A team of economists has concluded paying more to Scotland’s social care workforce would have a significant direct benefit on the national economy.

A new report ‘Scotland’s Care Sector: An Economic Driver’ sets out why the care sector’s £5.1bn contribution to the economy, and its direct and indirect support for 300,000 jobs, makes it an important contributor to the national purse – far from being a ‘burden’, as the sector is often portrayed.

The research by BiGGAR Economics was commissioned by ENABLE Scotland and coincides with a decision by the charity to increase pay rates across its own social care workforce from today.

The Director of BiGGAR Economics, Graeme Blackett, says the numbers show that pay increases for front-line social care work boosts the economy, by generating additional tax revenues, allowing people to spend more and fewer needing in work benefits:

“The care sector is often discussed in terms of the challenges of funding it.

“However, this study shows that we should recognise the significant contribution that the care sector makes to the Scottish economy and how it can be a driver of inclusive sustainable growth as the Scottish population ages, if wage levels reflected the value of care to society."

The economic impact analysis concludes the social care sector directly contributes more than £3.3bn to the economy, with a further £800m generated by its spending on supplies and support services.

In addition, the report calculates employees spending their wages already generate some £1.1bn.

Employment in the sector is calculated to be 206,410 jobs, of which over 150,000 are full time equivalents (FTEs), directly; 49,510 jobs (37,260 FTEs) in suppliers and supporting industries; and a further 41,100 jobs (30,930 FTEs) supported by social care employees spending their salaries.

ENABLE employs 2,200 staff – 1,800 in frontline social care roles. The charity provides services to over 6,000 people to live independently 'as active citizens in their local communities'.

Theresa Shearer, ENABLE Group’s CEO, says the research demonstrates improving wages in the sector benefits staff – and Scotland more widely:

“This new report lays out a detailed economic analysis that strengthens the case for significant investment in social care and, in particular, demonstrates how enhanced pay for the frontline social care workforce brings benefits to the wider economy.

“As the population ages and expectations of truly human rights-driven, self-directed support rightly grow, the social care sector must no longer be viewed as some expensive burden, but as a thriving engine of inclusive, sustainable growth for the future Scottish economy.”

The Chair of Disability Studies at Glasgow University, Professor Nick Watson says the findings should play an important part in changing the national narrative on care:

“Too often, care is presented as a burden; as something that we, as a society, are forced to provide and as a drain on our economy; using up resources that would be better employed elsewhere.

“In this excellent report, ENABLE have turned the tables on this idea and have been able to show the contribution care and the care sector makes to our economy.

"It is, as the report demonstrates, one of Scotland’s largest industries, employing large numbers of people and generating wealth in the process.

“The care sector should be seen as an asset to our community and not a burden.

“Investment in the care sector will not just provide better support for those it cares for, it will also help to boost our economy and provide good, secure and rewarding jobs.

“Hopefully, this report will start moving discussions forward and help to change the way the financing and economy of care and the care sector are framed.”

 

Read more: Sector reforms "must put social back in social care"; Watchdog: We must set skills requirements in NCS; Care sector facing bill for additional bank holiday

 

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