As part of the local government settlement for 2016-17 the Scottish Government included a requirement to ensure that ‘all social care workers, including in the independent and third sectors are paid £8.25 an hour’. This was the then Scottish Living Wage (SLW)  A resource of £125M was provided to support ‘the living wage and other cost pressures’.  this was followed by a further £107M in 17-18.  For 18-19 a resource of £30M has been identified within the Scottish budget for the SLW with a futher £10M identified for the sleepover hours uplift.

This is a difficult commitment to implement as there are a number of challenges:

  • Multi- area providers as they need settlements from every area before they can implement the living wage across the workforce
  • Affordability– where hourly rates are not sufficient to meet the Scottish Living Wage and other cost components of delivering care and support providers simply cannot implement this initiative and this will lead to (a) contract and market exit or (b) reduced service provision.
  • Timescale- implementation of this scale of change requires quick turnaround of contract paperwork and decision-making within contracting authorities.
  • Approach- contracting authorities are taking a range of approaches to implementation. Some are failing to work with providers on this or ensure that hourly rates are sufficient.

Recent research by the University of Strathclyde sets out in more detail the implementation challenges and unintended consequences of this policy.

What is CCPS doing? 

We represent providers on the Scottish Goverment National Partners Group and gather and intelligence on how implementation is working on the ground.  We are involved in co-producing the 18-19 implementation guidance as well as work on overnight support redesign.

Living wage tools and resources

image (C)istockphoto.com/Gregory_lee

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