Independent analysis of how social care is financed is suggesting a doubling of funds for the sector would deliver transformational change for those giving and receiving care – and have a significant impact on Scotland’s gender and poverty gaps.

The Scottish Women’s Budget Group (SWBG) is calling for annual social care investment of £6.8bn which is says will be needed to both address long-term underfunding of the sector and secure the rights and the improved wellbeing of those receiving and giving care.

New research carried out by the independent analysis and campaign group shows that doubling annual investment in social care would enable workers to be paid a ‘fairer’ £15.21 an hour, while directly creating more than 40,000 new care worker roles.

The First Minister told parliament earlier this month that a pay increase to £15 would cost an additional £1.75bn and would be “irresponsible”.

However SWBG says their proposed new funding settlement would allow qualifications and pay to increase to levels already seen in Nordic countries, while also tackling entrenched gender inequality, high poverty rates and an overreliance on unpaid carers.

Sara Cowan, the Coordinator of the Scottish Women’s Budget Group, says Scotland’s social care sector is in a critical state and urgently needs significant extra investment:

“For too long care has been underfunded and undervalued and, with women undertaking the majority of paid and unpaid care work, this undervaluation has both caused – and continues to drive – significant levels of gender inequality across our society.

“But there is an opportunity for change.

“We urge the Scottish government to make significant extra investment in Scotland’s social care sector as a matter of urgency and we hope the numbers published in today’s research offer some benchmark as to what is needed to drive transformative change.”

Today’s report comes as the Scottish government launches a £500,000 recruitment campaign in attempts to attract people to fill vacancies across the sector.

Scotland’s social care services are understaffed, with many facing severe challenges in recruitment and retention. Some areas have been forced to scale back care packages, with unpaid carers left to fill in the gaps in provision.

Unions have raised concerns that the Scottish government has been too slow to implement fair work and collective bargaining, issues they say cannot wait for the creation of the national care service (NCS).

The NCS, which is due to be up and running by 2026, offers an important opportunity to invest in care as social infrastructure as part of economic and social recovery, according to the SWBG’s report.

Around £3.85bn, or 2% of Scotland’s total GDP, was spent on social care in 2021/22. This is set to increase by around £62m this year, which includes funds to create the NCS.

The SWBG’s report says the major spending increases needed to fund a high quality, universal and accessible social care system could be partly achieved by major tax reform, including the introduction of new devolved local wealth taxes.

Additional direct and indirect tax revenue from the extra investment in the sector alone would yield around 46% of the extra needed cost, according to the report.

The research, which was part-funded by Oxfam Scotland and carried out by the Open University’s Dr Jerome De Henau, also examines a less ambitious scenario, requiring investment of £5.1bn per year. This, it says, would see social care coverage increase by 20%, and wages across the sector increase to £12.50.

Both scenarios build on more recent commitments to end non-residential care charges within this parliamentary term and improve the wellbeing of unpaid carers, while taking into account future pressures and demand.

Jamie Livingston, Head of Oxfam Scotland, says that investing in care cannot wait any longer:

“Across social care, services and the carers who deliver them are stretched to their very limit, and often well beyond.

“Despite the importance and skill of their work, too many social care workers face the injustice of financial hardship. Low wages and poor working conditions remain a blight on the social care sector, with the cost of living crisis continuing to add pressure.

“This can’t be right. Yet, the truth is these are the symptoms of chronic undervaluation and underinvestment in Scotland’s care support services.

“It doesn’t have to be like this. Transformative change is possible, and this new research shows what it would cost.

“It outlines not only how increased investment would ensure fair pay for social care workers; but also how it could widen access to care, create thousands of new well paid jobs, and provide a significant return on investment.

“Investing in care is an investment in Scotland’s future.  Our collective wellbeing depends on it.”

Both Oxfam Scotland and the Scottish Women's Budget Group are members of the ‘A Scotland That Cares' campaign, which is calling for the Scottish government to set a new national outcome to fully value and invest in care.

A parliamentary reception will be held on the evening of Tuesday 7th March, and carers and those working for organisations providing care are invited to attend.

 

Read more: Ministers launch ‘more to care’ campaign; Social care wage settlement branded ‘derisory’; £153 a week for bread and jam 

 

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