Care Creates… Economic Value: why social care is one of Scotland’s most powerful economic engines
There is a simple truth: social care is not a drain on Scotland’s economy instead it is one of its greatest generators of prosperity, wellbeing, and community resilience.
Yet for too long, social care has been framed only as a cost, a pressure, or a budget line. The Care Creates campaign asks us to rewrite that story and to speak openly about the profound economic value that care creates every single day in every corner of Scotland.
And the evidence has never been clearer.
A £5.2 Billion economic contribution —– and Rising
The most recent analysis from Skills for Care & Development and Alma Economics shows that adult social care generated £5.2 billion in total economic value in Scotland in 2022/23. This includes the direct value of care services themselves, the supply chain ripple effects, and the additional spending by workers employed in the sector.
To put it plainly:
social care is a £5.2 billion economic pillar of modern Scotland.
Independent analysis reinforces this further: Scotland’s adult social care sector contributes £3.2 billion in direct Gross Value Added (GVA), with the remaining value coming from indirect (£0.9 billion) and induced (£1 billion) impacts.
This represents 2.9% of Scotland’s total GVA, a dramatic rise from 1.7% in 2016 — proof of a sector growing in value, importance, and economic necessity.
Every £1 invested returns £1.98–£2.00 in socio-economic benefits
Social care is one of the smartest investments Scotland can make.
The research shows:
- Every £1 spent generates £1.98 in socio-economic benefits, according to the Scottish Social Services Council (SSSC) economic value report.
- A complementary national infographic calculated that every £1 returns £2.00 in socioeconomic value, producing £34 billion of benefits against £17 billion in costs (2023 data).
Very few sectors and certainly none facing such acute underfunding produce a 100% return on public investment.
What does this value look like in real lives?
- Reduced demand on the NHS.
- Improved wellbeing.
- Stronger local economies, especially in rural areas.
- Peace of mind, stability, and dignity for families.
- Jobs in communities where few other major employers exist.
Social care creates independence, capacity, employment, equality, and hope.
A major employer that sustains communities
Scotland’s social care workforce is immense:
- More than 212,000 people in paid social services roles.
- 114,000 formal carers and 820,000 informal carers contributing directly to the nation’s wellbeing and productivity.
- Labour productivity of £28,400 per full-time equivalent worker.
In many rural and island communities, from Dumfries and Galloway to the Highlands, social care workers are foundational employers, providing stable income, reducing depopulation risk, and keeping money circulating locally.
As one recent professional discussion emphasised, social care is often a quiet economic anchor that keeps rural communities alive even when other industries retreat.
Independent Sector: the quiet economic powerhouse
The independent sector delivers over 80% of adult social care services and 76.7% of the workforce, generating £1.3 billion for Scotland’s economy through workforce contribution alone.
Yet it is this very sector that faces the sharpest financial instability, rising costs, recruitment pressures, and the long-term consequences of insufficient commissioning rates.
Economic logic is clear:
If the sector fails, Scotland’s broader economic stability is threatened.
Underfunding social care is economically illogical
Several recent national reports, including those from Social Work Scotland and Audit Scotland, are unequivocal:
Scotland is experiencing growing demand, “inadequate pace of expenditure growth,” and a widening sustainability gap in adult social care funding.
At the same time, the evidence has shown repeatedly that:
- Underfunding care undermines prevention and early intervention.
- When social care falters, costs shift dramatically to the NHS, families, and communities.
- The return on investment is so strong that every missed pound of funding is a lost wealth-generation opportunity.
As one colleague put it in a recent meeting:
“Just because government spends more doesn’t mean it’s enough because demand has grown far faster.”
Care Creates… Prosperity
The Care Creates campaign invites Scotland to reclaim its narrative:
Care is not passive, charitable, or peripheral.
Care is productive, growth-enhancing, and fiscally wise.
Social care:
- Creates jobs.
- Supports women’s employment and reduces gender inequality.
- Enables unpaid carers to rejoin the workforce.
- Keeps local employers viable.
- Prevents avoidable NHS pressure.
- Sustains community cohesion and economic participation.
It is time to treat social care as critical economic infrastructure, as important to Scotland’s future as transport, energy, digital connectivity, or education.
Professor Donald Macaskill , CEO, Scottish Care
#CareCreates
