Scotland’s local authorities say the amount allocated to social care in the draft Scottish budget isn’t enough to pay agreed wage increases and sustain services, and will force them to make “impossible choices”. But the government says councils are getting more money for social care than before – and it’s up to them how they spend it.

From the day the draft Scottish budget was announced, the organisation representing Scotland’s local authorities, COSLA, has said the allocation for local government is too small.

In representations to ministers before the budget, councils had said that the funds for their work should include an urgent injection of an extra £750 million to ‘protect and strengthen social care”.

COLSA is now appealing to ministers to look at the numbers again, calling the current offer a “very poor settlement for local government which fails to address the dire financial situation”, and represents a “concerning and disappointing” cut to social care funding.

Their statement adds:

“Services already under immense strain will be pushed even closer to breaking point, and councils will be forced into impossible choices.”

The budget commits Scotland to paying its social care workforce the Scottish Real Living Wage, which rises by 85p in May to £13.45 per hour.  

But COSLA says the budget includes no dedicated additional funding for social care, and the £160m allocated for paying the Real Living Wage falls short of the estimated £175m cost of delivery.

COSLA Health and Social Care Spokesperson, Councillor Paul Kelly is accusing the Scottish government of putting care services at risk:

“Social care is fundamental to the wellbeing of our communities.

“The Scottish budget – which COSLA leaders agree is very poor – undermines the foundations of a fair and sustainable care system and risks reversing progress toward a model that truly meets people’s needs.

“Quite simply, this budget is not just disappointing for social care, it is damaging.”

Not a cut

Scotland’s Minister for Social Care, Tom Arthur MSP, says COSLA’s assertions are simply wrong.

Mr Arthur told healthandcare.scot:

“It is inaccurate to suggest that social care funding has been cut – the amount allocated has risen compared to last year.

“The 2026-27 budget delivers record funding of almost £15.7 billion for local authorities, a real terms increase of 2% compared with 2025-26.

“This helps address increasing demand for, and rising costs of, increasingly complex social care needs, workforce challenges – and UK government changes to employer National Insurance contributions and recruitment of international workers.

“Councils have said they want to retain statutory responsibility and accountability for social care services in their area,” Mr Arthur added. This means local authorities are responsible for how they choose to invest in those services – not ministers.”

Ministers says the draft budget delivers social care a cash terms increase to more than £2.3 billion from within the health and social care portfolio, exceeding the government’s commitment to increase funding by 25% by the end of the current parliament while supporting improved pay and conditions for social care staff.

Parliamentary committees are currently scrutinising the budget with a final vote on the budget legislation due to take place on 25 February.

 

Read more: Health and care in the Scottish budget; Care can be valued, visible, viable and visionary; Argyll & Bute appeals to ministers over care funding; Councils demand £750m boost for social care in 2026

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