Scottish Care has today released a new Real Living Wage (RLW) and Sustainability Briefing Pack outlining the growing financial pressures facing Scotland’s Care at Home and Housing Support sector. The publication accompanies a national media statement highlighting the urgent need for government action to protect essential community care services and the workforce who deliver them.

A widening gap between costs and funding

Care providers across Scotland are grappling with significant financial strain following the Scottish Government’s recent unilateral change to how the RLW uplift is calculated.

This change—made without consultation with COSLA, providers or trade unions—has created an estimated £19 million shortfall in funding. The revised approach places the burden of rising wages onto providers while contract rates remain too low to cover the true cost of delivering care.

This funding gap is deepening instability across the sector. Many providers report that they are struggling to maintain financial viability, absorb statutory workforce costs, and protect service quality.

Systemic pressures beyond the RLW uplift

The briefing highlights wider structural challenges that continue to undermine the sustainability of social care services, including:

• Opaque commissioning and procurement practices by local authorities, leading to inconsistent rates and unpredictable referrals
• Chronic underfunding of care at home services
• Delayed payments and uplifts that do not match statutory wage increases
• Growing financial risks, pushing some providers to withdraw from publicly funded care
• Unequal access to care arising from inconsistent local decision‑making

These pressures threaten both provider resilience and the continuity of care for individuals and families who rely on community‑based support every day.

Growing evidence of a sector at breaking point

Scottish Care’s own research reinforces a clear and concerning pattern:

• Wage pressures are rising faster than contract uplifts
• Many providers now operate at break‑even or at a loss
• Chronic underinvestment is increasing the risk of service reduction or withdrawal
• Variability between local authority practices is eroding fairness and stability

Collectively, this evidence strengthens the case for coordinated national action.

Scottish Care’s call to government

In our media statement, Scottish Care emphasises that the current funding model is unsustainable and places providers “in an impossible position”. We are calling for:

• Restoration of sufficient RLW funding
• Transparent, consistent commissioning across Scotland
• Contract uplifts that reflect the real cost of delivering care
• A sustainability mitigation plan to protect services and the workforce

Without urgent intervention, the sector faces increasing instability, workforce insecurity, and risks to the continuity and quality of care.

Access the full briefing

The full Care at Home & Housing Support RLW/Sustainability Briefing Pack (February 2026) can be accessed here: https://scottishcare.org/wp-content/uploads/2026/02/SRLW-CAH-BRIEFING-PACK-04-02-26.pdf

Scottish Care members can access a comprehensive Advocacy Pack via the Members Section of the website.

For further information, please contact Scottish Care at [email protected] or 01292 270240.