Rachel Reeves’ recent announcement of her Autumn Budget has significant impacts on social care in Scotland.
Firstly, the rise in the Real Living Wage—higher than anticipated—carries important cost implications for Turning Point Scotland and other social care providers across the country. However, we stand by the principle of raising lower-wage levels as a positive step toward fairer pay for all.
In contrast, the recent adjustment to employer National Insurance contributions, outlined in the UK budget, presents a more challenging impact. This change introduces considerable costs for us and similar organisations. While the intention may not have been to affect voluntary sector organisations commissioned to deliver public services—this is unfortunately the outcome.
Despite delivering essential public services, third sector organisations like ours do not appear to qualify for exemptions, leaving us to shoulder the increased cost burden alone.
Our priority now is to work closely with other national providers to engage both the UK and Scottish governments to mitigate the impacts on Turning Point Scotland.
We urge both the UK and Scottish governments to consider introducing a form of exemption to organisations in the voluntary sector commissioned to deliver public services, or to increase contracts to fully fund the policy ensuring a fair approach that protects vital services for those who need them most.