has in place.
The Scottish Government remain deeply concerned about the current financial pressures facing the social care sector. We fully recognise the anxiety and growing concerns within the social care sector in light of the increasing financial viability pressures.
These pressures have been caused by recent policy decisions made by the UK Government, including the rise in employer National Insurance Contributions, increases in salary threshold levels and adjustments to the social care visa system, all of which have direct and significant implications for the sector’s workforce and financial sustainability.
The Scottish Government has been pressing the UK Government at every opportunity to reverse these decisions, which are potentially catastrophic for the social care sector in Scotland. Despite the lack of engagement from the UK Government, Scottish Government officials have undertaken a significant programme of work to consider how to respond to the current financial viability pressures in the sector, and to understand the impact that these challenges will have. The Scottish Government initially established the eNICS Working Group in February 2025, which has since developed into the Financial Viability Response Group (FVRG).
The FVRG includes representatives from COSLA, from Health and Social Care Partnerships, SOLACE, Scottish Care, CCPS and the SSSC and it meets weekly, subject to progress.
This includes ongoing engagement with local leaders through the Collaborative Response and Assurance Group (CRAG), alongside regular monthly roundtable discussions involving Scottish Ministers, COSLA, and other key partners. In addition, we are continuing to evaluate both the immediate and longer-term impacts of these changes on care providers, service delivery, and the social care workforce.
Our shared goal is to identify, understand and manage the immediate risks effectively, while also laying the groundwork for a more resilient and sustainable social care system in Scotland. This will be an ongoing process with a number of options under consideration, and we value the collaboration and insight of all stakeholders as we navigate these complex challenges together.
While we will continue to provide as much support as possible to the sector, we are also confident in the ability of our local partners to ensure that appropriate contingency planning is being undertaken effectively and to respond to both national and local level pressures.
Local Authorities, Integration Authorities, and NHS Boards each play a key role in developing contingency plans at the local level. As Category One Responders under the Civil Contingencies Act, they undertake significant and robust planning and preparation, in order to fully respond effectively to a range of scenarios.
